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New Product Rollout Breakeven Points

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Mark Leslie - Many company executives are resigned to this state of affairs, determined to ride out the tough phase of the new product cycle on the path to positive cash flow. But it doesn't have to be that way. By learning from the mistakes of the past, startups can build cost-effective, successful sales teams that burn through a minimal amount of cash on the road to breakeven.


Manufacturing Learning Curve (MLC) which is widely accepted in the manufacturing sector. The MLC states that the cost to produce the early units of a new product normally is high, but over time, as the production team learns how to optimize manufacturing and wring-out costs, volume increases and per-unit product costs decline sharply.

Sales Learning Curve (SLC) Rather than starting with a large sales force, a company using the SLC is better served by hiring a small team of sales execs with the analytical skills and patience to lead the company through an iterative learning process that includes the continuous discovery and solution of small but crucial problems.

ark Leslie is a technology partner at El Dorado Ventures. From 1990 to 2000, Mark served as chair and CEO of Veritas Software.

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