A New Way To Think About “Big”
I’ve been thinking that the ultimate value of some of the newer web businesses (web 2.0?) may not be so much a function of revenues because the operating margins are so high. It may well be possible to create a business with a value in the hundreds of millions of dollars without even getting to $50 million in revenues.
Brad and I did a podcast with Heather Green of Business Week last week and she got me talking about this stuff and there’s a two and half minute section in the middle of the podcast where I articulate this thinking.