What is it
Every business model is comprised of essentially five key models, which taken together, determine the economic viability of any business.
How we can help
- At BMA, we surgically look at each of these models to determine its viability to deliver value and sustainability for the future:
- Revenue model: who will buy, how often, how soon, at what cost, how much money will you receive?
- Gross Margin model: how much revenue will be left after you paid for the direct costs of what you sold? What is driving these results?
- Operating model: How much money are you allocating as fixed costs?, How much and why are you allocating to Marketing, Advertising, Administrative tasks, etc.
- Working capital model: how much inventory are you holding, is it enough or is it too much?; are you collecting your customer balances on time?; how long are you taking to pay your debtors?
- Investment model: how leveraged are you? Is it sustainable? Are you generating enough cash?