How to calculate the profitability of a startup?

[suchona.kani.z]

Set up a business model
Determine how you want to reach your target audience. Maybe a Facebook and Instagram page will suffice, maybe it will be a blog, PPC or mailing. Choose according to the target group, the persona of your typical customer and their habits.

Create a calculation for three scenarios – that everything goes extremely well, that everything goes averagely, and that everything goes extremely badly.

Market potential infographic

Sample model

Startups calculate backwards . So first you have to find out how many products need to be sold for the startup to make money. Then you calculate how many users you need to attract and prepare sales and marketing channels. It always depends on the specifics of the project, there are also startups that do not make money and their goal is to sell an idea or technology to a large company.

"Startups generally don't have any sales or conversion numbers. But job seekers database they can rely on general or average numbers. In my experience, the average e-shop has a conversion rate of about 1% - that is, one in 100 visitors makes a purchase," says Daniel.

How does the web and online marketing fit into this?
There is a difference between whether a company has been operating offline and is entering the online environment or is just about to start a business and will be exclusively online. Similarly, the role of an e-shop , performance-oriented websites , and brand pages, which are essentially a business card, differs.

“You need to determine what goals the website and online marketing should achieve and proceed accordingly,” explains Daniel. Of course, this method is not a foolproof method. It gives you a certain idea of ​​the project and the basis for further development planning.

Daniel gave a lecture on this topic at the Entrepreneurship Week Summit , you can find his lecture here: