Remove Cost Remove Operations Remove Stock
article thumbnail

How Much Founder Stock Should You Offer Co-Founders?

Startup Professionals Musings

Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation.

Cofounder 261
article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

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. ” If you’re not profitable you’re purely a cost center to them. Cost of Goods Sold (COGS) =. Operating Costs.

Startup 418
Insiders

Sign Up for our Newsletter

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

article thumbnail

5 Keys To Negotiating Your Fair Share Of Any Startup

Startup Professionals Musings

Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation.

Cofounder 435
article thumbnail

What are the Key Factors Influencing the Cost of Order Fulfillment for Amazon Sellers? Explained

The Startup Magazine

Understanding the cost of order fulfillment is important for any Amazon seller aiming to maximize profits. Several key factors influence these costs, with product type, size, and weight being the primary determinants. You can explore Amazon ecommerce fulfillment services to improve customer satisfaction and streamline operations.

Cost 142
article thumbnail

Significance of Strategic Operations Management in the Electronics Industry

The Startup Magazine

The giants in electronic industries have updated themselves in almost every aspect, be it operations, supply chain, repair and maintenance, or consumer-based research and development. Strategic operations management in the electronic industry is not easy.

article thumbnail

What Would Happen if you Built the Reverse of Amazon? It Might Look Something Like This …

Both Sides of the Table

The first is that it could carry limited inventory in stock because it had limited physical shelf space. It’s true that your local storage provider will always have a cost disadvantage to us because we can store goods in a central facility with minimal local infrastructure costs.

article thumbnail

Airbnb S-1 (Part 1): So How Profitable Is This Thing Really?

View from Seed

Airbnb convinced travelers to part with 100% of their booking cost up front and then they pay out the required amount to hosts when the stay actually occurs. The straight cost of revenue line is only ~25% of revenue implying a 75% gross margin, assuming you were looking at this in a simplistic revenue / COGS / gross profit manner.