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Actually it's not that either. Success in a business context means a positive rate of return on the resources invested. Or to refine one step further, a return
by CPLX 12y ago
Actually it's not that either.
Success in a business context means a positive rate of return on the resources invested. Or to refine one step further, a return that is positive and superior to the next best alternative for the deployment of said resources at a given level of risk.
- 31reasons 12y agoSo Profit.
- CPLX 12y agoProfitability and return on investment are related concepts but are not the same thing. Instagram, among many others, most certainly generated ample return on its initial invested resources without ever generating profits.
- GoLocalApps 12y agoROI /= Profit. See Amazon (or as noted below, Instagram). However I also think that is a problem for many people who want to startup. They don't usually think about how they'll show a profit and manage to run their business within that profit. Investor money gets them started and an exit by selling an unprofitable yet growing business to a larger company is the goal.