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Harvard Innovation Labs Cast

02/02/14

@ Harvard Innovation Labs

If sales and marketing costs are triple development costs, it indicates an inefficient business model that will struggle to achieve profitability.

Video

Harvard i-lab | Startup Secrets: Business Model

@ Harvard Innovation Labs

Harvard i-lab | Startup Secrets: Business Model

02/02/14

Related Takeaways

Harvard Innovation Labs Cast

06/12/13

@ Harvard Innovation Labs

As you scale sales and marketing, those costs become the primary expenses, often surpassing R&D spending, which is crucial for creating awareness and building a pipeline.

Harvard Innovation Labs Cast

02/02/14

@ Harvard Innovation Labs

The real cost of building a company lies in reaching customers, which is why understanding and optimizing the business model is crucial.

Harvard Innovation Labs Cast

06/12/13

@ Harvard Innovation Labs

To build a successful business model, design your product to reduce costs and friction in the go-to-market process, ensuring it aligns with market needs.

Luis von Ahn

12/01/23

@ The Logan Bartlett Show

Many consumer companies struggle because they rely heavily on performance marketing, which can erode profit margins and lead to unsustainable business practices.

Harvard Innovation Labs Cast

02/02/14

@ Harvard Innovation Labs

Getting your business model right can significantly increase your company's valuation, potentially leading to 5 to 10 times higher valuations compared to those with ineffective models.

Tom Blomfield

01/07/24

@ Y Combinator

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.

Brad Flora

07/08/22

@ Y Combinator

Many founders mistakenly believe that spending on marketing, especially through ads, will guarantee growth, but this often leads to wasted resources without learning valuable lessons.

Harvard Innovation Labs Cast

02/02/14

@ Harvard Innovation Labs

Analyzing the business model is essential for understanding how to achieve profitability and sustainability in a startup.

Bret Taylor

05/08/25

@ Sequoia Capital

Many startups waste resources on non-core activities, which detracts from their ability to focus on selling products and differentiating themselves in the market.