Part 6 · The H-BMC Blocks
Financial
Financial Model and Investment Case
13
Cost Structure
Financial Block — What It Costs to Operate the Model
13
Cost Structure
Financial Block — What It Costs to Operate the Model
Read This First
Cost Structure defines what it takes to deliver your value proposition and operate your business. It reflects the real resources, activities, and constraints required to make the model work in practice.
Key Elements of Cost Structure
Fixed Costs
Core expenses that remain relatively stable regardless of volume, such as salaries, infrastructure, and regulatory overhead.
Variable Costs
Costs that scale with usage, including delivery, manufacturing, and support.
Customer Acquisition
The cost of reaching and converting users or buyers.
Development & Regulatory
Investment required to build, validate, and maintain the solution.
Operational Delivery
Ongoing costs required to deliver the solution in practice.
Partnership Costs
Payments to external partners that enable delivery.
14
Revenue Stream
Financial Block — How the Business Makes Money
14
Revenue Stream
Financial Block — How the Business Makes Money
Revenue Stream defines how your solution generates income at scale, including pricing, payment structure, and volume assumptions.
15
Investor Economics
Financial Block — Margin, Unit Economics, and Return Potential
15
Investor Economics
Financial Block — Margin, Unit Economics, and Return Potential
Investor Economics synthesizes the model into a fundable narrative, demonstrating whether the business can scale efficiently and generate attractive returns.
Return to: