Overview

Hours for learning: 4

Aim:To support new and potential entrepreneurs in knowing the cost structure and the revenue streams of their business.

Learning Objectives:
- To improve the learners’ understanding of the importance of cost structure, revenue streams and the characteristics of them.

Introduction

The introduction describes the topics included in this chapter and already introduces an activity with the students, to already reflect on those topics. The question ‘For how much are you selling?’ forms the base for this introduction.

Example & brainstorm

This paragraph focuses on the cost structure and revenue stream. It also provides the different types and ways which are relevant for them.

Subquestions for learner

What questions to ask your students, which could be relevant in case of the ‘For how much are you selling?’ question? These are presented in this paragraph and are split into questions about: Cost structure, Revenue structure and Revenue Stream (How does the company make money from each customer segment).

Activating examples

In this paragraph only one example is provided, but it is quite a significant one. That of Google. It focuses on Google’s Cost structure and its Revenue Stream.

Social dimension

Here, there are questions provided for students on the social dimension of the ‘For how much are you selling?’ question. Before the questions there is a statement for the students and almost each question is accompanied by explanation or clarification.

Tools

Calculating your startup capital

This tool is an activity which will provide the learners with the possibility to calculate the needed capital for their own social start-up. The learners have to fill in a table for that, as if they already are starting a business.

Calculation break-even price

In this activity, the Break-Even Analysis is being explained. The students also get to calculate the fixed costs, the variable cost and there are more materials provided in this tool.

Finance option checklist

What are the financing options the students can consider when starting their own social business? What are their advantages and disadvantages? Introduce this information to your students with this activity.