EXERCISE 6COST STRUCTURE OBJECTIVE

The objective of this exercise is for the participants to know their business’ cost structure.

Cost structures describe the most important costs incurred while operating under a particular business model. Creating and delivering value, maintaining Customer Relationships, and generating revenue all incur costs

Description

1. Ask the participants to visualize their COST STRUCTURES according to the future business by constructing it in play dough or other materials of their choice.

When they work with COST STRUCTURES these questions can guide their work:

• What are the most important costs in our business model?

• Which Key Resources are most expensive? Which Key Activities are most expensive?

2. When they are done ask them to show it to each other for constructive inputs and feedback and ask questions that will guide them in making a short write up on their key resources, which is put on the canvas.

Next Steps

This concludes the first 9 modules of our entrepreneurship model. The entrepreneurs should receive training on financial management and Marketing & Branding.

These trainings differ depending on your organisation’s way of engaging the entrepreneurs and the progress of the entrepreneurs.

BRANDING & MARKETING

- How to develop your brand

- How to market your product or service