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What is revenue growth?

When asked what the engine of your business is? What is the first thing that comes to mind; is it marketing or sales? Both answers are correct as both these functions within your business has a large focus on business revenue. Revenue as explained on Wikipedia is “In accounting, revenue is the income or increase in net assets that an entity has from its normal activities. Commercial revenue may also be referred to as sales or as turnover. Some companies receive revenue from interest, royalties, or other fees.”

The word activities and sales are used of which becomes more broader and will be explained in the following way:

  • A business needs to make profit to be sustainable
  • Sales are crucial in any business
  • Marketing as a business function is the drive behind sales
  • Marketing and sales are both revenue growth activities that each business has to consider

Going back to the first question, how would you define revenue growth?