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PRATHAM
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Medial • 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?

0 replies4 likes

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mg

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Gross Margin – The Real Measure of Your Startup’s Health Revenue looks exciting. But how much do you actually keep after delivering your product? That’s where gross margin comes in — and it decides whether you’re running a business or a charity. Br

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SHIV DIXIT

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Vivek Joshi

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Harshavardhan
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YouTube • 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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Ronak Patel

Here you go! • 11m

Wth is CM1, CM2???? CM - Contribution Margin Contribution margin is the selling price per unit minus the variable cost per unit. CM1 = Contribution margin one= selling price- material costs - logistics costs. CM2= Contribution margin two= sellin

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Karunakar

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Revenue, Costs, and Profit: The Foundation of Business When running a business, understanding how money flows is crucial. The three essential elements are: Revenue: The total income from selling goods or services. Costs: Expenses incurred to operate

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Amanat Prakash

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Day 2 Business Terms 1. CAC (Customer Acquisition Cost) – "If you spend ₹10,000 to get 10 customers, your CAC is ₹1,000. Keep it lower than your Customer Lifetime Value (CLV) to stay profitable!" 2. Gross Margin vs. Net Margin – "Selling a burger

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Amanat Prakash

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Day 4 Business Terms Contribution Margin – The Profit Clue Most Businesses Ignore Most founders talk about revenue and profit… but ignore what really drives profitability: Contribution Margin. What is it? Contribution Margin = Revenue – Variable C

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Swapnil gupta

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✅ Must for Business Students 🥇10 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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