Founder and CEO of Gotransverse. A 25-year veteran of global enterprise software with a focus on monetization.
In any business, cash is king, and no matter your revenue model, generating sales is meaningless if you can’t collect the money. While showing consistent growth is essential, maintaining shorter time to cash is critical because cash keeps the lights on.
With more organizations adopting recurring revenue and pay-as-you-go billing, the time-to-cash problem is frequently more acute. Recurring revenue introduces monthly recurring revenue (MRR), a normalized measurement of recurring revenue, typically measured as a constant value in each month of the subscription period.
Even with MRR billing, it’s still important to focus on cash flow. MRR shows you the value of your subscriptions (i.e., your sales), while cash flow is the measure of money flowing in to support business operations. With MRR, your objective is to shorten time to cash and maintain