What if you’re a tech company with just $2 billion in revenue?
That’s what a team of researchers at Oxford University have determined, and they want you to pay attention to what they’re saying.
It turns out that a lack of awareness and transparency about how companies’ cash flows work can lead to an enormous amount of wasted money.
The research team, led by Oxford Business School professor and former Oxford University economist Peter Hall, has compiled an exhaustive list of companies that have been unable to keep pace with the growing trend of spending on new products, technology, and marketing.
Their research indicates that the average startup is spending $2,200 on new technology, $200 on advertising, and $400 on sales, for a total of $2 million in new spending annually.
The study’s findings, which they’re calling The Big Payoff, are important for a number of reasons.
For one, the big companies spend millions of dollars on the latest in advertising and marketing, which can make up an entire company’s annual revenue.
For another, it shows that companies with more money on their balance sheets can afford to invest more aggressively in new product launches and marketing to grow their revenues.
In short, it means that big companies should be able to afford to spend more money, not less.
But that’s not necessarily the case, as the researchers point out.
As an example, the average start-up spends $2 in total on new product development, according to the report, which is slightly lower than the $2-per-product figure reported by the National Retail Federation in 2012.
That’s not because a large number of companies haven’t been doing anything innovative, they write.
Rather, it’s because the big firms are spending more money than they should on research and development, which means that their marketing and development teams are working overtime to find new ways to market products and services, which leads to waste.
The researchers found that the typical company spends $1,000 on new marketing and advertising, but the average company spends nearly $2 per new product.
The Big PSA “is not just bad news for big businesses, but for consumers and the economy as a whole,” Hall told CNBC.
“It’s a very serious problem.
The problem isn’t just that a large proportion of big companies are not spending enough money to invest in new products or to develop new products.”
Hall added that he was surprised by the high number of waste in the study.
“I was expecting there to be more innovation.
But I was also surprised by how much of it is wasted.
It seems like a lot of people don’t pay attention,” he said.
“There are lots of companies out there, not just big companies, that are spending a lot more money and doing less innovation.”