Revenue Resource
The Importance of Building A Revenue First Business
Key Takeaway
While taking a revenue-first approach is a more disciplined and focused path to building your business, working with constraints (i.e. working with your cash flow) forces you to get creative and capital efficient.
Prioritizing revenue…
forces you to build a product that people actually want to buy. It also enables you to better understand your customers and what they value, which can help you focus on creating a product that provides real value. Additionally, putting revenue first forces you to take a more disciplined approach to marketing, sales, and other business functions.
There are many benefits to building a revenue-first company, but it requires a significant investment of time and resources in order to be successful. You need to be willing to put in the hard work necessary to build an effective sales and marketing strategy, as well as create a high quality product that people are actually willing to pay for.
At the same time, though, if you do manage to succeed in building a profitable business from the ground up, the payoff can be huge – both in terms of financial success and satisfaction from having built a successful company. So if you’re ready to take on this challenge, building a revenue-first business might just be the right choice for you.
While this is a more disciplined and focused approach to building your business, working with constraints (i.e. working with your cash flow) forces you to get creative and capital efficient. In the long run, this results in a company that is far more profitable and sustainable. By taking this path, you put yourself in a position where you don’t need external funding to survive, but rather it’s a nice to have to thrive. If and when you fundraise, it’s going to be on your terms and based on real traction, not just hopeful “potential”.
And the benefits of pursuing revenue are endless. With more revenue, you get to hire *really* smart people and you can give them room for error – which makes all the difference for any company, early stage or late stage.