Lessons From This Video
- Not all products/services you offer are actually worth offering, even if people will pay you for them.
- Service based businesses should have profit margins of at least 35%, product based businesses should have profit margins of at least 20%. This is true regardless of whether you have 1,000 employees or 1.
- Opportunity costs are real and paying too much in opportunity costs will prevent you from scaling your business.
- Opportunity costs are hard to calculate (because it’s not like your accountant can tell you, “your opportunity costs were a bit higher this year than last year”).