What type of revenue window does your start up have? Is it open in business hours, opens at night, weekends only, or is there a nice cool breeze blowing in 24/7?
Revenue Window:
Definition: Amount of potential transaction time a business has with end use consumers, not customers.
Focus on the italics above.
You’re probably thinking the longer it is open the better, right? Well it depends. If you can trade 24/7 trading with consumers and be overhead neutral, then yes, more is more.
However, if that revenue window brings with it increased overheads, then you need to optimise. Too many start ups get it wrong by leaving their window open, and they just get robbed… literally of cash.
On the flip side, many will get into a start up that trades heavily when the window is open, but it only opens sporadically… (such as a bar, you’re only trading Friday, Saturday & Sunday nights, but you’re paying rent all week!)
What type of start up can you have where the revenue window is always window open for you, at someone else’s cost?
This is where the internet is a true revolution, It is extremely efficient as it can be turned on like a tap when consumer’s need it without costing anyone too much in the downtime.
Totally agree and that is what I was intimating. But aiming for my readers to put the pieces together. The net is perfect becasue the doors never shut and all the margin is yours. Retail partners can have the effect of a larger revenue window, but it comes at a margin sharing cost.