3 ms·
> Is the entirety of the whole company just 3 people? From what is told in the summary, it seems like the software stack and these 3 people constitute the core
by unity1001 4y ago
> Is the entirety of the whole company just 3 people?
From what is told in the summary, it seems like the software stack and these 3 people constitute the core of the business that is going on. The business may be something totally different. But it seems to be running on that software.
> And... $20m is revenue
Even if they have lower margins than what you yourself imagined, $20 m revenue/year is still a gigantic amount. You can improve upon whetever margin or inefficiency in the process and increase the net profit - optimize vendors, costs, sales pipeline.
The difficulty in modern Internet business is getting to some place at which you can command $20 m revenue from any market. Finding the customers and the users. Not the margins.
- sofrimiento 4y agoI’ve worked at a $100 million revenue online company that didn’t make any profit. OP says money is tight after covid, so seems like it the business is connected to a (physical) market that was affected by the pandemic. He says there is an extensive roadmap by a management team that are not familiar with the technical details, so it seems like the technology is not the core business. It’s not difficult getting to a high revenue fueled by aggressive and expensive acquisition using money from investors who gets dazzled by growth numbers, but if your customer lifetime value is low and you’re not a pure SAAS business which means margins won’t automatically improve with scale, turning that company profitable can prove very difficult.