Business Model Canvas
What does Content Hearts do?
Was Content Hearts profitable after 1 year of operations?
Yes
Can a start-up with no revenue afford to hire Content Hearts?
No
Should Content Hearts scale further?
Yes
Should Content Hearts increase the price of it's product?
Yes, to $4,200
What differentiates Content Hearts from other agencies?
It is branding-focused
Is Content Heart's pricing below or above the industry average?
Below, the industry average is $4,200
Which type of company is most likely to afford Content Hearts’ $4,000 monthly package?
growth stage companies
Should Content Hearts pursue a low-risk or high-risk growth strategy in the near term?
low-risk
To which country should it expand to as it scales in the longer term?
Indonesia
Which key resource is central to Content Heart?
Grace's 15 years of industry experience
Elastic - perceived as substitutable by in-house marketing teams
What is the average % spent by companies on marketing/advertising?
10%
Why should they expand their team?
To increase the number of clients they can take, thus increasing profitability
What additional offering should Content Hearts offer in the near-term?
Option to top-up to base package
What is the existing range of pricing for the different tiers of subscriptions?
4,000-6,000
What is the strategic benefit of introducing “top-up” packages to fixed service tiers?
Allows to increase revenue per client without increasing variable wage cost significantly
What is the monthly revenue Content Heart's ideal client should have?
$80,000-150,000
What additional benefits are provided if Grace hires another senior person?
Improve internal control
What are the three case study companies we mentioned?
Vera Content, Bookmark, McCann
What are Content Heart's main cost drivers?
Wages, Rental and Accounting Costs
What enables Content Hearts to increase its profit margins as it scales?
Economies of Scale
Why is Advertising Elasticity of Demand important to Content Hearts?
It helps them determine which industries are more likely to demand marketing/advertising services
How did we include the assumption that Content Hearts needs to hire 5 employees for every 10 clients into the CVP curve?
Embedded wage costs into fixed costs
What are the 3 key long-term objectives?
1. Introduce new products and services
2. Invest in technology
3. Establish partnerships in Indonesia