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Most businesses will have very different cost distributions, because no two businesses are the same (even if two companies do the same thing). But there's still
by tomnipotent 5y ago
Most businesses will have very different cost distributions, because no two businesses are the same (even if two companies do the same thing). But there's still pressure on what your margins are expected to be by existing and potential investors, in no small part because of expectations of returns based on risks of the business and it's capital management strategy.
And is less an "average" number and more of a benchmark to aim for. It's perfectly possible to run a business on a 55% margin, but investors have options and whether it's VC or traditional bank loans this number is going to come up and be a distinguishing factor on cash availability.