January 23, 2025
Today I had my bit on Business Model Innovations & Pricing Strategies, as part of the Inspirational Talks at the Entrepreneurship Program from Faculdade de Ciências e Tecnologia da Universidade NOVA de Lisboa, and thank you Belma for inviting me to the stage!
The 4th class of the day is not an easy one and it can be very tiring, so I'd like to also extend my appreciation to all the students who came to this talk to learn more about the economical side of innovative ideas in startups.
Here are my key takeaways from my bit on how to effectively craft a Business Model and a Pricing Strategy for your solution:
It's a 4-step process, just after defining the problem you want to solve.
1) Define your Value Proposition and your Optimization Factors:
- Define the unique value your solution brings to your customers and the factors that are improved when that customer acquires your solution. Some factors can be time, costs or many others you could think of, depending on the industry you're selling to.
2) Know your ICP (Ideal Customer Profile):
- While going for sales, you need to find the KEY customer profile. You don't need to know who your secondary customers are at this stage. You need to find the key profile who will trust you from the beginning: the early adopters who will endorse you and introduce you to others.
3) Define your Cost Structure:
- From fixed costs that don't fluctuate to variable ones to which you don't know how much exactly you're going to spend, define which ones directly impact your solution.
4) Define Revenue and Payment Models:
- Use your optimization factors and cost structure to define the solution's price. Research how much time and money is being spent on the problem and how your competitors are doing this as well. Mitigate the problem with your solution and price it according to the problem reduction (or factor improvements) you can bring to your customers. The payment method and frequency should be as simple as possible. If your customers are confused scratching their heads trying to understand how much they will pay for your solution, you'll find yourself in a bad spot.
I hope to have helped you with this guide and that you learned something from this, and I'm looking forward to hear more from your ideas and discuss more on this topic and others. Wishing you all a great month in this program!
January 23, 2025
