Post by account_disabled on Dec 19, 2023 3:55:45 GMT -5
Minutes Topics Strategy Business Model Subscribe Permissions & Share What to Read Next Are ubiquitous stores the new face of retail? Opportunities Hidden in Paradoxes Good Questions Elizabeth Heichler Solving the Climate Change Problem with Artificial Intelligence Jim Frazier The bike-sharing company was founded in 2010 by members of the Peking University Cycling Club without much fanfare. They initially focused on bike tours, but quickly pivoted to what they saw as a bigger prize: bike-sharing apps. Over the next three years, the company grew explosively. By 2006, it had a fleet of bicycles in China and soon began opening branches around the world, including India, Europe, Australia and the United States. $100 million in funding. But by 2010, faced with fierce competition and cash flow pressure, its leaders repeatedly considered filing for bankruptcy.
A year later, it closed down. What went wrong? (especially those backed by venture capital), there is a focus on growth at the outset. Often, this means the business will lose money. Of course, this is not unexpected for startups, but the key question is whether this loss is healthy or unhealthy. Get the latest on Innovation Strategy The latest insights on Job Function Email List workplace strategy and execution, delivered to your inbox once a month. What is your email? Sign Up Privacy Policy If the business model anticipates creating and capturing value.
Then losses occur purely because entrepreneurs invest in growth and scale. Over time and scale, the losses should resolve themselves. These are health losses. But if the business model is fundamentally flawed and fails to capture some of the value it creates, then scale won't turn losses into profits. Contrary to conventional thinking, absorbing losses year after year to drive revenue growth doesn't work for most entrepreneurs. Found that this could lead to failure. However, there is a simple but often overlooked analysis that can help entrepreneurs determine.
A year later, it closed down. What went wrong? (especially those backed by venture capital), there is a focus on growth at the outset. Often, this means the business will lose money. Of course, this is not unexpected for startups, but the key question is whether this loss is healthy or unhealthy. Get the latest on Innovation Strategy The latest insights on Job Function Email List workplace strategy and execution, delivered to your inbox once a month. What is your email? Sign Up Privacy Policy If the business model anticipates creating and capturing value.
Then losses occur purely because entrepreneurs invest in growth and scale. Over time and scale, the losses should resolve themselves. These are health losses. But if the business model is fundamentally flawed and fails to capture some of the value it creates, then scale won't turn losses into profits. Contrary to conventional thinking, absorbing losses year after year to drive revenue growth doesn't work for most entrepreneurs. Found that this could lead to failure. However, there is a simple but often overlooked analysis that can help entrepreneurs determine.