As we develop the financial model and related discussions, I find that it’s best to have a business concept in mind. In the past, I’ve tried web/internet apps, services companies, retail stores, and other business models. Retail stores are the best because it is the easiest to picture in your mind as you think about the money flow.
So we’re going to base our discussion on a fictional bike shop – Sophie’s Bike Shop.
Sophie’s Bike Shop sells bikes (duh!) for adults and children, accessories and parts, and they also have a services component (tune ups, repairs, etc.).
With all that in your mind, let’s get to work.