Hi everyone! For those who are reading a blog of mine for the first time, my name is Freya Shah. I will be in Grade 10 come September at Woburn CI! This week, I had the opportunity to attend an extremely informative workshop with Raaj Chatterjee, and I am so excited to share my experience with everyone today!
Raaj is an extremely dedicated individual, who "always had his mind set on making a difference through technology." In his high school years, Raaj dedicated over 700 hours🤯 to clubs and "green-initiatives." Raaj is also the Founder and CEO of his company, MeaningfulWork. MeaningfulWork is an "online volunteer-matching platform connecting a community of skilled volunteers and nonprofits to build better impact."
Check out this link to learn more about the company!
"Make A Bigger Impact, On Purpose"
Throughout the webinar, I found there was an emphasis on trying out new things, as well as grabbing opportunities. Come to think about it, many of our speakers touched upon these two ideas, and I find that this may be because grabbing opportunities and trying new things are a primary way to build your career! An experience of Raaj's that I really found inspiring was how he grabbed an opportunity to help create a recycling robot for Apple! He explained how he didn't think he was qualified enough, and that others may have more experience than him, however, he still opened that new door! Do you ever feel as if other's know more than you, or that you don't know as much as you are credited for? Well, Raaj explained something called the Impostor Syndrome, which I find applicable to my life as well.
The impostor syndrome is something I can directly relate with, because I have found myself in many scenarios in which I start doubting myself, and thinking that I am not capable of a task. For example, I start hesitating when entering competitions in which I think others are “better” and more “up-to-the-task” than I am. However, after taking the chance and grabbing the opportunity, I come to realize that many others are thinking the same thing I am. Having room to grow is never a negative issue, yet I always realize that AFTER doubting myself in the beginning.
Before diving deep into the 7 steps of money modelling, Raaj went over some steps that allowed us to briefly understand how exactly the Money Model works. Essentially, he briefed the process we would be going over.
The first step was to start rough and refine with more information. This means that you do not need to have the entire model planned out in your head. On the contrary, you need to build off of a small idea, and conduct valuable research to solidify your plan.
Next, you need to develop and conduct a test/experiment to confirm that your plan is feasible and realistic. As per my thinking, I find that market trends are constantly changing and evolving. Due to this, you need to make sure that your model is compatible with the market and your consumers. To do this, you will need to predict, test, and validate your model before putting it into fully fledged action.
Lastly, one of the biggest steps is understanding that the art of storytelling is a key factor in selling your ideas. In order to promote, build, and advance your brand, you will need to be able to pitch yourself in an intriguing way that will build a sense of comfort and trust for your buyers and investors.
Now, to get into the 7 core steps of an effective money model.
Deconstruct a single transaction (Revenue, Direct Costs, Gross Margins) What’s your ability to make a profit in a single transaction and/or over a lifetime? The example that Raaj used throughout his Money Model workshop was a Premium Kombucha Company. For this step, Raaj had the costs broken down.
2. Repeatable Opportunity
This step means to make sure that the SINGLE TRANSACTION can be repeatable. Simply put, try making a plan in which consumers will return to your brand and increase profit more than once. An example of a repeatable opportunity would be giving out coupons or subscriptions to maintain customer loyalty and interaction.
3. Positive Earnings and Cash Flow.
This step focuses on the target market and potential customers. Raaj talked about three important subtopics within this topic, including TA<, SAM, and SOM.
TAM: Total Addressable Market
SAM: Serviceable Available Market
SOM: Serviceable Obtainable Market
TAM refers to the Total Addressable Market. When looking at TAM, you are analyzing demographic data in order to specify how many potential customers there are. As shown in the above diagram, TAM is the largest possible market for your brand.
SAM refers to the Serviceable Available Market. When looking at SAM, you are narrowing down the TAM through attributable filters such as age.