Time to revenue describes the amount of time from the agreement execution prior to the purchase begins to provide revenue or return on investment for the purchase. On a major contract you might have two proposals where Supplier A offers a cost that is less than Supplier B. The hitch is that Supplier A’s proposed time for completion greater than Supplier B’s time. If time got no value you’ll most likely choose the Supplier A so long as the worthiness both provide are similar.
The problem is that point can have a substantial value and that should be taken into in your choice process. When there is significant value to that right time to the income it can easily outweigh the difference in the price. It may have you change your contracting approach also, the conditions that you use and the potential risks you might be willing to take to expedite the work.
I learned all about time to income early in my own career. I handled building contracting for a company and would be handling the contracting for a new production plant located in Hong Kong. The vice president in charge of that creation business called and asked me to talk with him to both go over the project and review our programs. The conference was interesting and he asked me how long everything would take then.
I provide an estimate based on our standard process. His response was simple but strong “too much time”. Then he told me that with that production plant in procedure he’d made enough profit in six months to pay for the whole cost of the building. The faster, maybe it’s got by us built, the more income we’d make. He was concerned about the time to revenue and the profits that would result from the completion. Based on that information we got management approval to take as many steps as is possible to fast track the project.
In some cases there have been cost tradeoffs that needed to be made but each time you compared the difference in cost versus the difference in routine, and the impact to time to revenue its was a simple decision. Time to Market describes the amount of time from the agreement execution before the item purchased can be utilized or sold available on the market alone or as part of another product or service. Should anyone ever worked in a product or service development firm you’ll know that point to market is one of their key objectives. There are explanations why the time to market is important. The foremost is profitability.
If you are first to advertise with a product having specific functionality that existing products on the marketplace don’t have, you may charge a higher price. If you’re past due coming to advertise you will need to discount your price to take market talk about probably. The second thing that being first to market can do could it be can help you lock in customers that use that service or product within their product or service.
- Commitment to working collaboratively and synergistically as one-half of the advisor-client
- Why do you want to focus on the buyside? You will want to the sell-side
- Operates as a person Advocate, with full understanding of products
- Know your trading goals and financial goals
- How will a CEO/founder/owner pick his salary
A classic example of this occurs in the semiconductor business, where if you are first to advertise the customers will lay out their circuit-credit card design to support your specific form factor, mounting strategy and other requirements. Once they do that, if another Supplier comes out with a contending product, it probably won’t be plug-and-play suitable. This means that to use the other Supplier the client would have to feel the cost and expense of relaying out the circuits and sometimes the card to match the various product.
Doing that can help you lock in that customer, and charge reduced that is not a lot that the customer would be willing re-layout the credit card, but enough so you may charge more than the competition. When there is significant value to that right time to market it can easily outweigh a difference in the price. It may also have you change the conditions that you utilize and the potential risks you might be willing to try to expedite the work.
Sometimes time for you to income and time to advertise are difficult concepts for procurement to accept. That’s because most procurement groupings get measured and rewarded based on cost decrease so it’s foreign to them to want to pay more only to get things performed earlier. In reality it’s not a lot different than going to a distributor to purchase a product because they have it and you will need it now neither is it much different that paying an additional charge of fee for expedited control.
As you can view, there are plenty of simple and quick methods for you to start making your cash work for you. If managing your own investments isn’t up your alley, then consult a financial advisor to maximize your specific investment platforms. It’s not possible to eliminate risk completely from investing. However, if you try your hand at investing never, you’ll never reap any potential, long-lasting rewards.
