Two dudes tent in the desert, suddenly a lion comes along. One of them starts to panic, the other one puts on his running shoes. First one: “You’re crazy, you can’t outrun the lion!” Second one: “I don’t have to outrun the lion. I have to outrun you!”
Revenues, Costs and Prices
“If you look at your pricing and come to the conclusion that you’re in a competition you may want to rethink your business model.” Nils Hoegsdal gave us useful tips in terms of revenue streams and cost structure. Since the market type affects the pricing you better think twice about which market to enter. Do you want to enter an existing market and squeeze a new coke brand in between Coca Cola, Pepsi, fritz-kola, Afri-Cola , Club Mate Cola, and thousands of off-brands? You see, competition is at hand. The price is already shaped by others. In a new market you are much more likely to be able to implement your own pricing strategy.
Rolf Hecker also provided helpful support. He is head of the Technology Transfer Office at the University of Tübingen. As such he advises and supports inventors, researchers, founders and investors regarding the co-operation of science and economy.
In addition to the lecture on revenue streams and cost structure business coach Barbara Hoisl held a workshop on building a financial model: Why do you need a financial model at all? How do you build it? She proved that a profitable analysis is not rocket science. Subtract the money you spend on chocolate (= expenses) from your pocket money (= revenue) and Ka-Ching: Profit! Ok, there is some more to it, but by the end of the workshop our teams managed to professionally predict their future profitability.
Lean Monday No. 8
Lean Monday No. 8
