A asset is anything someone owes you some future benefit.

I mean how do they hear of our products, how do they know about you, and as we'll see later one of the interesting things is there are some customers that are users like in Google

So what we could do if we wanted to make this a little bit fancier, we could say that a new customer would pay and then we can say that's y, so y is equal to 0.29x minus 3 if x is greater than 10, if the guy or the gal orders more than 10 photos.

Let's go to month two

Some of the revenue model questions

not what engineering or the founders thought

So we've done no catering this month but we've gotten a lot of money

It's 0 otherwise.

And in value proposition, the goal of this is to find out that minimum viable product.

The first set of things are paid demand creation activities.

You cater an event where the cost to you was 200

By now, you're intimately familiar with the business model canvass.

You said Look. I got this 200.

In customer relationships all the get keep grow metrics, some of which we talked about, some of which you'll discover, what were the customer acquistion costs?

The lawyer has a lot of wealthy clients.

And so you're going to develop both corporate or company and product positioning, and you're going to do this way before you ever spend money on external PR agencies by actually listening to your own customers.

Now let's go to month 3.

He cheated his clients out of a lot of money.

So in month 1 you cater an even where the cost to you was 100

You know, revenue stream.

And I got scratch up front.

But we don't get any revenue because we're doing the cash basis accounting

So on day one, these were their initial hypothesis coming into the class.

We go out of business typically not because we didn't deliver a product.

lot of fees for doing this, or maybe he just likes giving

Now if you remember we started here on the left. We didn't earn and paid media.

Many companies have huge databases of customer information.

Now we finally come to the last part of the business model canvas.

Instead of pricing based on cost,

You cater an event where the cost to you was 200

I have no idea where my husband is.

That's how much a regular customer would have to pay.

So in our last lectures we talked about value proposition, customer segments, distribution channels, customer relationships get, keeping and growing customers.

So this right here is pretty much a simplified version of a function that would describe what a new customer would pay.

If you have world's most perfect business model, investors would love to see this number much bigger than this number and so what you want to look for is a well balanced model that takes into account how much you need to acquire customers but how much ultimately you'll extract from them over the lifetime.

Then x is going to be 10 times 0.29 is 2.90 minus 3 is negative 0.10.

Why are you saving them a ton of money?

The customer is not going to pay negative 0.10, which would be like the store paying them 0.10 for them to print 10 photos, the customer's not going to pay anything.

Apple is one of the few, truly cares.

What's the sum of all the revenue from day 1 purchase, so you're keeping them through all the grow activities you're undertaking.

As was simulated, the value proposition includes all the features of your product but also the pains and gains you're solving for the customer segment and that's where the market goes.

We've got 400 from the previous month's customer, and 200 for a customer you're going to cater for next month

Your advance for the next two weeks.

So in the last lecture, you remember the business model canvas, all the 9 components of a startup.

They could tell you that I want bigger, faster, cheaper status quo.