Business model
State how the company makes money in one sentence, with one unit economics number that shows the model works.
Kawasaki's 10/20/30 rule allots a single slide to business model; on a 3-minute stage clock this compresses to roughly 10-15 seconds, just enough for a pricing sentence and a unit economics number.
- Pricing mechanism (per seat, per transaction, percentage fee)
- One unit economics number (margin, take rate, or LTV:CAC)
- How revenue scales with usage
- A full pricing tier table
- Hypothetical future revenue lines not yet live
- Comparisons to other companies' business models
- No pricing number is stated at all
- The monetization plan is 'we'll figure it out after we have users'
- The unit economics number contradicts the market size math from slide 2
- Describing the business model in the passive voice with no numbers
- Mixing up gross margin with revenue
- Spending stage time on future pricing experiments instead of the current model
- · Can I state my pricing mechanism and one margin number in a single breath?
- · Does this model match the market-size math I already showed?
We charge [pricing mechanism], at [margin/take rate], which scales with [usage driver].
"We monetize through a scalable, robust revenue model with multiple streams."
"Nimbus Payroll charges $8 per contractor payment, a 71% gross margin, and revenue scales directly with each customer's headcount."
One pricing number, one margin number, one scaling driver, said in a single sentence.
Quick quiz
1. What is the minimum an investor needs from the business model slide?
- ○ A five-year pricing roadmap
- ✓ The pricing mechanism and one unit economics number
- ○ A comparison to three competitors' pricing
- ○ A breakdown of every cost center
In a single-slide, 10-15 second window, only the pricing mechanism and one proof-of-margin number fit.
2. Which business model statement is strongest?
- ○ We have a robust, multi-pronged monetization strategy.
- ○ We plan to monetize once we reach scale.
- ✓ We charge $8 per contractor payment at a 71% gross margin.
- ○ Our pricing is competitive with industry standards.
It states the exact price, the unit it's charged on, and the margin.