3 ms·
Revenues are irrelevant. Profits aren't.
by Descartes1 8y ago
Revenues are irrelevant. Profits aren't.
- bjoerns 8y agoRevenue is vanity. Profit is sanity. Cash is reality.
- mikec3010 8y agoThis is a really ignorant thing to say. If you have a hearty revenue stream but no profit, you can tweak the model to make it profitable. Some profits aren't possible at small scales, so having revenue proves you have demand and can lead to safely risking big bucks to get to a profitable scale.
- vageli 8y ago> If you have a hearty revenue stream but no profit, you can tweak the model to make it profitable. I don't think this necessarily follows.
- swalsh 8y agoEspecially in the eCommerce business where you might have a deal with a supplier. It's not unusual to be able to negotiate a higher margin the more you sell. Any single financial metric alone cannot tell the whole story of a business. Revenues are equally as important as profits.
- mkirklions 8y agoYep, this is a reoccurring problem on his blog. Low quality interviews and articles. I believe he has lots of accounts to upvote, otherwise this would be hidden.
- patwalls 8y agoIt's not so black and white. They are both valuable. However, sharing revenue is a consistent theme of my website, like IH. If you read more into the many interviews I've done - you can find many founders talking about profits/margin.