Entrepreneurs starting a business from scratch have to juggle countless variables simultaneously, which is never an easy task. For instance, someone starting a business in Colorado has to worry about how to optimize their product or service, how to attract top-tier talent and how to market their business as best as possible.
It is worth bearing in mind that not all the variables are equally important; entrepreneurs occasionally overvalue some variables and undervalue others. A case in point is how some people can obsess over their mission statement, the logo of their business or the color of the paint on their office walls rather than focus on the quality of a product or service.
When it comes to building a business from the ground up, the number one variable that should concern entrepreneurs is revenue. In fact, revenue is so important that entrepreneurs are encouraged to pre-sell their products or services if at all possible.
Revenue is critical for more than one reason. To start with, any business burns through cash, and the only way for the business to be sustainable is to maximize its sales. Second of all, the size of a company’s sales is not only an indication of how accepting the market is of its offerings, but it is also a manifestation of how satisfied the company’s customers are. Any investor putting money into a start-up expects to see some sort of revenue in order to have faith in said company as well as be willing to put more money into it. Most important of all, a company’s value is determined from how much money it is able to bring in.
Running a business is a complicated matter where it is easy to lose sight of some details and get caught up in all the frenzy. Consequently, entrepreneurs may wish to reach out to an experienced professional in business law who has seen both successful and unsuccessful startups and may offer guidance during trying times.