Question

• What does
  • Business Model: Key Revenue Streams

mean when writing a business plan?

Answer 1

Business Model

• How does your business make money?
• What do you actually do?
• Which gap are you trying to fill?
• How do you generate revenue?
  • What are your revenue drivers?
  • What are those variable whose addition / subtraction / multiplication / division gives the revenue?
• What are your cost drivers?
• Is your business asset heavy or asset light?
• Is it capital intensive or capital light?
• Is it scalable? Can it be easily replicated?
• Entry barriers: How easy is it to copy your business?
• Uniqueness, USPs

Key Revenue Streams:

• Revenue drivers: what drivers revenues? What leads to generation of revenues?
• Geographical segments
• Business segments
• Operating segments
• Sources of revenues
• For example: A company like Accenture have following different revenue streams:
  • Management consulting
  • Technology consulting
  • System Integration
  • Outsourcing
• Further the revenue streams can be arranged geographically say:
  • North America
  • Asia & pacific regions
  • Latin America and so on...