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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. Internet scale. In many Internet startups 80% of the operating costs will be people. The example chart is not actually atypical.

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5 Startup Cost Realities Most Founders Underestimate

Startup Professionals Musings

Depending on the size and location of your business, you could easily also end up paying thousands of dollars a month in internet costs and other utility expenses, including electricity, phone service, water, janitorial services and beak-room supplies. Your frugal role model of bringing your own lunch won’t be convincing to most employees.

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Working with Developers

SoCal CTO

If your developers have a better machine, screen, internet connection, or chair at home than they do in the office, then there’s a problem. It implies that it’s something really easy to do. “I I just need you for a few hours to help me move this weekend.” Poor machine, screen, connection, chair.

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China Startups – The Gold Rush and Fire Extinguishers (Part 5 of 5)

Steve Blank

70% of Chinese Internet users are under 30. Internet penetration in Beijing is greater than 70% while it’s less than 25% in Yunnan, Jiangxi, Guizhou and other provinces. The slide below from the Zhen Fund shows the breadth of business coverage of each of the Chinese Internet incumbents. New Rules for China.

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6 Benefits of Outsourcing and Freelancing In Startups

Startup Professionals Musings

With worldwide instant access to skills and alternatives via the Internet, I see a much more competitive and skilled remote workforce than ever before. times base salary range, not including space and equipment requirements. Contract employees know they have to perform well or they will be quickly replaced.

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Why The Future Of US High-Tech Is Bright

YoungUpstarts

The same is true for Internet services, digital media and most products that involve significant up-front research and development (R&D) costs. The United States, which has been a magnet for the most talented overseas-born software engineers, is now home to some of the most innovative software and Internet businesses in the world.

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What Angel Investing & Florida Condos Have in Common

Both Sides of the Table

The price of property has an inherent value tied to two factors: 1) the rental rate you could charge for your property and 2) annual salaries in a given geography. Most of these companies will not get big enough and earn enough profits to pay big enough salaries for teams. You’re stuck in the past.&#.

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