Joel Basgall, CEO and CoFounder of Geneca, recently posted this article to the Entrepreneur website.
Industry standards are for often less than helpful — especially when they’re used to make strategic business decisions.
Granted, some benchmarks are useful for purposes of comparison. If you run a chain of grocery stores and your profit margin is 4 percent, you’re outperforming the average grocery store’s 1 to 2 percent profit margin.
But others are simply shortsighted. Just yesterday I was asked, as I often am, how to determine what a company should invest in creating or growing a software product. Many people fall back on some sort of industry or internal standard, like mandating that R & D should be 15 percent of gross revenue.
Read the full article at Entrepreneur: How to Make Money in Software (No Matter What Company You Run)
