In a #startup environment focused on MVP, Customer Discovery, Lean… There seems to be a gap on understanding some fundamentals of a scaling business. The practical aspect of this is directly connected to raising capital. Amounts, types and terms are directly connected to the “math”.
*disclaimer- it does not apply to businesses that are considered Flip Deals that focus on arbitrage and not based in margin models that scale. I love Flip Deals. But it’s a different conversation.
I am typically a broken record about “S Curves”. Most #startups focus on the initial inflection of the curve that is depicted by the hockey stick curve that is in every pitch deck.
I was chatting with a super angel this morning and he reminded me of the classic DuPont Analysis. He encouraged me to start teaching these fundamentals at #atdc. Not sure if anyone cares, but thought I could open the discussion.
More to come on this topic as it relates to #startups, but for now… Study up.