In an operationally intensive business, it's essential to be significantly better than competitors at managing finances and operations to succeed.

Companies often mistakenly prioritize operating margins too early, when the focus should be on achieving scale first, as margins become relevant only after reaching that scale.

It's essential to track unit economics closely, especially in businesses with thin margins, to optimize costs and focus on advertising channels that attract high-revenue, low-cost customers.

Software businesses should target high margins, ideally around 80% to 90%, to ensure sustainability and profitability.

Your gross margins may not be great today, but you should have a clear path to achieving healthy gross margins over time as costs decrease and you capture more value.

Our gross margin needs to be above 60%, ideally above 70%.

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.

Understanding your margins and costs is vital; we initially had negative margins due to underestimating costs.

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.