Revenue model: price x volume • Cost structure: direct costs, indirect costs, economies of scale. Cost structure will be predominantly driven by the cost of the key resources required by the business model. • Margin model: given the expected volume and cost structure, the contribution needed from each transaction to achieve desired profits. • Resource velocity: how fast we need to turn over inventory, fixed assets, and other assets—and, overall, how well we need to utilize resources—to support our expected volume and achieve our anticipated profits.
