Making Money
This session addresses the fundamental concepts of unit cost, unit revenue, and unit margin to illustrate how businesses make money.
Remember:
- Understanding margins and costs is critical to making smart business decisions.
- Until they validate all components of their business model, entrepreneurs should always think twice before spending money on things that they could borrow or lease.
- Many startups fail because they run out of cash. To survive in business, you need to forecast your cash needs and keep in mind the delay between when you need to pay your bills and when your customers pay you.
View the video script
