Business Model Setup
Define how the business creates value, acquires customers, delivers the offer, earns revenue, and handles major costs.
What Business Model Setup gets you.
By the end of this upgrade you will have a clear, written business model describing how the business creates value, reaches customers, delivers the offer, earns revenue, and covers its major costs.
- Results from business idea validation
- A rough estimate of your operating costs
- A defined target customer segment
Run the upgrade.
- 01
Define the value proposition
State clearly what specific outcome or result the business delivers for the customer, and why it's better than existing alternatives.
- 02
Define the customer segment and acquisition channel
Specify exactly who you're selling to and how you'll reach them (referrals, social media, cold outreach, marketplace, partnerships) based on where your validation conversations came from.
- 03
Map the delivery process
Outline the exact steps from customer purchase to receiving the product or service, noting any tools, suppliers, or your own time required at each step.
- 04
Define the revenue model
Decide how the business earns money: one-time sales, subscription, retainer, commission, or hourly — and why that model fits your offer and customer behavior.
- 05
List major costs
Identify fixed costs (software, insurance, licensing) and variable costs (materials, contractor time, payment processing fees) required to deliver the offer.
Contribution margin per sale = price - variable cost per unit
- 06
Check basic viability
Confirm that expected revenue per customer meaningfully exceeds variable cost per customer before fixed costs are covered.
Break-even customers = fixed costs / contribution margin per sale
- 07
Document the full model on one page
Summarize value proposition, customer segment, acquisition channel, delivery process, revenue model, and cost structure in a single one-page document you can revisit and share.
- You have a written value proposition and defined customer segment
- You've mapped the delivery process end to end
- You've chosen a specific revenue model
- You've listed fixed and variable costs and calculated a rough break-even point
- The full model fits on a single page
Quarterly
- Revisit if acquisition channels stop working or costs change materially
- Update after major customer feedback or new competitor activity
Business structure, licensing, and tax obligations vary by location and entity type — confirm requirements with a qualified professional before operating.