Pursuing Revenue

Quick Summary: The continuous receipt of revenue is the life blood of every enterprise.


Every enterprise, large, small, new, old, public, or private, share one fundamental common activity: the requirement to pursue revenue on an ongoing basis.  The same pursuit, only referred to as donations, is applicable to non-profit organizations.  Every enterprise also shares another attribute: competition for revenue.  That competition may come from a direct competitor, or it may come simply from a customer’s decision to purchase something else entirely different or make no purchase commitment at all. 

Pursuing Revenue, like the previous stage, Having Operational Issues, is a never-ending stage for all businesses.  By necessity, it must become a way of life.  Revenue is the fundamental cornerstone of meeting the first principle in this collection:  Stay in Business.   All of the articles associated with this stage have been included in many of the other stages.  So, this stage may be thought of as redundant.  It has, however, been included because of revenue’s fundamental importance to every enterprise, and it would not be surprising if users of this site focused on this stage first.

The necessary continual and relentless pursuit of revenue is best described in the article in this series, “Revenue: The Wonder Drug.”  Although some readers may find the analogy inappropriate, it attempts to drive home the notion that revenue needs continuous, special attention and is the fundamental element for a company’s survival.

One of the key concepts in that article and the other articles related to it is that revenue fixes almost everything.  However, the revenue drug must be taken forever.  Revenue is the cure for the chronic disease caused by the need to maintain profitable operations.  Carrying the analogy further, just as there are many different types of drugs available to address different conditions, there are different types of revenue. 

  1. For entrepreneurs or new or existing companies launching a new product or service, the drug is external validation.  External validation occurs when customers agree that your offering is addressing a problem that they believe needs solving and are willing to pay for, now.  It represents the transition from what You say about your offering and what customers do.  The external validation drug gives life to the company.
  2. Scalable revenue is the next drug that must be taken after external validation has occurred.  Think of scalable revenue as a drug that is now aimed at the masses.  External validation is like a clinical trial in which every dose is closely monitored.  With a much larger customer base, scalable revenue is required.  It cannot require the same individual handholding and monitoring as required earlier.  Variances, including side effects not encountered in the clinical trial of external validation, will occur.  No longer can the company operate in a controlled environment.
  3. Profitable revenue will be the long-lasting drug required.  It will, however, require continual research as competitive alternatives appear and resistance to it increases.

 Other articles included in this stage discuss sales forecasting, sales impediments, positioning, and competition.  These subjects, plus others, have a direct impact on revenue and its required continuous pursuit.


Article Number : 1.030109   

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