Remove Development Remove Finance Remove Fixed Costs Remove Industry
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Business Plan Development: Know your Finances

Strategy Driven

Plus it’s a useful number for comparing with different standard industry ratios. Differentiate between fixed costs, such as rent and payroll, and variable costs, such as advertising and delivery. Develop a cash-flow statement. If your business is viable, at a certain point your revenue will exceed your costs.

Finance 10
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How Do I Start A Small Business?

Strategy Driven

Conducting a thorough market analysis to understand the target market, industry standpoint, business strengths, market trend, market theme, etc. Describing the offerings of your services, the product life cycles, intellectual properties as well as the research and development procedures of your business. Purchasing an Insurance Policy.

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Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

Such a strategy limits an early venture's funding in order to force the business to develop a profitable business model and then invests heavily in growth once such a model is identified — Christensen terms such investments "good money" for incubating growth businesses and extols the strategy for three reasons.

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Is Rooftop Solar Finally Good Enough to Disrupt the Grid?

Harvard Business Review

The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay. This story of disruption should feel familiar.

Energy 8
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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

In many industries, the capital required to build an asset of minimum efficient scale is growing. For instance, the cost of building and equipping a leading-edge semiconductor fab has climbed to $7 billion, as the technology required to make more advanced chips is getting more complex. Model 3: Joint venture of similar assets.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

The first category is exogenous factors over which the business has little control: the growth of the markets into which it sells; the competitive intensity and thus the average profitability of the industry in which it operates; or the fragmentation of its industry and thus the scope for a growth-by-acquisition approach.

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3D Printing Will Revive Conglomerates

Harvard Business Review

Hailed in the 1960s as bastions of sophisticated management, they used cheap financing to acquire, then rationalize, many family-owned firms. With GE’s recent announcement to split off its remaining finance operations , and Honeywell also considering divestment, the pressure on these groups remains in force.