Startup Funding Espresso Components of Revenue
Components of Revenue Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Revenue or sales stands for the amount of funds a company earns. This comes from the goods or services the company sells. This is often called Gross Sales or Total Sales as it\u2019s the total amount of the proceeds. Net sales are the gross sales minus any returns, discounts, or other price reductions offered to customers such as rebates. The cost of goods sold is the cost to produce the goods or services. In a consumer product goods company, it\u2019s the cost to build the product. In a SaaS business, it includes the cost of servers and software used to provide the service.\xa0 Gross margin is the Net Sales minus the cost of goods sold.\xa0 Gross margin percent is calculated as gross margin over total sales. This is a key factor for many investors as it represents the amount of funds you have available for sales and marketing. The higher the gross margin, the greater the capability of the company to sell it. Finally, there\u2019s the cost of sales.\xa0\xa0 These are the costs directly related to selling the product such as commissions. It\u2019s important to understand these elements in calculating your sales and presenting them to investors.\xa0 \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .