R. Shawn McBride recently spoke about the importance of revenue.
Hi folks, I’m Shawn. I’m back with you again and I’m talking about what does revenue prove? You know, if you are going out there, if you’re building a company, a lot of times investors will want to see revenue. A lot of times they want to see a profit, too, but they really want to see revenue. They want to know why. Why is revenue so critical to the investor and to growing your company to the next level? You know what revenue does? It proves the cause of. It proves somebody’s willing to buy it.
Do you have a third-party buyer that’s willing to spend the money to take what you have and put it their pocket and to exchange the money for it at the price you got it at? When you’ve got revenue, you’ve got proof that your concept works. You can build all your other financial assumptions from there, but the key to the start of this is to have that money in your coffers and to show that people are willing to trade their hard-earned money for what you got. So revenue is critical.
Many times you’re going to start a conversation with an investor, private equity, venture capital, whatever it is. They’re going to start with the question, do you have revenue? Do you have money coming in? How are you building your business?
So, for those of you that are starting out, one of the first hurdles you want to pass is to start getting money coming in the door. Show that your product is worthwhile. Show that it is something that people want and they’ll buy. And once you have that revenue coming in, then you can start growing the stream from there and become bigger and bigger and bigger.
So I want you to think about this. Revenue first, very critical. Get the ball rolling. Once you have the ball rolling you can do even more.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Pierre Amerylnck.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.