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WATCH OUT FOR THE REVENUE TRAP! BUSINESS GROWTH & QUALITY REVENUE

MAY 10, 2017

This blog is part of series of business
-focused pieces inspired by the spirit of Columbus Startup Week. As a partner to first generation entrepreneurs, our team aims to share our experience in working with over 150 entrepreneurs and provide a roadmap for entrepreneurs in the early-stages of business.


First, it’s important to understand that there is a difference in growing a business simply for revenue gains, and growing a business for long-term success. One provides dollars in the entrepreneur’s pocket today, and the other alleviates growing pains for years to come.
 
While you are working towards business growth, avoid growing simply for the sake of growth. Accepting anyone and everyone as a client in the early stages of your business (rather than focusing on your niche market) can cause real financial stress, and physical heartache, down the road.
 
So, how can you start to drive revenue today?

GET REAL WITH YOUR NUMBERS.
 
Dealing with the inconsistencies of cash flow as an early-stage entrepreneur is tricky. Rule number one: Don’t operate on the theory of hope.
 
To truly understand the intricacies of cash flow you have to be brutally honest with what’s happening in your business. Start by setting up a forward-looking, 13-week cash flow projection tracking your business needs and wants, specifically highlighting your fixed and variable expenses.
 
This means not just seeing your cash flow at a moment in time, but having visibility into where the dollars are coming from and where they are going. Learn more about managing your cash here.

REVENUE VERSUS QUALITY REVENUE. THERE’S A DIFFERENCE.

 
A mistake many entrepreneurs make in the early stages of their business is taking any and all revenue. Simply put, that is not good for business.
 
The common oversight is not being sensitive to revenue that is profitable. Sometimes you have to say no. If there is a prospective client knocking at your door who doesn’t fit your niche but is willing to pay for your product or services, you have a tough decision to make – (a) take them on as a client even though it is not a good fit, or (b) decline their acquisition. You have to be super disciplined (which is hard!) trying to focus on quality revenue.
 
In turn, because this approach makes a business more profitable right out of the gate, they are more profitable in the long-term.
 
Related revenue questions? Check out the resources below.
 
From cash flow constraints to hiring woes, your needs are unique – especially throughout the first phases of growth. Lead us down your path and get clarity on where you need to go through our interactive site.


Any opinions are those of Gerber, LLC and not necessarily those of Raymond James. Raymond James is not affiliated with Columbus Startup Week. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.
 


INDEX
  • THE HAPPINESS FACTOR & WHY IT MATTERS TO EVERY ENTREPRENEUR
  • PEER TO PEER GROUPS, MENTORS, ADVISORS: HOW DO THEY RELATE?
  • WHY YOU SHOULD ''DATE'' YOUR PROFESSIONAL ADVISORS (LAWYER, ACCOUNTANT, ETC.) BEFORE COMMITTING
  • GERBER'S TOP FOUR FAVORITE BOOKS FOR ENTREPRENEURS
  • IMPROVED COMMUNICATION FROM PERSONALITY TESTS [AS SEEN ON INC.COM]
  • GERBER, LLC HIRING NEW CLIENT ADVISORY TEAM MEMBER
  • 5 THINGS EVERY ENTREPRENEUR NEEDS TO DO TO KICK OFF THE NEW YEAR ON A GOOD FOOT
  • GIFT GIVING FOR THE ENTREPRENEUR-THE ULTIMATE TOUGH PUTT
  • SHOULD I TREAT MY LEADERSHIP TEAM DIFFERENTLY FROM A COMPENSATION PERSPECTIVE?
  • RECAP: NAWBO CANDID CONVERSATION ''5 TIPS FOR BUILDING A BETTER BUSINESS''
  • ONCE YOU'VE CROSSED THE FINISH LINE... HOW DO YOU FIND YOUR NEXT ENTREPRENEURIAL INSPIRATION?
  • THE MYTH OF COROPORATE CULTURE DEBUNKED
  • Gerber, LLC Featured in Columbus CEO | Let's Talk Succession
  • Catered Communication Practices [as seen on Inc.com]
  • REFRESH WITH V POWER YOGA
  • COFFEE TALK WITH TOM
  • ROLLIN' WITH FUSIAN
  • DIVING INTO BUSINESS WITH A PARTNER, OR TWO
  • IS IT TOO EARLY FOR AN ADVISORY BOARD? THREE STEPS TO BUILDING THE BEST NETWORK OF BUSINESS MENTORS
  • SUCCESS STARTS WITH A PLAN | GET IT ON PAPER
  • WATCH OUT FOR THE REVENUE TRAP! BUSINESS GROWTH & QUALITY REVENUE
  • BEHIND BESA WITH MATT GOLDSTEIN
  • BESA ON 'GIVING BACK' AS A BUSY BUSINESS OWNER
  • GOAL SETTING AS AN ENTREPRENEUR
  • FIRST GENERATION ENTREPRENEURS & WHAT MATTERS MOST
  • THE ROADMAP TO ENTREPRENEURSHIP
  • WHY ASKING THE RIGHT QUESTIONS CAN MAKE A DIFFERENCE: A CAUTIONARY TALE
  • AND THE WINNER IS...
  • CAPITAL MARKETS REVIEW: Q2 2016
  • BREXIT | WHAT DOES GERBER THINK?
  • CAPITAL MARKETS REVIEW: Q1 2016
  • CAPITAL MARKETS REVIEW: Q4 2015
  • CAPITAL MARKETS REVIEW: Q3 2015
  • CAPITAL MARKETS REVIEW: Q2 2015
  • CAPITAL MARKETS REVIEW: Q1 2015
  • CAPITAL MARKETS REVIEW: Q4 2014
  • Gerber Hosts OppenheimerFunds Chief Economist
  • Gerber, LLC to Host Entrepreneur-Relationship Expert, Trisha Harp
  • 'Twitter for Dummies' Co-Author Shares Marketing Advice at Gerber
  • Nationally-Circulated REP. Magazine Coins Gerber, LLC ''Not Your Momma's Financial Advisor''
  • Gerber Featured in 'The Metropreneur Columbus'
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