Business Model Thinking
A product without a business model is a hobby. Every design decision has a cost structure; make it visible before it becomes technical debt.
1. Identify the revenue model
How does money flow? SaaS subscription, usage-based, marketplace commission, freemium, one-time purchase, advertising, data licensing. Name the model explicitly.
2. Map the cost structure
Outline infrastructure, personnel, third-party services, and customer acquisition. Order of magnitude is enough; precision comes later.
3. Sketch unit economics
Calculate what one customer costs to acquire (CAC) and what they generate (LTV). Even rough estimates surface unviable models early.
4. Evaluate pricing strategy
Determine who pays: per-seat, per-usage, tiered? Establish the anchor price in the market.
5. Assess scalability
Does the model scale linearly (more customers = proportional cost) or with leverage (more customers ≈ same cost)? Flag models that don't scale.
Completion Criteria
Done when the business model brief completely articulates the revenue flow, cost assumptions, and unit economic realities.
Output Format
Business Model Brief covering revenue model, cost structure, unit economics sketch, pricing rationale, and scalability assessment.
Anti-patterns
- Building features that increase cost without a corresponding revenue path.
- Deferring "how we make money" until after launch.