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That is So Gross! | Tips For a Healthy Gross Margin

Gross Margin

Metrics Make the Difference

In business, we talk a lot about “the bottom line,” but have you ever wondered how deep that bottom goes? While a company’s profit, or net margin, is the net amount left over at the end of business day, the amount of that net margin is affected by factors much higher up on the income statement.…

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How to Predict if a New Business Idea is Any Good

Good Business Idea

In 2008, entrepreneur Brian Chesky and his two San Francisco roommates made the rounds of Silicon Valley VC firms with what they thought was a great idea. Five VC firms rejected the start-up’s pitch outright, and two didn’t even bother to reply. Fortunately, they were able to get some funding, and eight years later AirBnB is worth billions of dollars

This is one of the most difficult questions in the business world: How can you tell if a new business will succeed?…

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Buzzword of the Week: Baby Bills

Baby Bills

I remember when the old AT&T was broken up in the 1980s, so I was familiar with the Baby Bells that came out of that breakup. I was browsing on the Investopedia site recently, and saw the term “Baby Bills,” which at first I thought was a misspelling.

Instead, I found that the term was a hypothetical nickname for the smaller companies that would have been formed if Microsoft had been broken up for violation of antitrust rules in 2000.…

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Can Applied Economics Save Homeless Puppies?

Economics and homeless puppies

There’s a tendency to think of businesses as cold-hearted. That’s why I was so glad to read a recent blog entry in HBS Working Knowledge about an organization that wants to do good using business principals.

In 2012, Christine L. Exley and Elena Battles launched a startup called Wagaroo in pursuit of a noble market design: finding homes for dogs and vice versa.…

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Buzzword of the Week: Odious Debt

Odious debt

When I first came upon this term on the Investopedia site, I thought maybe it was referring to bonds that had been sitting in safe so long they’d developed mildew. But I was wrong,

Instead, “Odious Debt” refers to money borrowed by one country from another country, which is then misappropriated by national rulers.…

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