Financial Model & Personal Burn Rate

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Last week, we calculated our personal burn rate and decided the product’s financial model. I am so surprised that I actually spend so much money every month when the tuition and insurance are also taken into account, I started to realized how expensive the lifestyle I am living right now.

As a team, we decided the possible ways we will be getting money from our product: Freemium model, Grants, Donation, Partnership.

# of Seniors in the US we estimated will pay for the Elev8 premium map yearly

Since the freemium model is the way we will be getting money from the customer directly. We did the funnel for just the estimated revenue through the Freemium model. After we finished making the funnel, we realized the reality that we need to face: The revenue gained directly through Freemium model may be the smallest of all the profits, and it can’t even meet one team member’s monthly expenses. This is so much different than I expect. I personally believe that if we really decide to run a startup company, there will be significant changes in our lifestyle.

Although we did so many reading on pricing the product and learned so many knowledge about it. When comes the problem to price our product, it is still difficult. It is not as simple as getting revenue, but also about the value of our product and how competitive we are in the market.

Next steps

• Improving our maps based on the feedback, and explore more locations to make the map.
• Explore more possible features that make our product stands out.
• Consider another possible way we can do to earn more profit through the map.