SHARE: RECIPE #8 - Food For Good Club

BUSINESS MODELS AND FINACES

INGREDIENTS

Presentation (Slides 82- 88)
Financial Sheet Template
Process Sheet
Video platform link (if online)

Purpose/Goal

To help participants understand business models, create a basic budget, and develop a financial plan for project implementation.

Desired Outcomes

Participants develop a potential business model, create a simple budget, and gain a clear understanding of costs.

Serving size:

one group of 2 to 5 people

Preparation time:

10 minutes

Cooking time:

50 minutes

INSTURCTIONS

STEP 1: DEFINE A BUSINESS MODEL (5 MIN)

Begin by explaining that a business model outlines how a business makes money by addressing key questions: What are you selling? How are you selling it? To whom are you selling it? What are your project costs?

Provide examples of various business models to showcase different models:

Subscription Model: Cooking classes offered online as a monthly subscription.
Product Sales Model: Selling homemade spice mixes or meal kits.
Workshop Model: Hands-on cooking workshops that charge participants a fee.
Multi-Stream Model: Generating revenue through in-person workshops, online classes, recipe books, and branded merchandise.
Sharing Platform Model: Cars shared through an app for short-term use by multiple users.
Resource Recovery Model: Old clothing collected and turned into new textiles for production.
Circular Supply Chain Model: Packaging made entirely from compostable or recycled materials.
Product Life Extension Model: Electronics repaired and resold to extend usability.
Modular Design Model: Smartphones designed with replaceable parts for easy upgrades.
Circular Economy model: A food delivery service that uses compostable packaging and repurposes food waste into new meals.

STEP 2: EXAMPLE - COOKING WORKSHOP BUSINESS MODEL (5 MIN)

Walk participants through a Cooking Workshop Business Model to show how to outline costs and revenue:

Revenue Sources: Selling tickets for cooking workshops, offering virtual classes, selling recipe ebooks, and renting equipment for events.
Expenses: Ingredients, venue rental, utilities, marketing, and chef/staff salaries.

As you discuss each part, fill in a sample Financial Sheet with the relevant details to model the process.

STEP 3: BUILDING A FINANCIAL PLAN: FINANCIAL SHEET EXCERCISE (20 MIN)

Ask each team to fill in the Financial Sheet for their own project.

List of Expenses: Ingredients, venue rental, staff fees, utilities, equipment, and marketing costs.

Revenue Streams: Different ways they plan to generate income with their product or service (workshop tickets, online classes, or branded recipe books, donations).

Teams should also estimate the price of their workshop, class, or product and calculate approximate revenue based on expected attendance or sales.

STEP 4: PRESENTING AND REFINING THE BUSINESS MODEL (20 MIN)

Invite each team to briefly present their business model and budget to the group.

Encourage participants to provide feedback, ask questions, and consider alternative revenue streams or cost-saving options. Share details about different sources of financing like fundraising, investment, sales, donation.

Tips & Tricks

Examples like the Cooking Workshop make it easier for participants to understand financial concepts.
Thinking about sustainability and sustainable business models is important for the future of the business.
Creating an open space for feedback allows participants to refine and strengthen their ideas.
Use eco-friendly business model strategies, such as using local ingredients.
MENTORING SESSION: This is a great time to conduct the mentoring session. Following the workshop you can conduct a mentoring session where teams receive valuable feedback from their mentors on their idea, value proposition statement, and customer persona.