Knowing what it will take to profit from every transaction is key to evaluating the potential of the startup idea and the different levers that need to be focused on for the numbers to add up. Entrepreneurs must evaluate their ideas against those characteristics, vision and goals before taking the first step forward. The idea is that the growth will eventually compensate for the losses through future promising revenue channels and market share. The key profitability measure of on-demand startups is calculated per-order. And any other revenue model specific questions such as, the average per unit revenue and expenses from each transaction for on-demand, or profit margin for e-commerce companies.

Source: Forbes November 19, 2019 15:45 UTC