Step 8 – where we decide our revenue model
This topic is so critical that we had the chance to have two mentor sessions this week. After Tuesday’s session on business model, last Friday we also had the privilege to spend 2.5 hours with Jan Fuelscher, a figure of the Swiss Startup Scene. Jan’s presentation touched on many points, and once the strategic decision of which business model to implement has been made, the next focus point is going to be pricing!
Jan’s comments were quite bold and he was able to share his experience from the many startups in which he participated. This is invaluable as it puts into real perspectives what is written on a slide -> not just words anymore but real wisdom collected from real experiences. Thank you Jan for spending the time to share this with us.
So over the weekend, we crystallised the learning from the presentations, used the results of the review of the 55 business models that exist (as established in this academic paper by the University of St Gallen) as well as outputs of our discussions with a number of experts, and we got to choose our business model! We settled for #48 (looks like I am ordering Chinese food…) – the subscription model…
Did you find us?
We are the fat purple line in the middle, the new Elisabeth Line, stopping at Netflix, Salesforce, Spotify and DollarShave Club… What could possibly go wrong? We just need to Mind the Gap between reality and our expectations!
Our model is based on parents paying a monthly fee so their teenagers can get unlimited access to our business recipes and online support. We will add a bit of twist to the model by offering a 15-days free testing period during which teenagers will be able to receive their first instructions to set-up their “business” and make progress towards the objective of generating their first cash earnings.
Highlight of the week
In a separate, but very complementary process, we were invited to pitch to the Start-up Lab EDHEC on Saturday morning, as our startup idea was selected as a study case for the Entrepreneurs’ class. We presented for about 2 and ½ hours to a group of 28 students who are now working on our case… on topics such as: User/client need analysis; Technology, product and service analysis; Business model analysis; Market(s) analysis; Competition analysis; Pricing analysis; Value chain analysis; and Valuation analysis.
We will meet the students again in 3 weeks to hear their feed-back and discuss their conclusions. This will provide us with lots of inputs and we want to thank them already for their hard work! We are preparing a surprise for them! You will know more in 3 weeks. Sadly, this will be done via Skype… too bad, we would have loved to be on the French Riviera for the Easter weekend !
The Mentors’ Review session is approaching (next Tuesday 4 April) – this will be the first real test of the idea and of the quality of the work that has been put into developping this so far… the next few days are going to be intense!