The Entrepreneurial Mind and Navigating Financial Landscape for Technopreneurs

The instructor gave us two lectures to learn from, and it's about Revenue Models and Navigating the Financial Landscape.

The first lecture which is about revenue models discussed about its definition, importance, advantages, where is it used, and what to do to have a revenue model.

Revenue Model is a strategic framework, acts as your business blueprint to model how your startup generates income or revenue. A sustainable Revenue Model has three important parts: Longevity, Impact, and Resilience. Longevity talks about the long-term viability of an organization, Impact talks about financial provision to scale initiatives, and Resilience talks about management of coming challenges.

Social enterprise is defined as business with specific social objectives that has a primary purpose of seeking to maximize profits and benefits to what needs them, and then profit to fund for social programs. My understanding to this is to be able to have a sustainable startup by gaining profit and have revenue for their own development. On such note, Social Enterprises can be profitable and are not working similar to how charities work, it also prioritizes to invest their profits into their objective.

The following are the key components of a revenue model: 

1. Product or Service Offerings - what you can offer to your target customers

2. Pricing Strategy - what makes your target customers pay you

3. Customer Segments - what are the problems they encounter and the solutions they are looking for

4. Distribution Channels - ways to advertise your product or service to your target customers

5. Sales and Marketing Strategy - mechanics of retaining and getting more customers

6. Revenue Streams - source of income to continuously support or produce your product or services

7. Cost Structure - understanding of the relationship of expenses and revenue generation

The first one is Revenue Models for Social Enterprises, also called as Innovative Revenue Model, and there are four types of these models:

1. Donation and Grants

    This refer to funds provided by individuals, organizations, corporations, or government entities to support the activities of the social enterprise, they are usually given funds without the expectation of financial return. One example that uses this way of Revenue Model is the Light of Hope Philippines, which aims to help mitigate climate change and uplift the lives of  less-privileged communities through the use of renewable energy. 
2. Social Impact Bonds

    These are financial instruments where private investors fund social programs or interventions, they are to achieve predetermined social outcomes to be paid by the government or outcome funder. This is also called pay for success. One example is ROCA, its mission is to be a relentless force in disrupting incarceration, poverty, and racism by engaging the young adults, the police, and the systems at the center of urban violence to address trauma and allow the change of human and society's nature.

3. Pay For Performance Model

    This model involve payment based on achieving specific and measurable outcomes, they are paid when they deliver pre-determined objectives. One example is the Medic Mobile, which improves healthcare services into the remote communities by utilizing the technology.

4. Hybrid Models

    These models incorporate both revenue generating activities and social impact mechanics, they balance impact generation with a commitment for the greater cause. One that uses this model is TOMS, where they gain profit to help others in need by donation.

The second one is called Revenue Model for Non-Social Enterprises, or also called Traditional Revenue Models, and there are also four examples of these models:

1. Subscription Based Model

    This model involve customers paying a monthly fee for product access, like Netflix.

2. Freemium Model

    This model involve providing customers free access to basic usage, and paid access to advanced uses. YouTube can be used to watch and play videos online, allowing users to download low quality videos; however, downloading high quality videos and allowing the user to play it on background can be provided if the user pays.

3. Licensing and Franchising

    This model involve granting the right to use a product, or service to another party. Example is Cover Corporation's Hololive and Holostars (Virtual Idol Agencies, or who we call youtubers) granting the use of their trademark to content creators like HoloCure's developer to advertise their idols farther of reach from Japan. (I'm actually not sure if this is allowed as an example, it's just a way of me looking up to YAGOO)

4. Advertising and Sponsorships

    This model involve selling advertising space to allow sponsorships of the channel, generating revenue. One big example is Television Channels like GMA and TV5.

In managing a revenue model, there are several things you need to consider:

1. Factors of selection - market trends, competitions, customer preferences, growth scaling, and cost structure

2. Evaluation - Profitability, Social Impact, True to its mission, and Long term Sustainability

How to select a revenue model:

1. Research - gather data and conduct research in the market, understand your target customer's needs, marketing mechanics, and competitor strategies.

2. Brainstorming - explore various revenue models, assess each one of them based on the business' goals.

3. Testing - test the revenue model whether or not it works. Is it effective? Does it need adjustments? 

4. Decision - what's your team's judgment on your revenue model? 

Among all of them, I learned that there are several things to consider to make the revenue model effective and cost-efficient. Thus we had a meeting earlier to discuss how to make a revenue model. This involves gathering other target customers and their worries about the academic researches, finding laboratories, and many concerns.

I proceeded into watching the next video, which is about navigating the financial landscape for technopreneurs, and it's about the AirBNB's ideals of their services, presented by Mr. Luzmar "Bimbo" Gabor. 

He helped us understand how AirBNB presented their work from the advertising, to how they idealize their market size and objective, and how the end up with their revenue, as well as showing us how they find advantages against their competitors.

We managed to learn so much about the progress of AirBNB, and had another meeting again to have our presentation reworked for the next pitching.

As a member, I plan to improve our wireframe by utilizing FIGMA and be able to present our services better, as well as finally consider competitors and other methods the researchers use to utilize our strengths and weaknesses as a startup service to help everyone in need.

This is the wireframe presentation during midterm.

Hopefully we'll be able to serve better for the future resarchers.