Entrepreneurs, Trust and Money

It might sound obvious, but if you’re running a business, you should aim to bring in revenue that exceeds the costs of running the business. It’s a point that panelists at New York Entrepreneur Week today at Columbia University felt they needed to reiterate, which may indicate that entrepreneurs are losing sight of what’s important in creating a successful business: income that will allow your business to grow.

“It’s a very simple thing to say,” said JP Werlin, Downtown Ecommerce Partners. “But it runs contrary to what you’re taught in the venture capitalist industry, but – ‘no expenses before revenue,’ it’s a mantra we have internally in our company and it’s helped us get to where we are today.” Downturn Ecommerce Partners, which makes software for salespeople, never raised venture capital, but developed a company structure that allowed it to build slow and scale based on the revenue they brought in – not on spending money raised from investors.[Read more]

--Posted by Laura Rich, RecessionWire.com

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