Revenue Window

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?

Never Ever…

…buy a legal entity to facilitate your start up. Even if two start ups decide to collaborate. You never know what is hidden within it.

Sure, buy assets, buy components, factories, packaging, formulas, IP, software programs. Buy all these things from other start ups to pool resources. Yes, collaborate, merge. But never become part of their corporate entity.

When you buy into their entity, you also buy their liability. This applies for any previous corporate misdemeanor.

Simple answer, create a new entity. Then both parties can bring the relevant assets and IP to the table. If the other parties intentions are honorable they wont have an issue with this.