https://berkonomics.com/?p=4041&utm_source=rss&utm_medium=rss&utm_campaign=what-is-the-real-goal-for-our-management-and-company Dave Berkus' business insights Mon, 02 Dec 2019 16:37:18 +0000 hourly 1 https://wordpress.org/?v=6.9.4 https://berkonomics.com/?p=4041&cpage=1#comment-133839 Mon, 02 Dec 2019 16:37:18 +0000 https://berkonomics.com/?p=4041#comment-133839 While ultimately revenues and profits are the goals of an on-going business (and scaling by size or assets makes complete sense), in the short and mid-term some start-ups are clearly designed to convince potential buyers that the business has high potential for revenues and profits (even at the cost of many years of losses and/or low revenues). Some (maybe, many?) start-ups are targeted to a successful sale or IPO rather than immediate profitability — we have seen high valuations for companies with negative profits.

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