Back to feeds

💰Learn Start-up Maths —( Concept - 1 )📊 💱 All details about “ REVENUE ” • Whenever someone ask you what is revenue just tell him proudly “ Revenue is the total amount of money a business earns by selling its products to consumers ” • Btw in your startup journey few people's will ask for sales , turnover , earnings , income , gain , and top line statement so just tell them same thing because both are same • There Are Only 2 Types Of Revenue 1=} Operating revenue — Revenue generated from a startup main business activities Example— Apple selling iphones or just Founder selling revenue from it's hero products 2 =} Non operating revenue — Revenue earned from different secondary sources Which is not directly connected to core startup operations Example— Apple earning from it's own ecosystem subscription service like apple music , softwares even intrest incomes , dividends , rental , royalties and all other incomes are your non operating revenue • Revenue Streams In books there are many types of revenue streams are mentioned but for entrepreneurs we can innovative hundreds of different types of revenue streams or model's for our own startups so if someone tell you that only 4 or 21 revenue streams are available then that person is very limited but basically nowadays people's are using 4 revenue streams more 1=} Recurring Revenue: Ongoing income coming from subscription type thing like Medial using this model 2=} Transaction Revenue: One-time income from selling particular product like property realestate businesses sold you land , flat or house 3=} Service Revenue: Revenue from providing services like shiv dixit who is providing business reasearch and full fledged strategic planning for business so that's the pure form of selling particular skill as a service 4=} Ad-Based or Data Revenue: Income from advertising like youtube , LinkedIn and many free apps are selling our data for earning • Revenue Formula And It's Calculation So formula and calculation are really important for new founders so learn it perfectly 1=} Basic Formula Formula Revenue = ( Price per Unit × Quantity Sold ) Example — Robot selling price — ₹10 × Robot Total quality sold — 500 Answer — ₹5000 is Revenue 2=} long Revenue Formula ( for many products/services or things It's little bit hard so practice 11 time's Formula = { ( (Price1 × Quantity1) + (Price2 × Quantity2) + ( Price 3 × Quantity 3 ) } = With this formula you can calculate lakhs of product revenue in seconds Example — A Startup sells: 500 units of Product A at ₹100 each 300 units of Product B at ₹150 each 100 units of products C at ₹50 each Revenue = (500 × ₹100) + (300 × ₹150) + ( 100×50 ) = ₹50,000 + ₹45,000 + 5000 = ₹100000 so that's Total Revenue for so many things and learn it carefully because nowadays all the Entrepreneurs are using it everyday • All Revenue Concepts 1=} Gross Revenue Total revenue without deducating any costs 2=} Net Revenue Revenue after deducting returns, discounts, salaries and allowances. Formula: Net Revenue = Gross Revenue - Deductions You can only deduct Sales Returns , Allowances Sales Adjustments and Discounts 3=} Revenue Recognition 1. Earned: The company has fulfilled its obligation to deliver goods or provide services. 2. Realizable: Payment is reasonably assured or measurable Example for a Service Contract: Contract Value = ₹1,00,000 Services to be provided over 5 months. Monthly Revenue = ₹1,00,000 ÷ 5 = ₹20,000/month (if progress is evenly spread) • Revenue-Related Metrics 1=} Revenue Growth Rate Measures how revenue increases over a specific period. Formula: Revenue Growth Rate = [(Current Revenue - Previous Revenue) / Previous Revenue] × 100 2=} Average Revenue Per User (ARPU) The average revenue earned from each customer. Formula ARPU = Total Revenue / Total Number of Users 3=} Customer Lifetime Value (CLTV) The total revenue a business expects to earn from a customer during their relationship Formula CLTV = ARPU × Customer Lifetime (in months/years) • Revenue Methodologies 1=} Revenue Streams Analysis Identify different sources of income and evaluate their contribution 2=} Market Segmentation Break revenue data by customer demographics, location, or product type to understand trends 3=} Predictive Revenue Forecasting Use past data and market trends to estimate future revenue 4=} Revenue Optimization Offer bundled pricing (e.g., 2 products for ₹199 Upselling( tell customers to buy a premium version) Cross-selling(selling related products) • Tools for Revenue Management 1. CRM Software: Manage customer data and identify revenue opportunities (e.g., Salesforce, HubSpot) 2. Accounting Software: Track revenue and expenses (QuickBooks, Zoho) 3. Analytics Tools: Analyze revenue trends ( Google Analytics, Tableau) 🥳You will get 110+ all revenue formula and Man more things in comment section so Learn it in 30 min only✍️