We had the pleasure of having Graham speak to us about building a business. His focus was on how to develop a business model canvas. We went through the process during a demonstration. I was not familiar with this practice and was skeptical at first. Once he explained its usefulness and we began filling it out I saw that it could be a very powerful tool for evaluating your business.
The part of the demonstration that I found most useful was evaluating where your money is coming from and where you cost is. When you try and break that down it gives you a great sense of how difficult it will be to make significant profit. I know it sounds simple but simply thinking about cost/revenue and actually trying to write down what it will be are two very different things.
He also gave some advice that really stuck with me, he said that everyone underestimates their cost and overestimates their profit. That is something I will certainly keep in mind.
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