Here’s a detailed Business Model Document Template filled with sample placeholders and analysis steps. This is designed to help you build your own investor-ready business model section:
Business Model Document Template for Investor Package
1. Executive Summary of the Business Model
A mobile-first platform connecting homeowners with vetted local tradespeople. We generate revenue through a service fee, premium provider subscriptions, and rush booking surcharges. The model is scalable, with high gross margins and low fixed overhead per market.
2. Revenue Streams
| Revenue Stream | Description | % of Total Projected Revenue |
|---|---|---|
| Platform Service Fee | 10% commission per job completed | 65% |
| Premium Subscription | $29/month for visibility, analytics, and priority leads | 25% |
| Rush Job Fee | $5 surcharge by homeowners for urgent job postings | 10% |
To fill in: Estimate volumes of jobs, subscriber counts, and urgent bookings per month to project actual revenue.
3. Pricing Structure
- Homeowners: Free to post, $5 optional urgency fee.
- Providers: Free plan; $29/month premium plan with visibility and auto-matching tools.
To fill in: Benchmark pricing against competitors; validate user willingness to pay.
4. Customer Segments
| Segment | Description | Primary Need |
|---|---|---|
| Homeowners | Need trustworthy, fast access to services | Speed, trust, simplicity |
| Local Contractors | Need steady flow of new clients | Leads, job scheduling |
5. Acquisition Channels
| Channel | Approach | Est. CPA |
|---|---|---|
| Paid Ads | Facebook & Instagram ads targeting homeowners | $18 |
| Referral Program | User-to-user referral with $10 credit each | $8 |
| Retail Partnerships | Ads at hardware stores and community boards | TBD |
To fill in: Estimate CAC from early campaign tests or pilot user data.
6. Distribution Channels
- iOS and Android mobile apps
- Responsive web app
- Future API partnerships with scheduling software
7. Key Partners
- Stripe (payments)
- Twilio (SMS updates)
- Local unions and co-ops (provider sourcing)
- Possible insurance provider for job protection
8. Cost Structure
| Cost Item | Type | Monthly Estimate | Notes |
|---|---|---|---|
| Dev & Maintenance | Fixed | $18,000 | Two full-time devs |
| Marketing & Ads | Variable | $6,000 | For new user acquisition |
| Hosting, SaaS tools | Fixed | $2,500 | AWS, Twilio, Segment, etc. |
To fill in: Use quotes from service providers or pilot run budgets.
9. Unit Economics
| Metric | Placeholder Value |
|---|---|
| Avg Revenue per Job | $120 |
| Platform Cut | $12 |
| Customer Acquisition Cost | $18 |
| Gross Margin per Job | 80% |
| LTV (Provider Sub) | $87 (3-month avg) |
To analyze: Run your own model in Excel using these formulas:
- Gross margin = (revenue - variable costs) / revenue
- LTV = avg revenue per customer * retention period
10. Break-Even Estimate
- Monthly fixed cost: $26,500
- Contribution margin per job: $12
- Break-even volume: ~2,209 completed jobs/month
11. Visuals to Include
- Revenue stream pie chart
- CAC vs LTV bar graph
- Pricing plan tier diagram
- Funnel from ad click to job complete