Why is Net Revenue Important?
It is important for a business to understand net revenue because it shows them the real amount of money their company is making after all the necessary reductions. It is also important information for anybody thinking of investing in the company and anyone trying to put an evaluation on the business. When approaching any lender or trying to sell a company one of the first things that these people will want to know is the net revenue. Anyone who has ever seen the TV show the Dragon’s Den will notice how the dragons get annoyed when aspiring entrepreneurs can’t provide this figure.
