Scaling negative margin businesses, like those seen in ride-sharing, has become more challenging due to rising interest rates and investor reluctance to fund such models.

The previous wave of tech-enabled services startups struggled due to low gross margins and complex operations, which hindered their scalability.

Many startups fail because they don't adequately map out the flow of money in their target market, which is essential for securing funding and sustaining operations.

As your company grows, raising money becomes more challenging, especially if you wait too long and your runway gets too low.

When a startup is losing money, it's essentially a wealth transfer from investors to consumers, and only a few companies will successfully navigate this situation by being very smart about their finances.

Founders often resist raising prices on their products, even when they are losing money on each sale, which can jeopardize their financial stability.

In industries with extreme competition, like the airline industry, where products are essentially commodities, margins can be driven down to unsustainable levels, leading to a brutal business environment.

High volume, low value businesses, like food and drink, are often dead ends for entrepreneurs due to scalability issues and high operational costs.

Pricing below cost can be a risky strategy for gaining market share, often leading to unsustainable business practices. You might want to price a little lower now because your margins are going to improve with time, but it's a risky maneuver, and I advise startups to maintain an 80 to 90% gross margin.