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

Strategy Driven

What are the products and services you want to provide to your customers? Once these are completed, evaluate the following gradually; The Market Demand for your products and services. The price fixation of your products. Accurately Evaluating Your Finances and Funding Your Business. Preparing a Proper Idea.

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Contribution Margin: What It Is, How to Calculate It, and Why You Need It

Harvard Business Review

Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds costs. But if you want to understand how a specific product contributes to the company’s profit, you need to look at contribution margin. You might think of this as the portion of sales that helps to offset fixed costs.

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Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

First, when a business is impatient for profit, managers are forced to validate their assumptions and demonstrate that customers are fundamentally willing to pay an acceptable price for the company's offering. Secondly, expecting a business to be profitable quickly forces it to keep its fixed costs low.

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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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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

These conflicting pressures are especially present when the product provided by the asset is not very differentiating (think, for instance, of commodity steel products or container shipping services). The common idea behind these models is that the company does not have to be the (full) owner of the asset to be its (sole) operator.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

These preparatory steps are of particular importance for carve-outs that are not full-fledged business units with profit & loss responsibility, such as R&D centers or production units whose only customer is their parent. The outsiders provide new blood in support functions such as finance, legal, or administration.