Center for Entrepreneurship

Business Model deep dive and

Revenue Model
June 2024
Vinay Murudi
Visiting Faculty, Center for Entrepreneurship,
LinkedIn: @vinay-murudi

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Entrepreneurship in Action –
Business Models

WHAT IS BUSINESS MODEL?

Essentially, it’s a framework

• A Framework for your Revenue
• To path for profitability
• For serving your customer
• For growth of your company
• For customer support
• Addressing Supply and Demand
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 Components of Business Model

• Market Segment and Growth – Which market you are serving ?

Scope • Market share of firm vis-à-vis competition

Price • Quality Adjusted price – get your price right !

• Revenue Source – Segment

Revenue • Margins and market share in each revenue source

Connected Activities • Activities are in line with customer value and scope
and Ecosystem
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SEEC Model of Idea Generation

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 Business Model vs Business Plan

Business model is a conceptual framework that describes how a company

creates, delivers, and extracts value.

• It includes a network of activities and resources to create a sustainable and scalable business that
delivers value to target customers.
• Business models help entrepreneurs generate value and scale. They do this in several ways: by
fulfilling unmet needs in an existing market, by delivering existing products and services to existing
customers with unique differentiation, and by serving customers in new markets.

A business plan is a formal document that provides background and financial

information about the company, outlines your goals for the business, and
describes how you intend to reach them. A business plan supports the business
model and explains the steps necessary to attain the business model’s goals.
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Adaptability

A startup is a temporary organization

in search of a scalable business model

Ability to tweak and change business models is

not as quick or as efficient for some larger or
more established organizations, and some of
them have ultimately failed because of their
inability to change their business models

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Customer focus and evolution

The key to a successful business model is focusing on what

customers want and where they are going

Bezos says, “I really look where the customer

is going and where I need to deliver value for
that customer, and I don’t care about legacy. I
will do what it takes.

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Four Parts of Business Model

Offering
Customers
Infrastructure
Financial Viability

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4 components

All must coexist, and none

Competitive advantage
can be ignored; however,
doesn’t always come from
each can be a source of
the product or service you
innovation and advantage
are offering.
over the competition.

It can come from the

other areas of the
business as well

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Offering

Customers: people who

populate the segments
of a market served by
Customer value the offering.
proposition (CVP): a
statement that describes
Offering: what you are exactly what products or
offering to a particular services your business
customer segment, the offers and sells to
value generated for customers.
those customers, and
how you will reach and
communicate with
them.

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Customers

In addition, you have to

Customers include the Entrepreneurs typically can’t determine how you will
people who populate the serve everyone in a market, reach those segments and
segments of a market that so you have to choose whom how you will maintain a
your offering is serving. best to target. relationship with the
customer

WHO is my Customer? And Who

Is NOT !! 11
Infrastructure

Infrastructure: the resources

(people, technology, products,
suppliers, partners, facilities,
cash, etc.) that an entrepreneur
must have in order to deliver the
CVP.
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Financial Viability

Financial viability defines the revenue and cost structures a business needs to
meet its operating expenses and financial obligations: How much will it cost to
deliver the offering to our customers

Business model is just about revenue and costs, but a business model is more
than a financial model.

It has to describe more than how you intend to make money; it needs to
explain why a customer would give you money in the first place and what’s in it
for the customer.

This is where the CVP comes in.. 13

The CVP

For your ▶ it must offer better value than the competition,

CVP to
be truly
▶ it must be measurable in monetary terms (i.e., you must
effective, be able to prove that your CVP is better value than other
it needs offerings on the market)
three ▶ it must be sustainable (i.e., you must have the ability to
qualities: execute it for a considerable length of time

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The Revenue Model

Revenue: the income gained from sales of goods or services

How entrepreneurs
A revenue model is a
will make money and
key component of the
capture value from
business model and
delivering on the
identifies how the
customer value
company will earn
proposition (CVP) that
income and generate
is outlined as part of
profits
their business model

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Drivers of Revenue

▶ How much are my customers willing to pay?

▶ How many customers do I need?

▶ How much revenue can be generated through sales?

▶ If I have more than one revenue stream, how much does each
stream contribute to the total?

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 Different Types of Revenue Models

Unit Sales
• The amount of revenue generated by the number of items (units) sold by a company.

Advertising
• The amount of revenue gained through advertising products and services.

Data
• The amount of revenue generated by selling high quality, exclusive, valuable information to other parties.

Intermediation
• The amount of revenue generated by third parties

Licensing
• The amount of revenue generated by giving permission to other parties to use protected intellectual property
(patents, copyrights, trademarks) in exchange for fees.
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 Different Types of Revenue Models
Franchising
• The process whereby franchises are sold by an existing business to allow another party to trade under the name of
that business.

Subscription
• The amount of revenue generated by charging customers payment to gain continuous access to a product or service.

Professional
• The amount of revenue generated by providing professional services on a time and materialscontract.

Utility and Usage

• The amount of revenue generated by charging customers fees on the basis of how often goods orservices are used.

Freemium
• The amount of revenue gained by mixing free (mainly web-based) basic services with premium or upgraded services
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QnA

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Course Assessment – Final
Semester End: Practical Project – Solve a Problem/Make a Start Center for Entrepreneurship

• You can either “Solve a Problem” you encounter in your

university or community or in any other context. Or you can
“Make a Start” and start working on a venture idea you have
come up.
• Start thinking early about what project you will be working on.
• If you actively participate in class activities, and complete
reflections and assignments, doing the project will be easy and
exciting.
• You will be able to apply class learnings to practically working on
the project.
• The submissions for the project will be in the form of a business model canvas plus a project report or
a pitch deck that you will have to present in the class.

• Teams must consist of 4-6 students. Each team will work on a unique idea that they believe they can
build into a venture or problem that they believe they can solve. Multiple teams cannot work on the
same idea. Teams that have taken concrete action towards putting their plan in motion will get bonus
marks. 20
FINALs:
22nd and 24th July
Group (after any changes):
22nd June

Topic Submission by each group:

26th June

Final Report Submission:

22nd July (for all Groups)

Presentations:
22nd and 24th July

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QnA

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Business Model and Pricing - Example
B2B2C Per User Pricing
• B2B Market , Product for Students and Teachers • Per user pricing model for various
(users) College Fee Range (PU Segment):
• Various options and learning packages as per
options based on institute need
• Per user per year pricing with EMI option 50K to 1.5L Per Year
institute need – Partnership model
• Direct Sales and Channel Partner Model (in certain cases only)
• Enveloping and Foot in door strategy • Monthly usage-based pricing for online
• Leverage Content partner for sales – classes
compliment North and South India market with • Subscription based pricing for Master
Universal books classes and Doubt clearing sessions
Our Price Range:
Full Package with books and Tab: 15-20K
App Only or Books Only: 3-6K
Freemium Model Bundle Option Full Year learning package with Teaching: 40 to 50K
• Freemium Model – Free App with • Only Books (Foot in door, complimentary app,
relationship building and content validation)
Limited content for trial • Books (SMF) + Learning and Assessment App
• Free 45 days trail program with our Tabs • Learning and Assessment app package with
and SME support for onboarding and Secure MDM based exclusive tabs (Learning
trail only tab)
• Learning App Package with Teaching (RK Our Pricing model is most competitive, in the range
Classes) of 10 to 20% range of college fee
• Learning App Package with Online class
platform (college) and Online doubt clearing
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Business Model Evolution - Example
Userbase
Current Price and Plan and
Model and
Solution Package
Revenue
Target
Enablers: Strategic Convert 20+ Trial
Partners - Universal users
Books and Dr RK
Classes Convert MH, Delhi
leads from UB
Learning Package 5 to 15K/Stu/Yr
(Apps+books+live) 25K/Mo/College Next round with
25 Colleges, 5K
Costal KA focus
B2B students
50L
+ Teaching 40 to 50K / Year/
Augmentation Student
myPAL Platform 2Cr - 2020

Masterclasses, 200 to 500 Per user 2 Colleges with E2E

B2B2C Doubt Clearing / Session / myPAL with Teaching ,
sessions Cash Redeem Grand Test

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  Employers/  Marketing  Online Courses  Improved user experience
 IT & Website/App – better site response and  Students K12 and Test
Companies designed to teach very
 development/ search tools Preparatory
Students effectively using 
maintenance  Customer service Parents
 Teachers Animations and 
 App Development  Mobile App for easy Schools
 Graphic Designers Graphics  Teachers
 Content Development access
 Domain experts in  Expert Curated E-  Consultants
 Collaborating with  Customer retention by
Education companies, students, Learning content providing a massive  Fresh graduates seeking

Busine
 Educational industry experts etc  Students to learn variety of courses to guidance
institutes  Operations curated content from choose from.
 Outsourced  Customer Service class 4-12

ss customer service  Personalized and

agencies Adaptive learning
 Course

Model 

Technological expertise
UX/UI Experts

recommendations
GRE, GMAT, CAT
Preparatory courses



Website – BYJUS.com
Mobile APP – BYJU’s

Canvas
 Student Psychology and Google Ads
Learning experts  Emailers
 Physical (Office, systems,  Social Media handles
manpower etc)  Television ads
 Customer database  Customer Service
 Financial security with
very low borrowings and
trade payables

 Fixed cost (salaries, rents, physical infrastructures, website maintenance  Paid Subscriptions
 Allied services
etc)
  Mobile revenues
Graphic and other high end work expenses
 Variable cost (incentives, travel, interest, contract based salaries etc)  Google Ad sense and space selling to companies

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Center for Entrepreneurship

Happy Entrepreneuring!
Q&A

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