Entrepreneurial Optimism

Entrepreneurial Optimism

by | Mar 13, 2023 | Peter Dragone Blog, Planning

Entrepreneurial optimism.  Working on your seed fundraising pitch?  Want to really get the investors’ attention?  Start with a flashy video.  Spend a great deal of airtime describing how you developed your invention, its “origin story.” Concentrate on the huge,...
Projecting Net Profits

Projecting Net Profits

by | Mar 5, 2023 | Peter Dragone Blog, Planning

My last blog described the importance of EBITDA as both a profitability metric and as a tool for estimating the value of a company. EBIT, its close cousin, is simply EBITDA minus depreciation and amortization expenses. It is also a crucial profitability measure but,...
EBITDA Multiples

EBITDA Multiples

by | Feb 23, 2023 | Peter Dragone Blog, Planning

In my last blog I discussed Contribution Margin: Company revenues minus variable expenses. It’s the money left over to pay operating expenses. Once those operating expenses are deducted, what remains is Earnings before Interest, Taxes, Depreciation and Amortization...
Contribution Margin Is Important

Contribution Margin Is Important

by | Feb 17, 2023 | Peter Dragone Blog, Planning

As my previous blog suggested, gross margin is a critical profitability metric. Yet, it should not be looked at in isolation. A 50% gross margin on an ecommerce product may seem adequate, but it is only part of the picture. What if your selling expenses are high?  You...
Managing Gross Profit

Managing Gross Profit

by | Feb 9, 2023 | Peter Dragone Blog, Planning

The importance of gross profits cannot be overstated. If you’re contemplating a fundraising round or an exit event, then it’s a benchmark metric right up there with ARR (annual recurring revenue), Sales & Marketing Expense/Revenues, and EBIT.  Investors want to...
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