What Is Total Business Revenue?

revenue total business revenue Jul 14, 2022

A question that comes up often is what is total business revenue and why is it important that we understand that number in our business?

So just to take a step back inside every business, there's a whole bunch of critical drivers or key performance indicators that really drive high level performance inside a business. One of the easiest numbers to track inside our business is our revenue number.

So why is it the easiest?

Because it's our top line sales figure. It's not having to understand the detail of how it all comes together, but it's the top line item that we can understand. Price times quantity equals revenue. So it's a really great, simple driver that drives the top level of performance inside our business. And a lot of businesses, if they understand their gross profit margin and they understand the expenses that are in their business and they can keep a constant financial model, what happens is the revenue becomes the key target that they can drive, which will increase the profitability in their business.

So why is revenue so important?

Because this is an easy, measurable, distinctive item on your profit and loss statement. That will help you understand how to grow, how to drive more profits and become even more financially successful in your business.


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