Business Model Canvas Cost Structure

A credible financial plan is another critical requirement for successful startups, and understanding your cost structure is a key part of your financial plan. The hypotheses in all the other segments of the canvas affect your cost structure. In the cost structure section of the canvas, you'll want to document the nature of all of those costs - including your hypotheses about your variable costs, fixed costs, economies of scale, economies of scope. And of course, you're recording those hypotheses so you can go test them!

This video is part of a playlist series on capturing your startup business model hypotheses using the business model canvas template. The playlist covers all 9 sections of the business model canvas:

Customer segments
Value proposition
Customer relationship
Channels
Revenue sources
Partners
Key activities
Key resources
Cost structure

The book Business Model Generation provides additional background on the business model canvas and is something I recommend for all entrepreneurs (order your copy on Amazon at https://amzn.to/2Qg3luL).

This StartupSOS channel provides practical, how-to advice for new entrepreneurs who plan to build a growth startup with investor funding.