Thinking About Revenue
Now, let's shift our focus to revenue — the money your business earns through products, services, or other strategies. Revenue is crucial for every type of project, but it looks different depending on what your project is trying to achieve.
What Is Revenue?
Revenue is your business earnings — the total money that comes in from customers, supporters, or partners.
Different projects need different revenue strategies:
| Project Type | Revenue Approach | |-------------|-----------------| | For-profit projects | Revenue matches the business model — sales, subscriptions, licensing, ads | | Non-profit projects | Revenue supports the mission — grants, donations, membership fees, program fees | | Government partnerships | Revenue aligns with public service — contracts, government grants, public-private partnerships |
Aligning Finance with Objectives
The most important principle: align your financing approach with the specific goals of your project.
- If your goal is generating profit, your revenue strategy should focus on sales and business growth
- If your goal is making a positive social impact, your revenue strategy should focus on donations, grants, and mission-aligned fees
- If your goal involves government collaboration, your revenue must align with public service accountability
Misaligning your revenue approach with your project's goals creates confusion — both for you and for your funders, customers, or donors.
Key Takeaway
Revenue is not just about making money. It's about creating a sustainable flow of resources that allows your project to keep doing what it was designed to do. The right revenue strategy depends entirely on what your project is trying to achieve.