Module 06 · The demo day pitch~12s dwell · weight 6
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.
Include
- Pricing mechanism (per seat, per transaction, percentage fee)
- One unit economics number (margin, take rate, or LTV:CAC)
- How revenue scales with usage
Cut
- A full pricing tier table
- Hypothetical future revenue lines not yet live
- Comparisons to other companies' business models
Red flags a reader notices
- 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
Pitfalls behind them
- 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
60-second self-test
- · 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?
Template
We charge [pricing mechanism], at [margin/take rate], which scales with [usage driver].
Weak
"We monetize through a scalable, robust revenue model with multiple streams."
Strong
"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
Pick an answer. Nothing is graded, and correct answers stay hidden until you choose.
1. What is the minimum an investor needs from the business model slide?
2. Which business model statement is strongest?