Bad Revenue

Not all revenue is the same.

In fact, some revenue is bad revenue.

Bad revenue comes from products that are underpriced.

Without enough revenue to cover the costs of delivering the product, the company struggles.

Customers become unhappy when they fail to receive the expected product or service.

If done over a long timeframe, the company suffers from employee burnout.

Some companies overcompensate for this by hiring more employees which decreases profitability.

Good revenue ensures there’s enough funding to cover the cost of delivering the product or service and help grow the company.

Be wary of offering large discounts as this is one of the most common ways to turn good revenue into bad revenue.

Make sure the price you charge covers the cost of delivering the product or service.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.