Financial viability refers to a company's ability to generate the required cash flow to fulfil ongoing operational costs and debt repayments. It is also its ability to continue growing at the desired rate while still meeting customer expectations through high performance.
The financial viability area is located in the lower part of the business model canvas (see Figure 5). It focuses on the money a value proposition costs versus what it generates as a revenue. Therefore, the financial viability is composed of two elements: revenue streams and cost structure.
The financial viability area is located in the lower part of the business model canvas (see Figure 5). It focuses on the money a value proposition costs versus what it generates as a revenue. Therefore, the financial viability is composed of two elements: revenue streams and cost structure.
The purpose of evaluating the financial viability is to first evaluate whether the business model is viable or not and, second to detect those risky assumptions that could be easily targeted as part of a product discovery process.
What is financial viability? Financial viability refers to a company's ability to generate the required cash flow to fulfil ongoing operational costs and debt repayments. It is also its ability to continue growing at the desired rate while still meeting customer expectations through high performance.
