5. Deliver:
Solutions are evaluated for viability and
long-term sustainability to discover
which are true opportunities.
Entrepreneurs deliver these solutions by
mobilizing resources, venture planning
and leveraging networks.
6. Deliver:
Solutions are evaluated for viability
and long-term sustainability to
discover which are true opportunities.
Entrepreneurs deliver these solutions by
mobilizing resources, venture planning
and leveraging networks.
7. Costing:
• Research costs of inputs, labor,
products, transportation, etc. to
determine
Modeling:
• Creating a guesstimate of how much
money you might earn and spend
8. Costing Basics
There are two basic types of cost that
you need to keep in mind:
• Fixed
• Variable costs
9. Costing Basics
Fixed costs: Fixed costs don’t vary with
the level of production. A good example
is a lease on a building.
Variable costs: Unlike fixed costs, variable
costs change with
the level of production. For example,
material used in production is a variable
cost. (from Dummies.com)
14. Modeling Basics
Look for:
•Size of “market” (potential purchasers)
•Guess number of which could be purchases
• Google is maybe the popular product in
the world and only 65% of people use it
• Only 42% of people drink Coke
• Be conservative
•Guess how much they will pay
•Multiply!
15.
16. Example
Best guess:
~26,000 schools in SA (“How many
children in SA?”)
x 2% (520) will pay (Guess)
x R200 (Guess—could ask creche)
R104,000 (money we earn)
18. Example
Total costs:
R2400 (website, stencils, cleaning supplies)
R85,000 (cost of paint/brushes/transport)
R87,400
Total money earned:
R104,000
Profit: R104,000 - R87,400 = R16,600
19. Deliver:
Solutions are evaluated for viability and
long-term sustainability to discover
which are true opportunities.
Entrepreneurs deliver these solutions by
mobilizing resources, venture planning
and leveraging networks.
20. From Before:
Market Research for your solution(s)
Focus on:
• Competitors
• Complementary Partners/Products
• Costs
• Size of need/market
21. DO YOUR BEST to Cost and
Model your BUILD Lab solution.