Built on a transaction cost economics (TCE) perspective, this study investigates whether startups' early growth prompts them to relocate to a new place, and, if so, how long-distance versus short-distance choices affect their post-relocation performance in the market. The empirical findings ...
As the leading CPA firm serving VC-backed startups, we are acutely aware of the trends in startup funding - including valuation trends.
We greatly prefer something new to somethingderivative. Most really big companies start with something fundamentally new (one acceptable definition of new is 10x better.) If there are ten other companies starting at the same time with the same plan, and it sounds a whole lot like something that...
because they carry a very real social cost. An intro isn’t just an email; intros that lead to successful outcomes work to the advantage of the person giving it by tightening their ties to both parties through the intro. If one makes a habit of making other-than-successful...
It explains that customer participation on startups’ social media during the COVID-19 crisis can expand customer interactions, make new friends, and help them find cost-effective ways of life. The literature supports the positive impact of co-creation experiences on customers’ future participation...
“Do things that don’t scale” up on their wall and live by it. As an example, great startups always have great customer service in the early days, and bad startups worry about the impact on the unit economics and that it won’t scale. But great customer service makes for ...
5. Focus first on non-personnel costs: When hunting for cost-take-out, the easiest place to start with is non-personnel costs. Here are a few areas to look into — remember any savings here could well mean one less RIF: T&E: COVID-19 has made this an easy one on the travel side...
Being able to talk about the economics of your business is great. Definitely do, particularly if they are attractive. But the most attractive economics are the ones that suggest that you're able to grow. If you are capable of calculating your unit economics in, for example, a food ordering...
Thus, the startup founder poses a deal in classic micro-economics-101 fashion. Let’s trade innovation for distribution. Large company should send a few emails to its customer base, generating easy sales at no cost, and the revenues are split. Money for nothing, gross margin for free. Howe...
From the perspective of Unit Economics, it’s important to understand the impact of Marginal Operating Costs on your Break-even Point. The below chart shows the same $500 upfront CAC and $50 MRR but, this time, we’re adding a $20 marginal operating cost each month. As you can see ...