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Step 3: Modeling the future

Your investor can now relate to the problem and how you are solving it.

Good progress.

Now the hardest part begins.

Monetizing your solution.

That's communicated with your business model, revenue model, and financial model.

What should a good model convey?

Your Segmenting, Targeting, Positioning & Pricing

How are you packaging your solution and how are you pricing it?

| Your cash ATM

How are you going to maximize LTV from each customer that you acquire?

It can be cross-sell/ up-sell potential or stickiness (maybe SaaS, razor & blade model, outright-purchase, etc). But your model should allow you to generate higher relationship value with your customers over time.

Your clinginess

Your products or pricing strategy might not be very different than your competitors, but let’s say you have managed to make the process efficient or your approach to business is unique, that's also a significant advantage. Talk about that.

So at the end of the day, it is not how you have sold yesterday. It is also how you will be able to sell at scale that matters.

Don't do these 1. Talk about several monetization opportunities.

2. Change business models from your business core.

3. Say your model is unique and hence you will get customers.

4. Say good things will happen only to you, when your industry data points to otherwise.

Here is what I know works

You need not follow industry norms for a model, there can be smarter ways to do business. Try and simulate various models and see their value to your company over time.

2 Focus more on value generation constantly and how you can scale doing that staying close to your core values constantly. 3

Focus on getting core metrics right from the modeling to your internal targets. This helps investors visualize your goals and how likely you would be to achieve them. 4

Stay on point. This is hard since there is a lot you would want to communicate. Think of saying less as packing more surprises for investors later. #startups #entrepreneurship #venturecapital