Contribution margin |
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| Contribution margin is equal to the sales revenues received minus the variable expenses. The contribution margin helps to make better decisions about pricing, adding or subtracting from a product line, how to structure sales commissions, among other things. |
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Other resources
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Essential Differences Between Angel Investors and Venture Capital
Angel investors and venture capital providers are similar in that they invest in growth businesses in return for an ownership stake in the company and a degree of involvement and control. They do, however, differ in certain respects.
Read more: Essential Differences Between Angel Investors and Venture Capital -
Top Business Plan Mistakes to Avoid
Even the best business idea and most competent management team will fail to raise capital if the company’s business plan is of poor quality or contains avoidable errors. The following are some of the most important mistakes to avoid.
Read more: Top Business Plan Mistakes
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