INTRODUCING THE START! CAPITAL CANVAS
Quickly evaluate The Financial Potential of your Business Model Design
The Start! Capital Canvas is a visual tool designed to assist entrepreneurs and innovation teams to quickly evaluate the financial results of a newly designed business model.
The Canvas helps you consider the best way to maximize the profitability of your design without compromising the desirability and feasibility dimensions of the business model.
Finally, the tool helps in quickly estimating the potential investment needed to start this business model.
How To Use The Canvas
1. Understand the potential revenue streams: estimating sales volume and selling price per revenue stream. Together they make the total potential income per revenue stream. Selling Price X Sales Volume
2. Understand your total costs including Variable costs and fixed costs. FC + VC
3. Quickly estimate the projected profit margin: ((Selling Price x Sales Volume)-(FC+VC))/(Selling Price x Sales Volume)
And your break-even point: FC/((sales price)-(VC))
4. Once you have reached that point, you will need to think for a moment about whether or not the numbers feels good. if they don't, consider making modification to the business model.
5. After making the needed iterations to make the numbers look better, estimate how much initial capital is needed to acquire the key resources essential for materializing the key activities and the value proposition.
6. Add to it the total needed capital to operate the business for at least 6 months and you have a ball park figure of how much money you will need to start!