The 40% Rule http://t.co/5zb1B80aLe
— Fred Wilson (@fredwilson) February 10, 2015
via https://twitter.com/fredwilson
“Your annual revenue growth rate + your operating margin should equal 40%.
So, if you are growing 100% year over year, you can lose money at a rate of 60% of your revenues
If you are growing 40% year over year, you should be breaking even
If you are growing 20% year over year, you should have 20% operating margins
If you are not growing, you should have 40% operating margins
If your business is declining 10% year over year, you should have 50% operating margins”