The Changing Gross Margin ─ In the physical product world, that I call touch and feel it has been established that the gross margin equals the revenue minus the cost of manufacturing Margins at 40% are good. In the software market, margins above 90% can be found...
Breakeven ─ Every company should have an understanding of its financial numbers that are required for survival. This would be operating at just a sales level for zero profit and the is referred to the Breakeven point.
The Investor Mentality ─ Each category of investor has a different agenda. Here are my perceptions of debtors and investors, which I hope will help approach the task of raising capital more knowledgeably.
Money Really Doesn’t Grow on Trees ─ Growth from zero revenue or accelerating present growth rates requires capital, and the higher the revenue growth desired, the more cash is required to support it.
Mentors ─ The way I see it, a coach expands a person’s role, like helping someone in marketing to get better at marketing, but mentoring will expand the person’s role from one dimension to being an entrepreneur and running a company.
Turnarounds ─ One of my disappointments being an angel investor for several years, as part of a group, was when I believed there were some occasions, when the group gave up too soon on a company. The action was there was no desire to put more money into the struggling...