When Talking About Business Models, Remember That Profits Equal Revenues Minus Costs - AVC

There is no shortage of discussion about Internet business models these days. And they almost always focus on revenues. But revenues are only half of the value creation equation. The other half is ...

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When Talking About Business Models, Remember That Profits Equal Revenues Minus Costs - AVC

Source: AVC

There is no shortage of discussion about Internet business models these days. And they almost always focus on revenues. But revenues are only half of the value creation equation. The other half is costs. Let me explain. Businesses are worth the net present value of future cash flows. Cash flows means profits basically (capital expenditures […]