Why Gross Profit Is More Important Than Revenue

Feld Thoughts

We ended up talking about using Gross Profit, instead of Revenue, to do valuation analysis. Since we invest across a number of different themes, we’ve had to deal with very different revenue and gross margin profiles since the beginning, whether we realized it or not. GP = Net Sales – Cost of Goods Sold GM = ((Net Sales – Cost of Goods Sold ) / Revenue). Entrepreneurship gross margin revenue valuation

Revenue = Resources

Eric Friedman

In this constant struggle, I learned (definitely the hard way) that Revenue = Resources. When I was first on the BD team at Foursquare we would optimize many of the initiatives and strategic partnerships around brand recognition and exposure – there was no scalable revenue to speak of. When I started beating the drum to drive scalable revenue and products to match, I was met with some opposition (to say the least!). Eric Friedman Revenue Sales

Startup Revenue Milestones

K9 Ventures

At K9 we invest in companies which have a clear/direct revenue model and typically don’t invest in companies that follow the Ubiquity first Revenue Later (URL) revenue model made famous by Eric Schmidt in 2007. I call this Revenue Development and have written about it before.

10 Top Revenue Models Drive Viable Businesses Today

Startup Professionals Musings

Every business needs to develop a revenue model even before a product. The alternatives range from giving the product away for free (revenue from ads), to pricing based on costs, to charging what the market will bear (premium pricing). Revenue is a percentage of every transaction.

Should Entrepreneurs Grow Revenue Or User Count?

Startup Professionals Musings

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion.

How Do You Select A Revenue Model For Your Startup?

Startup Professionals Musings

The revenue model you select is basically the implementation of your business strategy, and the key to attaining your financial objectives. So what are some of the most common revenue models being used by startups today? business business model entrepreneur revenue model startup

7 Easy Ways for Small Businesses To Increase Their Revenue

YoungUpstarts

More revenue. 2017 has been a good year for growing revenue. 69% of small business owners expected revenue growth this year. They expected hearty growth, too: 38% expected revenue to rise by more than 5%. Got any of your own suggestions for increasing revenue?

5 Keys Steps For Every Startup Roadmap To Revenue

Startup Professionals Musings

Kristin Zhivago, in her book “ Roadmap to Revenue ,” makes the point that the selling system is broken, since sellers no longer sell the way customers are buying. Build and deploy a revenue growth action plan. business entrepreneur Kristin Zhivago revenue roadmap startup

With Rs 53.4 Cr revenue in 2018, Grofers achieved way less than the projected revenue of Rs 100 Crore

Our Own Start-up

Grofers expects its revenue to cross Rs 2,500 crore this fiscal year (2019) however Grofers last year revenue was Rs 54.3 Crore as compared to the projected revenue of Rs 100 Crore.

Revenue = Product Market Fit

Agile VC

This is a logical thing to do… when we started LinkedIn, my mentor Reid Hoffman instilled a mantra of Growth –> Usage –> Revenue which still holds for many consumer companies. Arguably revenue is the best signal of product-market fit for B2B startups.

4 Tips For Diversifying Your Company’s Revenue Stream

YoungUpstarts

At some point, there’s a need to diversify the stream of revenue. Whether or not it’s immediately obvious, there are ways for your company to diversify its revenue stream moving forward – and you need to make it happen.

9 Great Paths To Recurring Revenue For Your Startup

Startup Professionals Musings

Every new business quickly realizes that revenue coming in every period on a committed basis is the Holy Grail to survival and growth. According to many experts , getting new customers is five to ten times harder than getting additional revenue from existing customers.

Our revenue - but not our customer

deal architect

It’s been a decade but I still remember it vividly because I was so shocked. An American Airlines supervisor refused to let me stand by on an earlier flight because as he put it “You are not our customer. Industry Commentary

Efficient Methods For Boosting Startup Revenue

YoungUpstarts

Though you may not have much to work with now, if your startup is to succeed, you must work consistently at finding and executing plans to increase your revenue. Here’s advice you may not have thought you’d hear but sometimes boosting revenue for your startup is just a matter of time.

Website Ads are Not a Revenue Stream for Startups

Startup Professionals Musings

One of the biggest red flags I see in many Internet-related business plans today is advertising as the initial revenue stream, or a key part of it. Until you get a million page-views per month, your revenue will be negligible, and advertisers won’t be interested in your site.

Even a Non-Profit Startup Needs a Revenue Model

Startup Professionals Musings

Technically speaking, in the United States, a non-profit corporation or association is one which has been exempted from Federal income taxes by meeting the criteria set out Section 501(c) of the Internal Revenue Code, most notably religious, educational, and charitable entities.

Revenue vs. Income

Feld Thoughts

I’m tired of “Revenue” being referred to as “Income.” For firms, income generally refers to net-profit: what remains of revenue after expenses have been subtracted. . Whenever I ask “do you mean your bottom line or your revenue” I’m often surprised by which answer I get, including “I’m not sure what you mean.” Call the thing at the top of the P&L “Revenue”, not “Income” Rant off.

Revenue Recognition’s Effect On M&A

YoungUpstarts

There has been a lot of chatter regarding changes in revenue recognition criteria lately, but the effects it will have on the evaluation of companies planning an exit is just beginning to emerge. Recognize revenue when performance obligations are met (good(s) or service(s) have been provided).

SAP "allocating product revenue subjectively"?

deal architect

Personally, I would be impressed if indeed SAP is as Peter Goldmacher of Cowen suggests "offering draconian discounts on other products sold along with HANA in order to make it appear as if HANA is growing at such a rapid. Enterprise Software (IBM, Microsoft, Oracle, SAP

4 Brilliant Ways To Create And Manage Multiple Revenue Streams

YFS Magazine

Management of revenue streams is just as important as the creation of them. Finance Grow cash flow money raising money revenue channels revenue modelIf systems aren’t in place to manage the influx of enquiries, sales and service then you will inevitably struggle, if not fail.

A Super Simple Way To Increase Revenue Per Client

YFS Magazine

This is an effective way to increase your revenue per customer while you're on your initial sales call. Need to increase sales? Grow Marketing & Sales sales upselling

Revenue from technology, baby!

deal architect

I was talking to Chris Murphy at InformationWeek recently about the theme of my next book. He talks to CIOs all the time and is on top of most mega trends in the industry. He agreed most industries are looking. Industry Commentary

How Reducing Friction Increases Revenue

Duct Tape Marketing

How Reducing Friction Increases Revenue written by John Jantsch read more at Duct Tape Marketing. Marketing Podcast with Roger Dooley. Podcast Transcript. Today on the Duct Tape Marketing Podcast, I chat with author and keynote speaker Roger Dooley.

SayAhh’s Revenue Projections

Feld Thoughts

The co-founders decided to divide-and-conquer, with Dick tackling expense projections and Jane tackling revenue projections. Jane asked Josh, who provided SayAhh with solid advice on setting up their accounting systems , for help in creating the revenue side of their financial forecast. I am glad to see that you are forecasting revenues based on business drivers. In this case, the # of users and the average monthly revenue per user.

DeskTime CEO Reveals How They Accelerated Business Growth And Revenue By 94 Percent

YFS Magazine

In recent years, the time-tracking company has reported an uptick in rapid growth, while increasing revenue by 94%. What's their secret? Grow Operations Business Growth outsourcing productivity scaling

Four Email Marketing Tips To Increase Engagement And Revenue

YFS Magazine

How can your business take advantage of email as a high-ROI vehicle to increase your revenue? Let's explore four of the best ways. Grow Marketing & Sales email marketing marketing online marketing

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5 Ways To Increase Your Business Revenue

YoungUpstarts

With this, the rest of this post outlines five of the key strategies that will allow you to increase your revenue. That being said, social media holds a lot of promise as a platform to increase the revenue for your business.

SAP Sustainability and customer revenues

deal architect

I got excited when I saw Dennis Howlett’s post about SAP Sustainability hints at revenue growth. For my next book I am cataloging all kinds of companies which are embedding tech to create “smart products” for their sectors and for. Enterprise Software (IBM, Microsoft, Oracle, SAP

Drive your recurring revenues.

Berkonomics

I have a positive fetish for recurring revenue. In the virtual world, a much higher percentage of incremental revenue falls straight to the bottom line. With the right recurring revenue model, top line growth can really shoot the lights out.

Small Business Revenue Is On The Rise: Are You?

YoungUpstarts

Not only are you kicking it when it comes to revenue, you’re also savvy marketers with impressive do-it-yourself skills. Digging into the numbers, 70 percent of small business owners reported meeting or exceeding their Q1 2016 revenue targets.

How Product Unbundling Can Increase Revenue

YFS Magazine

As business owners, we are always thinking about more: How can we find more clients, add more value than competitors, and of course, earn more money? One way to offer more is to unbundle your offerings. Grow Marketing & Sales marketing product bundling product strategy

Real Revenue Adjustments and Profit First Accounts

Mike Michalowicz

A question that comes up for some readers is how to set up Profit First Accounts when you have a real revenue adjustment. . Allocate money that is not recognized as real revenue that goes to materials and subs, and create/put it in a materials and subs account.

Market Type and Revenue. 2 Minutes to Find Out Why

Steve Blank

This video describes how “Market Type” affects your revenue and your burn rate. Understanding “Market Type” can save you a ton of money and time.

Startups With Real Revenue Can Get Venture Capital

Startup Professionals Musings

Your friends and family are really the only answer until you have a significant revenue stream. Use friends, family, and angels, if possible, to get a product, revenue, and customers first before the VC connection. entrepreneurs startups revenue stream venture capital business

Death By Revenue Plan

Steve Blank

You would think that would be enough to get wrong, but entrepreneurs and investors compound this problem by assuming that all startups grow and scale by executing the Revenue Plan. All discussion focused on “missing the revenue plan.”. Revenue Plan Needs to Match Market Type.

Who are the Major Revenue-Based Investing VCs?

David Teten

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Revenue-based Venture Capital

Impressive Strategies For Boosting Your Small Business’s Revenue

YoungUpstarts

As a small business, you might be finding it tricky trying to increase your profits and revenues. However, you will be glad to hear that there are plenty of strategies that you could implement which will be vital in helping you grow your revenues.

Lean LaunchPad for Life Sciences – Revenue Streams

Steve Blank

This post is an update of what we learned about life science revenue models. Life Science/Health Care revenue streams differ by Category. For commercialization, the business model (Customers, Channel, Revenue Model, etc.) 18 months to first revenue from a deal.

6 drivers that determine your revenue model

The Next Web

It is critical you have a well-thought plan for the long term, even if revenues will be minimal in the short term. Revenue models can vary based on: (i) your industry; (ii) your product or service within that industry; and (iii) what your direct competitors are doing.

Should your new VC fund use Revenue-Based Investing?

David Teten

I’ve been a traditional equity VC for 8 years, and I’m now researching Revenue-Based Investing and other new approaches to VC. The question I’m asking myself: should a new VC fund use Revenue-Based Investing, traditional equity VC, or possibly both (likely from two separate pools of capital)? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Who are the major Revenue-Based Investing VCs?

Should you raise traditional VC or Revenue-Based Investing VC?

David Teten

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. Who are the major Revenue-Based Investing VCs?

Strategies to Increase Your Construction Business Revenue

Up and Running

Managing a Business construction construction business construction strategies growth revenue small businessIn the construction industry, there are a number of ways to increase your profit margins, even when you are new to the business.

4 Ways A Freemium Revenue Model Can Work For Your Business

YFS Magazine

Here are four reasons why we decided to utilize a freemium revenue model and how it could possibly work for you. Plan business model freemium pricing pricing strategy revenue model