Long-term impact requires a robust business model that is able to deliver both profits and impact. Of course, at an early-stage, we do not expect a company to be profitable. To justify an investment, however, the impact entrepreneur must be able to articulate his or her current business model and path to profitability and sustainable impact. The entrepreneur should be able to answer the following questions:
• What are your unit costs and target margins?
• What key costs and/or assumptions drive these margins?
• Of these, which are most volatile or uncertain?
• How do these costs and margins change with company’s growth?