One of the leading reasons startups do not succeed is a failure to clearly and realistically define their revenue drivers. Revenue drivers can be thought of as how money comes into the company. Ex. Revenue drivers for a theatre company often include ticket sales, donations, concession sales, educational programs, products sold, etc.
It is important to have multiple revenue drivers, as one or more may “dry up”, which can affect the financial health of an organization. If a business only has one revenue driver and it drys up, one may find themselves out of business. Other factors that may cause a drying up of a revenue include an economic shift (recession), causing peoples’ spending habits to change, competitors becoming increasingly competitive, a change of market trends, acts of war or terrorism, etc.
By having multiple revenue drivers designed into one’s business plan, the entrepreneur better ensures financial viability for the business.
Students learn to design multiple revenue drivers for their original entrepreneurial concept.
How to Play:
Following the ideation process, students analyze their business for potential revenue drivers. Once the entrepreneur has done so, they are divided into groups of three to four and each person takes turn sharing their proposed revenue drivers with the group. Each person in the group then gives their opinions on the effectiveness of such revenue drivers and others to consider.
In this game, students should consider what assets they have and how those assets might be used to generate income. Ex. Do you have a space that is not being used both mornings and evenings? Perhaps it can be rented to other businesses or for short-term use. For more information on asset use, see the game Dump Truck Full of Grapes.
If you would like to use these games in your own classroom, please do! If you do, let me know how how it goes and if you have suggestions for modifying a game.
I can be reached at email@example.com.
Designing Multiple Revenue Drivers by James David Hart is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.