Posts Tagged ‘Automate’

Is Your Revenue Model Automated?

The purpose of this element is to determine whether or not the company can automate the revenue model. Transactions and sales take time (time is money); even retailers spend a fortune on making checkout happen just a few seconds faster. For a business to successfully scale and grow, a turn key sales process will prove invaluable. If each transaction requires many human hours and long contractual negotiations then the revenue model will surely suffer.

Transactions that happen automatically without any human interaction (web sales) are certainly the most effective in terms of volume of transactions. The ability for a company to sell its wares at any time makes sure they are leaving no money on the table. A key to speedy growth is the ability for a business to sell their stuff 24/7/365.


Quick simple transactions that make sense to the consumer are more likely to achieve smooth predictable growth than an overly complicated model or processes. If the transaction process is overly manual, time consuming or difficult, than even the best unit economics may start to break down quickly.

Some key questions we ask when taking an in-depth look at a new venture’s ability to automate their revenue model: Does the business have a long sales cycle (>90 days)? Can it make money quickly (<5 days) without any human interaction?

This is just one of the key criteria forward-thinking investors use when evaluating the strength of entrepreneurs and their new ventures. How do you measure up? Go to www.venturephenomeproject.com to read all 80 criteria and swap knowledge with other entrepreneurs & investors.


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