Why Focus on Revenue to drive Profit & Scale?

Revenue is called “Top Line” because it sits at the top of the income statement. It is the first mover. You cannot have profit without revenue. Duh.

We focus on revenue because It is absolutely critical that a business has a single revenue forecast that the entire organization marches towards. This will be the glue that creates cross organization alignment. Having a deep understanding of a part-level forecast will drive gross margin, cash and ultimately profit & scale.

Visualize having a 12-month part-level & customer-level, revenue forecast that encompasses all the revenue levers that exist for your business. You know ALL risks to this forecast and the employee who own resolving this risk. Imagine also having a list of all out-of-forecast revenue opportunities and the employees who own chasing these opportunities. Also imagine you know all supply-side barriers to achieving this revenue. How valuable would this 2-page document be to you?

Private equity and investors love a disciplined, accurate growing revenue business. Predictability is rewarded.