Unit 7: Building Your Business Case
Understanding Your Financials
Outlining your **revenue model** and **cost structure** is a critical step in building a viable business case. It’s where you answer the fundamental questions: How will you make money, and how much will it cost to operate?
A solid financial plan helps you:
- **Set Prices:** Understand what you need to charge to be profitable.
- **Plan for Growth:** Forecast future income and expenses.
- **Secure Funding:** Present a clear financial picture to investors.
In this lesson, you’ll practice identifying key revenue streams and estimating your costs to understand your business’s financial viability.
Revenue Streams & Cost Structure
Every business has two primary financial components:
Revenue Streams
The various ways your business earns money from each customer segment. (e.g., subscriptions, one-time sales, advertising).
Cost Structure
The sum of all expenses required to operate your business. This includes both fixed and variable costs.
Activity 1: Simple Profit Calculator
Enter your expected revenue per month and your monthly operating costs to see a simple profit calculation. This demonstrates the relationship between income and expenses.
Activity 2: List Your Costs
List your major monthly costs, such as salaries, rent, or software subscriptions. This helps you break down your total operating costs.
