|
Creating value is not the same as creating revenue —and viceversa. Increasing your revenue can be a good indicator of something happening: the market finding your offerings attractive, making a simpler process for your customers to buy, increasing volume of sales, increasing prices, etc. YET, when your cost structure remains, your revenue minus costs will stay pretty much the same (because your costs are proportional to your revenue on most of the situations above). Revenue can deceive you. You could be making millions in revenue AND destroying value (and killing your business at the same time). |