Revenues, Costs and Profits

The Founder Institute
Paul Reverter Jones 22-1-13

Making money is not easy… … but its necessary

My experience: Service delivery income structures

Gross Margin Contribution Detail
% income Projects Maintenance Professional services Dedicated teams Licences Hosting Consulting 40 15 15 10 5 10 5 Margin income/100 Gross margin contribution 0,9 36 -4 1,05 15,75 0,75 1,05 15,75 0,75 1,1 11 1 1,3 6,5 1,5 1,3 13 3 1,5 7,5 2,5 Total 5,5

Gross Margin Contribution Detail

• But we don’t normally start like that…

• Gross margin contribution. Service startup

• So how do we earn money? Or even survive?
– Initial investments: partners personal income, third party investments,… – Control your costs (the right person) and update your budget accordingly – Work below “organizational break-even” – Subcontract – Concentrate on the “popcorn” – Work very very hard….