article thumbnail

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. Turning Net Promoters Into Net Profits. Shots On Goal.

.Net 168
article thumbnail

How much is that one additional unit worth?

Berkonomics

Most college econ courses teach marginal economics. 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. Getting to breakeven, allows us to at least double our net profit with the next unit sold.

.Net 156
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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. Turning Net Promoters Into Net Profits. Shots On Goal.

.Net 182
article thumbnail

A heartbreaking story about time and money.

Berkonomics

Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. There is an art to efficient management of a process, whether that is the process of bringing a product to market from R&D to production or developing a new product’s launch program.

article thumbnail

I sat in my own safety net while weaving it.

Berkonomics

500 entrepreneur, after years as a senior marketing manager of a large computer company. Of course it wasn’t just one event that was the cause, as you might guess. Or as one of the richest guys in the world is quoted as saying, “A real entrepreneur is somebody who has no safety net underneath him.”. By Berni Jubb.

.Net 120
article thumbnail

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Gross Burn vs. Net Burn. Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it Net burn is the amount of money you are losing per month. I often see companies burning $100,000 per month (net) looking to raise $6-8 million.

Startup 383
article thumbnail

What Do LPs Think of the Venture Capital Markets for 2016?

Both Sides of the Table

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. In fact, if you add the capital flows of the past ten years, there have been just shy of $50 billion in net cash outlays.