🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥

News

Messages

Try our Valuation Calculator →

Back

mg

mysterious guy • 1m

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.

1 Reply

Replies (1)

Greg

👤 • 1m

Even though making lots of money from each sale is important, sometimes you need to spend more upfront to get big fast. If you only care about high margins at the start, you might miss your chance to get lots of customers or beat your rivals. So, a lower profit per sale can be okay if it helps your business grow huge in the long run

Recommendations from Medial

PRATHAM
•

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 ca

Amanat Prakash

Building xces • 3m

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

Aniket Kandolkar

Founder • 12m

What is your profile margin or desirable profit margins? Wan known mine then comment below.

mg

mysterious guy • 1m

CAC vs LTV – The Unit Economics Every Founder Must Know You’re getting users. You’re spending on ads. But is your startup actually making money per customer? If your CAC is higher than your LTV, you’re not building a business — you’re burning cash.

2 Replies

Vivek Joshi

Director & CEO @ Exc... • 1m

Mastering Unit Economics Unit economics isn’t just a metric—it’s your startup’s financial DNA. It reveals whether each customer adds value or drains cash. Here’s how to build your unit economics from scratch: 1. Define Your Economic Unit What drives

Nimesh Pinnamaneni

Making synthetic DNA... • 3m

🚨 The magic number: ₹800 Cr ⸻ VCs invest in businesses that can be big enough to return their entire fund. To get VCs interested, your startup must at least have the potential to reach ₹800 Cr+ in annual revenue or ₹8,000 Cr+ in market cap (assumi

Hansraj Lohana

Future of the Future • 3m

What're your views for brands like Ariro toys? Wooden toys for kids. As we all know the more money and great gross margin only be achievable in kids niche. What are your thoughts? O

Amanat Prakash

Building xces • 3m

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

Yash Barnwal

Gareeb Investor • 9m

AMD generate revenue across various sectors, including Data Center ($1.6B), Client ($1.5B), Gaming ($1.5B), and Embedded ($1.2B). With total revenue of $5.8B, AMD achieves a gross profit of $2.7B and a net profit of $0.3B (5% margin). Key expenses in

7 Replies

Swapnil gupta

Founder startupsunio... • 1m

✅ 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

2 Replies