Interview with Sramana Mitra on 1M/1M Program

Rajesh Setty

Once the $1 million revenue milestone is crossed, entrepreneurs find it easier to find additional customers, manage working capital, and access funding, whether it is credit or equity. In my roundtables, the vast majority of entrepreneurs I work with are in this rather vulnerable pre $1 million revenue stage. Over the course of 2010, the work did gain momentum, and we were joined by many of our readers from around the world who decided to make this resolution their own.

Your Whole Company Needs to Be Distinctive, Not Just Your Product

Harvard Business

Ever since the idea of strategy came to the business world in the early 1960s, the goal of differentiation has been paramount. As business strategists, we see endless amounts of writing about how to achieve differentiation. The problem starts with the way many business people think about differentiation. It became easier and easier for small enterprises to gain customer reach and awareness (along with working capital).

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What to Know Before You Sign a Payment-by-Results Contract

Harvard Business

The concept is fairly straightforward: The parties define the result up front, agree on a baseline, work out how confident the organization is in delivering the result, and then specify the expectation and payment in the contract. recently announced that its members are committing to transform 75% of their contracts into pay-for-performance models by 2020. When PbR Doesn’t Work. Making PbR Work. Business models Pricing Customer service Digital Article

What Netflix and Starbucks Know About Cash Flow

Harvard Business Review

business ended 2014 with 39.1 Converting consumer certainty into consumer cash flow is a key part of making money from digital business models, many of which use subscription models. Making Money with Digital Business Models. Improving cash flow is extraordinarily healthy for any business. This allows you to better manage operating and capital expenses. It can also improve working capital. Business models Internet

Creating Michelin-star Quality for the Masses

Harvard Business Review

At least one Italian entrepreneur is showing that it's possible to meet both criteria in an intensely competitive business: Italian food and wine. In Italy, as in the rest of Europe, the up-market restaurant business is a tough one. Capital investment and operating expenses are high because cooking equipment and raw materials must be the best: wines devour working capital, the kitchen and serving staff must be paid handsomely, and crystal glasses and crockery will break.

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Best Buy Can't Match Amazon's Prices, and Shouldn't Try

Harvard Business Review

In this month's HBR, Professor Clayton Christensen and I have an article that describes how to develop core business strategy in the face of disruption. The article, " Surviving Disruption ," represents our first attempt in two decades to outline the other side of disruption — how to manage legacy businesses. To survive disruption, managers of legacy businesses need to change the game. As an example, think about why both consumers and businesses turn to Best Buy today.

We Can’t Study Short-Termism Without the Right Metrics

Harvard Business

For instance, McKinsey considered a smaller ratio of capital expenditure to depreciation to indicate short-term thinking, because it’s assumed that short-term companies will invest less, and less consistently, than other companies. Repaying such profits to shareholders through share repurchases is better than misinvesting that cash to diversify into unrelated businesses in which management has no expertise or overinvesting in projects that may not return cost of capital.

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Telecom's Competitive Solution: Outsourcing?

Harvard Business Review

Due to huge capital requirements, these investments could exert considerable pressure on the working capital of the carrier company. telecoms are classified as a high technology industry: "Network is their business." Bharti's innovative business model converted fixed costs in capital expenditure to a variable cost based on usage of capacity. Global business India Technology

To Grow, Social Enterprises Must Play by Business Rules

Harvard Business Review

Normal business complexity sets in. They lack customer insights that would help tune their business model to attract more customers. Their business plans often betray a misunderstanding of how scale generates financial returns. They need new executive talent, infusions of capital, and systems capable of supporting an expanding organization. Hoping to fill this need, my firm, Bain & Company and six other partners founded Social Business Trust (SBT) in the U.K.

My First, Failed Foray into Venture Investing

Harvard Business Review

In fact, a personal dream I have been pursuing for several years is to invest in the dreams of others, not only through my words, my expertise, my connections, but also my capital. But because we failed to hammer out exactly how we would operate (including our respective roles and responsibilities), infighting distracted from operating, cash became a concern, and the business slowly, then quickly, imploded. If the business worked, we had less upside.