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Business Plan Development: Know your Finances

Strategy Driven

It sets out what your new business will do, how you will overcome the challenges of starting up and, most important of all, how you will make money. But your start-up business plan is all just wishful thinking until you start filling in the financial figures. Set up a spreadsheet projecting sales over the first three years.

Finance 10
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A Detailed Look at E-Commerce Fulfillment

Strategy Driven

Our clients enjoy the freedom of not having to worry about setting up in house logistics at all and the bandwidth to expand their sales volumes. We help you to transform what would otherwise be a fixed cost (warehousing) into a variable cost of doing business. Benefits we afford our ecommerce partner businesses.

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Solving the $100,000 Cancer Drug Problem

Harvard Business Review

The key components that lead to a solution are as follows: Understand the dynamics of a high fixed cost/low variable cost industry. While pharma companies spend billions on research, the actual cost of manufacturing a treatment (such as a pill) is minimal. This cost structure enables pricing flexibility.

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How Companies Can Use Investors to Their Advantage

Harvard Business Review

He asked one former major investor for a reaction to the company’s prediction (accompanying poor quarterly results): “that the [current] market contraction will bottom out soon and our profits will improve.” Nikon could then follow up by asking what would persuade the investor to repurchase.

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Health Systems Need to Completely Reassess How They Manage Costs

Harvard Business Review

An investor-owned hospital executive whose company had acquired major nonprofit health care enterprises compared the proliferation of contracts to the growth of barnacles on the bottom of a freighter. The growth of these costs rivals those of specialty pharmaceuticals and the maintenance and updating of electronic health record systems.

Cost 10
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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

Driven by economies of scale, container ship size has been increasing for decades, with the largest ships now costing roughly $200 million. Building a large-scale biopharmaceutical facility requires up to $500 million. This setup provides company A with a steady dividend while allowing company B to reduce up-front capital outlays.

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The Customers Who Are Happy to Pay More for Less

Harvard Business Review

When marketers do change product sizes, it’s nearly always in one direction: up. It turns out that the smart strategy can be to do just the opposite. In his most recent book, Slim by Design , my co-author Brian Wansink suggests that up 57% of Americans would be willing to pay up to 15% more for portion-controlled items.