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.

Operationally intensive businesses often have much lower gross margins than expected, making it essential to focus on improving these margins to ensure 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.

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.

Startups often underestimate their expenses, especially in the early days when founders may undervalue their own time and efforts.

We aimed to be profitable on the first order, which was uncommon at the time, and this focus on profitability helped us succeed.

When entering new markets, you may initially spend into negative ROI, but understanding the maturation curve of that market is essential for long-term success.

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.

We had a beautiful growth graph, but we realized we were running a business with only a 5% margin, which isn't sustainable for a software company.