Assignment #6:Costs

The Idea:Create an online platform for renters and landlords monthly payment.

Per Unit Revenue Vs. Cost:

$80 a year fee per landlord plus 5% commission per transaction.

Revenue per unit: $80

Unit = Landlord (Customer). Estimated landlords in the first year: 50

Revenue Per Unit:

Platform creation: $2.500 Outsourced tasks: $500 Material costs: $250 Cost per unit: ($2.500 + $500 +

$250) / 50 customers = $65

Cost Per Unit:

$80 > $65There Is Profit!

Calculated Costs:

GoDaddy.com Hosting:$4 monthly

GoDaddy.com Domain:$11 yearly

Platform Creation:$2.500 one time pay

Outsourced tasks:$500 yearly

Fixed costs.

Bank transaction commission:2% of the transaction value

Variable cost.

Calculated Costs:

No EmployeesUntil we achieve market fit we

will make all the necessary work.

No OfficeUnnecessary physical space. By now, we can work from

home.

As Lean As Possible!

Free MentorshipNo consultants. We have

great mentors we can refer and learn.

Viable Business Model?:

5 Customers Needed

For BreakevenThe numbers indicate that it’s a viable business model. The technology is already invented and the need exists.

Other Possible Revenue Channels:

Although we have a viable business model, we could also test other revenue channels such as:

Partnership allies.

Real estate advertisement.

Rent the platform.

COMING SOON