Start up phase are most useful for firms in which phase of the industry life cycle .
What is the best price-to-sales ratio?
A ratio of less than 1 indicates that investors are investing less than $1 for every $1 the company earns in revenue.
What is price-to-sales ratio used for?
The price-to-sales ratio shows how much the market values every dollar of the company's sales. This ratio can be effective in valuing growth stocks that have yet to turn a profit or have suffered a temporary setback.
Start Up Phase :
During the startup phase, you spend your time meeting people, coming up with new ways to sell your products or services and consistently implementing new ideas. At this point, you won't have many processes and you should be tweaking your business model to get a sense of the market and how to turn a profit.
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