Wednesday
April 23, 2014

Homework Help: Growth model

Posted by Pete on Sunday, August 9, 2009 at 5:41am.

Hello everyone.
My task is to build a growth model for a company. The company offers services to businesses - and thus allowing the businesses to recruit new clients.
Assumptions:
- I started working with 10 businesses
- A business I start working with initially has 20 clients
- I'm recruiting 3 new businesses every month
- A businesses which is using my services will get 5 new client after every month of service (if he started getting my service on July 1st then on August 1st he will have 5 new clients)

I need to build a formula to calculate how much clients and how much businesses there will be in 6 months.

Here is how I started calculating manually:

MONTH 1:
10 (type A) businesses
20 clients (per business)
TOTAL - 10 businesses
TOTAL - 200 clients

MONTH 2:
10 (type A)businesses
25 clients (per business)
3 (type B) businesses
20 clients (per business)
TOTAL - 13 businesses
TOTAL - 310 clients

MONTH 3:
10 (type A)businesses
30 clients (per business)
3 (type B)businesses
25 clients (per business)
3 (type C) businesses
20 clients (per business)
TOTAL - 16 businesses
TOTAL - 435 clients

etc...


I need these to be variables that can be changed:
- number of businesses I started with
- how much new businesses I find every month
- how much new clients a businesses recruits after working a month with me
- how much clients a businesses initially has

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