Thursday
May 5, 2016

# 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:
TOTAL - 200 clients

MONTH 2:
TOTAL - 310 clients

MONTH 3:
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