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Medialย โขย 1y
Gross margin is crucial for startups - but what is it exactly? ( Let's Discuss How You Consider Gross Margin ) Gross margin represents the percentage of revenue left after paying for direct costs associated with producing goods or services. It's calculated by subtracting cost of goods sold (COGS) from total revenue and dividing by revenue. For startups focused on SaaS or services, COGS may include infrastructure costs, developer salaries, contractor fees. For e-commerce, it's the cost to obtain or manufacture inventory. Higher gross margins mean more revenue goes toward core operations and growth rather than direct expenses. But how high is considered healthy? Target 50-60% minimum for most B2B SaaS. Focus on efficient operations and pricing power. Monthly tweaks to gross margin help course correct. Transform revenue vanity metrics into profitable reality. What's your gross margin telling you?
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Gross Margin โ The Real Measure of Your Startupโs Health Revenue looks exciting. But how much do you actually keep after delivering your product? Thatโs where gross margin comes in โ and it decides whether youโre running a business or a charity. Br
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๐ฐLearn Start-up Maths โ( Concept - 2 )๐ ๐ฑ All details about โ COST โ Whenever someone asks you about the cost just tell him that โ Cost the amount of money that a business spends on the creation of something โ โข There are many types of cost #
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Mastering Unit Economics Unit economics isnโt just a metricโitโs your startupโs financial DNA. It reveals whether each customer adds value or drains cash. Hereโs how to build your unit economics from scratch: 1. Define Your Economic Unit What drives
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YouTubeย โขย 1y
The ABCs of Entrepreneurship and Businesses #Day 2 7. Accounts Receivable: Amounts owed to a business by customers for goods/services on credit. 8. Accounts Payable: Amounts owed by a business to suppliers/creditors for purchases on credit. 9. Gro
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Day 2 Business Terms 1. CAC (Customer Acquisition Cost) โ "If you spend โน10,000 to get 10 customers, your CAC is โน1,000. Keep it lower than your Customer Lifetime Value (CLV) to stay profitable!" 2. Gross Margin vs. Net Margin โ "Selling a burger
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Day 4 Business Terms Contribution Margin โ The Profit Clue Most Businesses Ignore Most founders talk about revenue and profitโฆ but ignore what really drives profitability: Contribution Margin. What is it? Contribution Margin = Revenue โ Variable C
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โ Must for Business Students ๐ฅ10 Most Important metrics that are asked by investors. 1. Revenue Growth Rate 2. Monthly Recurring Revenue (MRR) 3. Burn Rate 4. Cash Runway 5. Gross Margin 6. Customer Acquisition Cost (CAC) 7. Customer Lifetime Val
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