Profitability Metrics
These are the stages of profitability every founder should be familiar with (Refer the table below)
In the beginning, Start with Contribution margin (CM)- measure if your revenue covers variable costs.
Next, target transacti
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Anonymous 3
Stealth • 3m
Achieving profitability at the transaction level was a huge milestone for us. Once you’re there, every sale adds value and keeps cash flow positive. Highly recommend founders prioritize this stage
0 replies1 like
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Today's topic is EBITDA, Gross Margin and Operationally Positive terms:
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) - > 🤑
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