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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. Breakdown: 1️⃣ Gross Margin = (Revenue - Cost of Goods Sold) / Revenue It tells you how profitable your core operations are. 2️⃣ Example: You sell a product for ₹1,000 Your cost to deliver it (COGS) is ₹600 Gross Margin = (1,000 - 600) / 1,000 = 40% 3️⃣ SaaS? Expect 70–90% gross margins D2C? Healthy = 50%+ Marketplace? Lower, but scalable Why it matters: High revenue with low margins = fake success. You might be growing, but your profits aren’t. The trap: Founders often spend more on growth than they make in gross profit. That’s how unicorns bleed. Quick tip: Before scaling, ask — can I afford to fulfill 10x orders without margin collapse? 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗶𝘀 𝘁𝗵𝗲 𝘁𝗼𝗽 𝗹𝗶𝗻𝗲. 𝗠𝗮𝗿𝗴𝗶𝗻 𝗶𝘀 𝘁𝗵𝗲 𝗺𝗲𝗮𝘁.
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