WTF? / Part 1 / 1.4
What is revenue?

Revenue

THE 30-SECOND ANSWER

Revenue is the total money your business brought in from sales before any costs come out.

In plain English

Revenue is the top line. It says nothing about whether you made money, only about how much business went through the door.

In resale, revenue is easy to grow and easy to misread. Selling more units at a loss grows revenue and shrinks the business.

Example

You sold 40 appliances last month at an average of $450. Revenue was $18,000, whatever they cost you.

Why it matters

Revenue is the number every other number is measured against: margin, expenses, turn, growth.

COMMON MISTAKETreating deposits or financed sales you have not delivered as revenue.
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