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A Startup’s Net Profit Score Is More Important Than Its Net Promoter Score

InfoChachkie

As crazy as this scenario sounds, it is very similar to the “scoring process” companies engage in when they track Net Promoter Scores. Net Promoter Scores (NPS) are the darling of many Big Dumb Company (BDC) product marketing and customer support executives. A Net Promoter Score of 10 and a bank account of 0 equal a failed venture.

.Net 182
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A Startup’s Net Profit Score Is More Important Than Its Net Promoter Score

InfoChachkie

As crazy as this scenario sounds, it is very similar to the “scoring process” companies engage in when they track Net Promoter Scores. Net Promoter Scores (NPS) are the darling of many Big Dumb Company (BDC) product marketing and customer support executives. A Net Promoter Score of 10 and a bank account of 0 equal a failed venture.

.Net 168
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Mindspeed Gets $5.3M In Patent Sale

socalTECH

Specific details on the sale and the buyer of the patents was not disclosed by the company. The firm said the new sale comes on top of a previously announced, $10.0M patent sale it announced in July. Mindspeed said the patent sales puts the firm in its "strongest net cash position in over five years." READ MORE>>.

Patents 153
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NextWave Complete PacketVideo Sale

socalTECH

San Diego-based NextWave Wireless said Friday that it has completed the sale of its 65 percent equity interest in PacketVideo. The firm said the sale, to NTT DOCOMO , was worth $111.6M. NextWave Wireless said it will result in net cash proceeds of $106.5M from the sale. NextWave had announced the sale in August.

Sales 140
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Demand Media Nets $77.2M From IPO

socalTECH

in net proceeds from the firm's IPO last week. The firm, which debuted on the NYSE as DMD, said it will use the new funding for investments in content, international expansion, working capital, product development, sales and marketing activities, general and administrative matters and capital expenditures.

.Net 145
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THQ Seeks Buyer As Sales Slip

socalTECH

The announcement came as the firm announced net sales of $107.4M The firm also reported a net loss of $21.0M. The firm said it hired Centerview Partners to help evaluate "strategic and financing alternatives". in revenues.

THQ 147
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Should Startups Focus on Profitability or Not?

Both Sides of the Table

The most obvious way to explain this is with sales people. If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. “COGS” represents the amount that each sale costs you.

Startup 418