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Hacker Analysis

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Submitted By mararabai
Words 556
Pages 3
Mariana Arango
April 9, 2011
Professor Hacker
Entrepreneurship
Hacker Paper A revenue driver or growth driver is an explanation of how the company will generate growth in revenue or sales. The revenue driver may also be explained as the method the company will use to reach its customer, and by focusing this strategy the business will therefore focus on a growth driver. Sometimes businesses have a hard time identifying these growth drivers; however there is an easier way to identify the growth drivers, since there is only five in total. These can be easily remembered by using the acronym SANDS: 1. Subscribers 2. Accounts 3. New Locations 4. Distribution 5. Sale force
What are subscribers? These users are the revenue driver when normally a technologically based business focuses on the customer. Some examples are cable companies, cellphone companies and websites. Also, when consumer based businesses based on real estate with a limited location. For example theme parks, hospitals, and utilities. In such businesses the growth of revenue comes directly from the increase of the amount of users, and the customer acquisition cost is a significant use of capital.
What are accounts? This is a revenue driver in business to business sales. Accounts may sometimes confuse individuals into believing that the growth driver is sale force since they are both inter-related; however, the sale force may be viewed as an order taker in the process, and the sale as an account. Normally accounts are large sales to one company; these are normally seen at sub-assembling companies that work for an industrial manufacturer. One good example of accounts is a company selling airplanes to airlines, since the companies provide the parts, training, financing and the sale for the airline companies.
New Locations is when the revenue driver is based on the amount of locations

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