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Certain business models require high amounts of capital in order to create leverage/growth. Think of Uber, WeWork etc The business model of selling $1 for 50c
by goatinaboat 7y ago
Certain business models require high amounts of capital in order to create leverage/growth. Think of Uber, WeWork etc
The business model of selling $1 for 50c and hoping that later you’ll be able to sell it for $2 because... reasons.
- jfim 7y agoThat model works if there are economies of scale. Say that your one dollar cost at one million users is $0.80 fixed costs and $0.20 incremental cost. Adding more users will eventually make the model profitable, and this is how Facebook works, for example.