When you are formulating the business model of your startup. The factors that need to be kept in mind are as follow.

The core of your startup i.e. Idea when you are formulating the idea the factor important is that your idea should generate revenue, so for generating revenue you need to have business model. So what’s business model, in simple terms it’s the way you do business to generate revenue for example a retail shop business model is to sell goods at retail prices after buying from whole sellers, so the difference is the revenue or the margin. The business model is business to consumers.

So when you are formulating your idea the business model is the first factor that you need to consider, once this is over then comes the various factors of what’s the margin if its product selling, if its selling then what’s the price of your service so while ascertaining the pricing do calculate every component that is going to cost in the process of providing service and above that price is what needs to be quoted to customers.

The pricing strategy is based on three types on par, below par and above present pricing. It looks very simple but this can play vital role in the type of strategy you want to enter the market for customer acquisition.

The above strategy will let you now the time you will take to recover if you are selling below par pricing, on par and above par this will help you in formulating your cash flow and sales forecast accordingly.