Remove Finance Remove Price Remove Working Capital
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How Startups Overcome the Capital Gap

Harvard Business Review

He decided to go after Salesforce.com with a Software-as-a-Service Customer Relationship Management product at a price-point that was one sixth of what Salesforce.com, the market leader, charged. The initial cash needs to come from revenues, not financing. No venture capital. Not even any kind of bank financing.

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Why Preventing Disruption in 2017 Is Harder Than It Was When Christensen Coined the Term

Harvard Business Review

Construction equipment and disk-drive manufacturing required heavy machinery, distribution facilities, and immense amounts of working capital. Asset-light businesses are not financed with debt. They’re financed with equity—in other words, a stake in the company. They are not asset-heavy. They are asset-light.

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What are the Best Working Capital Loan Options in 2019?

Strategy Driven

If you are operating a start-up, you may face problems with managing the cash flow of your business efficiently and may have to rely on working capital loans. Working capital loans are not utilized for long periods or the purchase of noncurrent assets due to their short repayment period.

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Don’t Turn Your Sales Team Loose Without a Strategy

Harvard Business Review

As a consequence, salespeople tend to sell to anyone they can, often at discounted prices to make a volume quota target. Because of this, selling cycles were lengthy, and, even when reps did close deals, they did so at highly discounted prices and were forced to include unwieldy service requirements. But hope is not a method.

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What to Know Before You Sign a Payment-by-Results Contract

Harvard Business Review

Cigna is the first insurance company to get pharmaceutical companies to agree to value pricing based on results for certain cholesterol-lowering drugs. Finally, some companies have struggled to finance their activities without payment while they work on delivering the results, limiting their ability to innovate too.

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Is Your Supply Chain Ready for the Congestion Crisis?

Harvard Business Review

To our surprise, it sold in 20 minutes for 25% more than the asking price. Longer supply chains also increase inventory levels and carrying costs related to financing and warehousing. Product overstocks result in discounted prices, which are usually about half to two-thirds of the gross margin.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

Since its spin-off in July 2014, the capitalization of Seventy Seven Energy, the former oilfield services business of Chesapeake Energy, has melted by more than 75%, at least partially reflecting continued dependence on its former parent for about 90% of its revenues. Does the business have a complete, balanced, and cohesive management team?