Companies that fail to generate revenue consistently don’t stick around for very long. I’m not saying that they necessarily need to be profitable right away, though. Heck, Amazon was founded in 1994, first traded publicly in 1997, and didn’t turn a profit until 2001.
However, money does need to flow into the company to keep the lights on and pay the employees. Money also fuels growth, and growth determines survival.
During my years of working inside large corporations and small startups, I noticed something:
Those who control how money flows into the company have the most power.
Those who couldn’t tie their work to revenue were always struggling to claim their power. They were seen as a “cost center.”
When the company had to save money, they never touched the “moneymakers” (e.g., Sales, Advertising, Marketing). They laid people off in the cost centers (e.g., Design, Accounting, HR, IT).
“A cost center is a department or function within an organization that does not dir…