Big Deal Small Business: Revenue Quality (Again)December 10, 2022 | Issue #76If this was forwarded to you, check out the archive and subscribe here.Revenue Quality is clearly one of the most important elements of assessing business quality & downside risk.I've written before about revenue quality, though that time I focused on defining it and how it impacted business valuation & cash flow.But as I run my own business (which is primarily re-occurring revenue on a 2-5 year buying cycle), I think I missed explaining how different each type of revenue can "feel" when you're running it. Specifically, whether your business feels like it "wants" to grow naturally, or if you have to will it to grow with ad spend & effort.Today's post is a bunch of math walking through that to hopefully turn these concepts into an intuitive muscle in your business diligence toolkit. That's why it's a weekend post; grab some coffee.But first! A quick shout-out for SMBash (I'll be attending as well!):SMBash is back! This year’s event is April 27th – 30th 2023, in Austin, TX. If you want to build deep connections with folks in the acquisition entrepreneurship community, join us for three days at 800 Congress in downtown Austin. Just like last year, the event includes panel conversations, live podcast recordings, phenomenal meals, entertainment and MUCH more. Snag your ticket at www.smbash.com.Hope to see a lot of you there!
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Revenue Quality (Again)
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Big Deal Small Business: Revenue Quality (Again)December 10, 2022 | Issue #76If this was forwarded to you, check out the archive and subscribe here.Revenue Quality is clearly one of the most important elements of assessing business quality & downside risk.I've written before about revenue quality, though that time I focused on defining it and how it impacted business valuation & cash flow.But as I run my own business (which is primarily re-occurring revenue on a 2-5 year buying cycle), I think I missed explaining how different each type of revenue can "feel" when you're running it. Specifically, whether your business feels like it "wants" to grow naturally, or if you have to will it to grow with ad spend & effort.Today's post is a bunch of math walking through that to hopefully turn these concepts into an intuitive muscle in your business diligence toolkit. That's why it's a weekend post; grab some coffee.But first! A quick shout-out for SMBash (I'll be attending as well!):SMBash is back! This year’s event is April 27th – 30th 2023, in Austin, TX. If you want to build deep connections with folks in the acquisition entrepreneurship community, join us for three days at 800 Congress in downtown Austin. Just like last year, the event includes panel conversations, live podcast recordings, phenomenal meals, entertainment and MUCH more. Snag your ticket at www.smbash.com.Hope to see a lot of you there!