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An economics lesson for growing companies

Berkonomics

Growing companies usually require more working capital during their periods of rapid growth. If the equity value of a company is growing at the same rate as the company, say 40% per year, almost any form of debt financing may be preferable as a way of preventing further dilution from issuing additional equity.

Company 156
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How To Know It’s Time To Exit Your Company Gracefully

Startup Professionals Musings

The challenge is how to know and exit gracefully when the right time has come, without trauma to either the company or themselves. Warren Buffett and Rupert Murdoch clearly fall into this category. Accept change as a natural part of your transition, just as you always have for your company. Keep good company.

Company 164
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Recurring revenues: Oil or glue?

Berkonomics

Some types of businesses generate more and more recurring revenues over time, often growing to a size where recurring revenues pay all of the overhead of the company – an enviable position. There is a phenomenon I have observed time after time with mature companies receiving over 75% of their revenues from recurring sources.

Sales 296
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How much is that one additional unit worth?

Berkonomics

Let’s say that your company is exactly at breakeven. There is amazing leverage in high gross profit margins once a company is past breakeven. Every dollar of gross profit falls to the bottom line, increasing net profit faster with each transaction. Just to be fair, a 5% cut in costs would also double net profit.

.Net 156
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How big is your ocean? A lesson in TAM, SAM & SOM

Berkonomics

You, the lonely fisherman, must weave a net to catch your fish. Should your net be large and bulky, requiring more effort and expense to weave? Or should it be small and delicate, to catch those fish that would otherwise fall through the net? TAM, SAM & SOM? This lesson is important. .

.Net 156
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Super League Gaming Sees IPO, But Drops In Debut

socalTECH

in its initial trading, but falling more than 22 percent during the day to close down at $8.50 The company now trades on the Nasdaq as SLGG. The company reported in its S-1 that it had a net loss of $20.62M for the year ended December 31, 2018, on sales of $1.04M. Super League Gaming is led by President and CEO Ann Hand.

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Insights and Opinions: The Power of Just ONE More Unit

socalTECH

There is such leverage in high gross profit margins once a company is past breakeven. Every dollar of gross profit falls to the bottom line, increasing net profit faster with each transaction. Just to be fair, a 5% cut in costs would also double net profit. Thats impressive sales leverage. Continued.). READ MORE>>.

.Net 138