#Estimate yearly sales for storyist drivers

There are a number of different roads you can go down with revenue drivers - tailor your approach based on what you have to offer. Which channels are responsible for revenue growth? Then you can start scheming about new revenue drivers. Diligently examine your company's financial statements: observe which internal processes or aspects of your product are responsible for top-line revenue growth, which aspects are causing decreases in revenue, and how your long-term outlook is shaping up.

What to analyze when looking at revenue growthĪnalyzing revenue growth doesn't just mean thinking of new ways to bring money in through every existing and potential channel possible. Company B started lower, with less month-on-month growth, but because their churn is absolutely under control, it doesn't take long for them to overtake Company A. Company A's revenue growth might be high, but its churn is so high that their MRR is going down. Over time, a subscription company with lower revenue growth and a controlled churn rate will be more stable than one with high revenue growth and a high churn rate.Ĭompany A has invested more directly into revenue growth than Company B, and for the sake of argument let's say both companies are getting customers at the same rate. You'll continually be playing catch-up due to the customers you're losing. Once you pass even relatively low rates of churn, adding new customers won’t be enough to see stable revenue growth. If left unchecked, churn eats away at your revenue growth.

If growth appears to be flagging, the instinct is to devote more resources and analysis to replenishing that cash flow than to anything else. Often, SaaS companies prioritize revenue growth over churn because it satisfies certain superficial requirements (meeting overheads, etc.). How revenue growth is different for subscription businessesīecause subscription businesses depend on winning and consolidating recurring revenue, they need to factor in churn in order to understand their revenue growth.

Estimate yearly sales for storyist