Other Frames Flashcards
VC: Profitability - Revenue
a. Revenue/unit (P)
b. # of units sold (Q)
Segment by:
- Product offerings / product line
- Distribution channel
- Region/geography
- Customer type (new/old, big/small, quick adopter)
- industry vertical
VC: Profitability - Costs
a. Variable (cost/unit)
- Either component parts such as import/export fees, credit card fees, delivery fees, raw materials/supplies, labor
- Or in value chain (raw materials -> factory/MNF -> distribution -> customers)
- Quantity
b. Fixed costs
- Either component parts such as payroll (e.g. headquarters), advertising, rent/mortage, property taxes, new MNF facility
- Or in value chain
Value chain steps - retail/MNF
Use for retail/MNF product
a. Raw materials
b. Factory/MNF
c. Distribution
d. Customer
Value chain steps - retail/MNF - services
Use for services
a. Logistics/operations (data, order processing, facility)
b. Marketing & Sales (sales team, promotion/advertising)
c. Service (Delivery, installation, repairs)
Fixed costs
Labor, advertising, rent/mortage, property taxes, new MNF facility, insurance, interest payment, utilities
Variable costs
Raw materials, labor, credit card fees, delivery/transportation fees, insurance, import taxes, service, coupons, fees (Groupon, ubereats, Amazon)
VC: Business situation framework
a. Customer
b. Product
c. Company
d. Competition
VC: Business framework - Customer
Note: could group together competition and customer under market)
Who is the customer?
a. Segments
- size/ % of market
- distribution channel preference (online, retail stores, B2B, B2C, drop ship)
- Trends
- Customer power/concentration (does one customer control all of demand?)
VC: Business framework - Product
Note: could group together product and business strengths/weaknesses under company)
a. Product benefits/intangibles/quality
b. Commodity or differentiable - how?
c. Substitutes (indirect and direct)
d. lifecycle (adoption, growth, maturity, decline)
e. Packaging - bundled product, potential changes
Tech
Warranty
Patent
Brand image
Efficacy
VC: Business framework - Company
a. Capabilities/expertise
b. Distribution channels used (online, retail stores, B2B, B2C - direct, drop ship - direct, salesforce, wholesaler)
c. Cost structure (fixed vs variable or value chain) or capital intensive vs not
d. Relationships with suppliers, mnf, distributors and end customers
e. Scalable - volume efficiencies
f. Flexibility/scopability (e.g.online offerings such as eBay, Amazon, ubereats)
VC: Business framework - Competition (or market)
Note: could group together competition and customer under market assessment
a. Industry competitiveness (monopoly, oligopoly, competitive - ms (market share) & concentration)
b. Competitive behaviors (target customer segments, products, pricing, distribution, brand loyalty)
c. Best practices (are they doing things we’re not?)
d. Barriers to entry (new entrants, tech, capital intensive, relationships, regulatory concerns)
Market sizing question types
1) Determine if product is used by:
- Population
- household
- indiviudaul
2) top down (population level) or bottom up approach
