Remove Development Remove Finance Remove Fixed Costs Remove Price
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How Do I Start A Small Business?

Strategy Driven

The price fixation of your products. Describing the offerings of your services, the product life cycles, intellectual properties as well as the research and development procedures of your business. Accurately Evaluating Your Finances and Funding Your Business. Fixed Costs / (Average Price – Variable Costs) = Break-Even Point –.

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Business Plan Development: Know your Finances

Strategy Driven

Have columns for unit sales, unit costs, pricing, one that multiplies units times price to calculate sales, and one for sales costs. This allows you to demonstrate gross margin: sales revenue less sales costs. Develop a cash-flow statement. Create an expenses budget. The breakeven point.

Finance 10
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Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

Such a strategy limits an early venture's funding in order to force the business to develop a profitable business model and then invests heavily in growth once such a model is identified — Christensen terms such investments "good money" for incubating growth businesses and extols the strategy for three reasons.

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Is Rooftop Solar Finally Good Enough to Disrupt the Grid?

Harvard Business Review

The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay. This story of disruption should feel familiar.

Energy 8
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Does Your Startup Have a Spending Strategy?

Harvard Business Review

These spending choices require tradeoffs, so entrepreneurs must first develop a strategy for allocating limited resources across a wide range of available options. Colin was sure his revenues would exceed costs within a year, but the large clients he expected never materialized.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

In contrast, the capitalization of NOW, the former commerce unit of National Oilwell Varco, has been much less affected by the recent oil price collapse, which reflects the investor community’s confidence in the spin-off’s ability to prosper on its own. Does the business have a complete, balanced, and cohesive management team?

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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

Two companies transfer selected similar assets into a joint venture in order to support the orderly management of capacity in their industry and reduce the risk of prices spiraling downward. But on the other hand, in order to safeguard the company’s future competitiveness, CEOs may have no other choice than to invest now.