#RevenueOperations

[thinkrevops]

RevOps Solutions That Drive Real Growth

Tired of siloed teams and messy data? It’s time to align sales, marketing, and customer success with strategic RevOps solutions.

ThinkRevOps brings fractional expertise, data-backed strategy, and platform-agnostic execution to streamline your entire revenue engine.

✅ GTM strategy ✅ Tech stack alignment (Salesforce, HubSpot, custom stacks) ✅ Forecast-ready reporting ✅ End-to-end automation

💡 Whether you’re a scaling startup or a mature B2B brand, we help you grow smarter — not just bigger.

👀 Explore the full solution at ThinkRevOps.com/RevOps-Solutions

revops consultant

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Accelerate Your Sales: Mastering the Art of Sales Pipeline Velocity

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#RevOpsSummit2025

#RevenueOperations

#RevOps2025

#RevOpsCommunity

#RevenueGrowth

#FutureOfRevOps

#RevOpsStrategy

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Understanding Revenue Generation:

Revenue generation encompasses a wide range of activities aimed at increasing a business’s income streams. It involves the identification, attraction, and retention of customers, all while maximizing profitability. To excel in revenue generation, it is crucial to take a comprehensive approach that integrates various elements of marketing, sales, and operations.

Generating revenue requires a multifaceted approach that includes market research, targeted marketing efforts, customer engagement strategies, and continuous adaptation. By utilizing insights gained from market research, businesses can effectively identify opportunities, attract and retain customers, optimize profitability, and stay ahead of the competition in a dynamic business environment.

[salesforcesblog]

🚀 Is your business ready to grow smarter, not harder?

At Astreca, we help B2B companies align marketing, sales, and operations to drive real, measurable growth. Whether you’re struggling with disconnected systems or unclear ROI, we’ve built a roadmap to help you scale confidently. ✨ Explore our new growth-focused landing page: https://lnkd.in/dE2sF3-u ✅ Strategic Growth Planning ✅ Systems Integration ✅ Tailored Business Solutions Let’s simplify growth and build a smarter path forward—together. hashtag#B2BGrowth hashtag#BusinessStrategy hashtag#RevenueOperations hashtag#MarketingAutomation hashtag#Astreca hashtag#GrowthPartners

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Revenue Operations Software Market Projected to Hit $12.8B by 2033 with 10.4% CAGR

Revenue Operations Software Market : Revenue operations (RevOps) software is revolutionizing how businesses align their teams, optimize processes, and drive consistent revenue growth. By centralizing data across sales, marketing, and customer success, these platforms provide seamless collaboration and actionable insights. With features like forecasting, pipeline management, and analytics, RevOps software eliminates silos, ensuring that every department works towards shared goals. Businesses leveraging these tools experience enhanced efficiency, improved decision-making, and accelerated growth — all while delivering exceptional customer experiences.

To Request Sample Report : https://www.globalinsightservices.com/request-sample/?id=GIS32481 &utm_source=SnehaPatil&utm_medium=Article

The rise of advanced technologies like AI, machine learning, and automation is taking RevOps software to new heights. Predictive analytics and real-time reporting empower organizations to identify trends, adjust strategies, and maximize ROI. As markets grow more competitive, adopting a robust RevOps platform is no longer optional — it’s essential for sustained success. Whether you’re scaling a startup or optimizing an enterprise, revenue operations software is the key to staying ahead in today’s fast-paced business environment.

#RevOps #RevenueOperations #BusinessGrowth #DataDrivenDecisions #SalesEnablement #MarketingAlignment #CustomerSuccess #PredictiveAnalytics #AutomationTools #RevenueGrowth #CRMIntegration #BusinessOptimization #TeamCollaboration #SalesForec

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Understanding What Constitutes a Good Operating Margin

Good Operating Margin

When it comes to evaluating a company’s financial health, one of the most important metrics to consider is the operating margin. This figure provides a clear picture of how efficiently a company is managing its core business operations to generate profit. For business owners, investors, and financial analysts alike, understanding what constitutes a good operating margin can help assess a company’s profitability and long-term viability.

In this article, we will explore the significance of operating margin, factors influencing it, and what can be considered a “good” operating margin across different industries.

What is Operating Margin?

Operating margin, also known as operating profit margin, measures the proportion of a company’s revenue that remains after covering operating expenses such as wages, rent, and cost of goods sold (COGS). It is an essential indicator of a company’s ability to manage its day-to-day operations efficiently while still generating a profit.

The formula to calculate the operating margin is:

Operating Margin=(Operating IncomeRevenue)×100\text{Operating Margin} = \left( \frac{\text{Operating Income}}{\text{Revenue}} \right) \times 100Operating Margin=(RevenueOperating Income​)×100

This percentage reflects how much of each dollar of revenue is left after paying for variable costs of production, such as labor and raw materials. The higher the operating margin, the more efficiently the company is running, and the better its potential to be profitable.

Why is Operating Margin Important?

Operating margin provides insight into a company’s operational efficiency, which is critical for both managers and investors. Here are some key reasons why it matters:

Indicator of Profitability: It shows how much profit a company makes on each dollar of sales after covering its operating costs but before taxes and interest expenses. A higher operating margin indicates that a company is generating a good return on its revenue.

Comparison Across Companies: Investors often use operating margins to compare companies within the same industry. A company with a consistently high operating margin is generally more attractive because it indicates better management and cost control.

Resilience in Economic Downturns: Companies with strong operating margins can better withstand economic downturns or market volatility. Even if revenues drop, a company with a high margin is likely to remain profitable.

What is Considered a Good Operating Margin?

The definition of a good operating margin can vary widely depending on the industry. For some industries, a 10% margin might be considered strong, while others might expect margins of 20% or higher. Here are some general guidelines for understanding what constitutes a good operating margin:

5% Operating Margin: This is typically considered a low margin, indicating the company may struggle with profitability or have higher-than-average operating expenses. Businesses in highly competitive or cost-intensive industries, such as retail or manufacturing, might fall into this range.

10% Operating Margin: A margin around 10% is average for many industries. Companies that maintain this margin are usually operating efficiently but still face moderate costs or competitive pressures.

20%+ Operating Margin: A margin of 20% or higher is often considered excellent, especially in industries like software, pharmaceuticals, or luxury goods where there are fewer competitors, high demand, or strong pricing power.

Industry-Specific Benchmarks

Operating margins are highly dependent on the industry in which a company operates. Let’s look at some specific industries and their typical margin ranges:

Retail: Retailers often operate on tight margins due to high competition and price sensitivity among consumers. Operating margins of 2% to 8% are common in this sector, with anything above 8% considered excellent.

Technology: In industries like software development and IT services, operating margins are typically higher due to low variable costs once a product is developed. Margins between 20% and 40% are common, and anything above 40% is outstanding.

Manufacturing: This industry generally sees margins in the range of 5% to 15%. However, companies that manage to automate processes or control material costs effectively can push their margins higher.

Pharmaceuticals: Due to high product demand, patent protection, and the ability to charge premium prices, pharmaceutical companies often have very high operating margins, sometimes exceeding 25%.

Energy and Utilities: These sectors tend to have modest operating margins, ranging between 10% and 20%, due to heavy regulatory oversight and high capital expenditure requirements.

Factors That Impact Operating Margin

Several factors can influence a company's operating margin, either positively or negatively:

Cost Control: Companies that manage to keep their operating expenses in check without sacrificing quality or productivity tend to have better margins. This includes controlling labor costs, rent, and the cost of goods sold.

Pricing Power: Businesses that have strong pricing power (i.e., the ability to set prices without losing customers) can maintain higher operating margins. This is often seen in companies that offer unique or high-demand products.

Economies of Scale: Larger companies that produce goods or services at a large scale often benefit from lower per-unit costs, leading to better operating margins.

Market Competition: In highly competitive industries, companies may have to lower prices or invest more in marketing and customer acquisition, which can negatively impact margins.

Product Mix: A company’s product mix can also affect its margins. For instance, businesses that sell high-end products or services usually enjoy higher margins compared to those focused on low-cost or commoditized offerings.

Improving Your Operating Margin

If you're a business owner or manager looking to improve your operating margin, here are some strategies to consider:

Increase Prices: If your company has strong demand or unique offerings, consider raising prices slightly to boost your margin. Just ensure that this won’t negatively affect sales volume.

Cut Unnecessary Expenses: Review your operating costs and eliminate unnecessary expenditures. This could include renegotiating contracts with suppliers, automating certain tasks, or reducing energy usage.

Streamline Operations: Look for inefficiencies in your production or service delivery process. By streamlining operations, you can often reduce costs and improve your operating margin.

Focus on High-Margin Products or Services: If possible, shift your focus toward products or services with higher profit margins. This may involve launching premium product lines or discontinuing lower-margin offerings.

Improve Sales Volume: Sometimes, the key to better margins is simply increasing sales without increasing costs proportionally. Focus on marketing and sales strategies that can help you boost revenue.

Conclusion

Understanding and maintaining a good operating margin is crucial for the long-term success of any business. While what qualifies as “good” can vary widely by industry, the general rule is that higher margins indicate better efficiency and profitability. Business owners should regularly monitor their operating margins and implement strategies to improve them when necessary.

By focusing on cost control, optimizing pricing strategies, and improving operational efficiency, businesses can not only maintain healthy margins but also create a sustainable competitive advantage in the marketplace.

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In order to create this post, I've done many hours of research about US tax law. If you find this post informative or interesting, PLEASE upvote the original post on /r/Tax so that it can move up the page to be seen and critiqued by more tax attorneys.https://www.reddit.com/r/tax/comments/ayzptc/is_this_the_best_corporate_structure_for_a_us/To save time and attorney's fees, I've been doing extensive research on corporate structures and the location into which intellectual property should be born in order to best minimize future tax liabilities. I've wargamed many scenarios and wanted to get feedback on the two most promising structures before I retain a tax planning attorney. I am now finishing writing up the main patent and thus need to figure out the future corporate structure in order to do a zero-basis assignment shortly after the company is incorporated.Note: There is a glossary of tax jargon and abbreviations used at the bottom of this post.Strategy 1 - Section 1235Initially: Wyoming LLC (assigned the main patent)Later: Delaware C-Corp subsidiary of the LLC, with the C-Corp having a British Virgin Islands (BVI) Controlled Foreign Corporation (CFC) subsidiary holding other IP (trademarks, copyrights, etc.) and the BVI CFC having a check-the-box "disregarded entity" subsidiary in the country of manufacturing (China or Vietnam).ProsMuch simpler, quicker and easier initial setup - Just a Wyoming LLCAsset sale friendlyCan use Section 1235 to minimize taxes on an asset sale of the companyC-Corp allows for 100% dividends received deduction from BVI CFC distributionsDisregarded entity CFC in the country of manufacturing prevents triggering Subpart F on overseas salesOverseas revenue can be used to fund overseas manufacturing without repatriating the fundsCan stash excess profits overseas rather than distributing them or getting hit with Accumulated Earnings TaxCan use overseas IP and transfer pricing to minimize U.S. tax dueSeparating assets to be sold and assets to be kept is extremely easy and can be done at company sale timeConsVCs may be wary of an LLC holding key IP, even if there were contracts in place binding it to the corporationMain IP in the U.S. may inhibit some advanced tax-minimizing IP revaluation strategies such as the "Green Jersey"GILTI on overseas incomeBEAT becomes a factor above $500 million gross revenueOperating taxes from U.S. sales: Between salaries, overseas IP royalty payments, and transfer payments for goods, probably minimal.Operating taxes from overseas sales: Minimum 10.5% (GILTI), unless exotic strategies like the so-called "Green Jersey" are employed.Tax due upon asset sale of company: 20% (Section 1235 capital gains) + 3.8% (NIIT) + possible 13.3% (if a California resident at the time) = 23.8% / 37.1% (with proceeds distributed, not locked in a corporation)Strategy 2 - Similar to Strategy 1, but without LLC and all IP stored in the zero-tax CFCDelaware C-Corporation, with a British Virgin Islands (BVI) CFC subsidiary holding all IP (patents, trademarks, copyrights, etc.) and the BVI CFC having a check-the-box "disregarded entity" subsidiary in the country of manufacturing (China or Vietnam).ProsMore VC friendly due to the lack of the LLCIP held overseas may be more attractive to the acquiring corporationC-Corp allows for 100% dividends received deduction from BVI CFC distributionsDisregarded entity CFC in the country of manufacturing prevents triggering Subpart F on overseas salesOverseas revenue can be used to fund overseas manufacturing without repatriating the fundsCan stash excess profits overseas rather than distributing them or getting hit with Accumulated Earnings TaxCan use overseas IP and transfer pricing to minimize U.S. tax dueConsNot asset sale friendlyProfits on sale of the IP (asset sale or reverse triangular merger stock sale) are stuck in the corporation and can't be extracted without double taxationGILTI on overseas incomeBEAT becomes a factor above $500 million gross revenueOperating taxes from U.S. sales: Same as Strategy 1Operating taxes from overseas sales: Same as Strategy 1Tax due upon asset sale of company: 21% (Proceeds locked in a corporation). Corporate dividends taxed at anywhere from 0% to 37.1%, depending on the amount distributed and state of residency. Worst-case combined tax rate: 39.8% or 50.3% (California residency).Tax due upon stock sale of company: 0% (Proceeds locked in a corporation). Corporate dividends taxed at anywhere from 0% to 37.1%, depending on the amount distributed and state of residency. Worst-case combined tax rate: 23.8% or 37.1% (California residency).Goals for this corporate structurePrimary Goal: By preplanning the compan(ies) structures and the "birthplace" of intellectual property (onshore or offshore), minimize the taxes levied when the core "consumer device" company gets bought out in 2-5 years.Primary Goal Notes: I have no need to "cash out" - If the money stays locked in a holding corporation where I can use it to start new companies, that is perfectly fine by me.Secondary Goal: Structure the companies in such a way that side technologies not directly related to the core "consumer device" product are created in a separate company (perhaps a holding company) and can be spun off into separate companies with minimum tax burden.Secondary Goal Notes: Non-core technologies developed during the course of development of the primary product should be segregated from the core "consumer device" company so that they are not part of the acquision. Obviously, this is a moot point in the case of an asset sale, but in the case of a stock sale the sold IP should be separated from the retained IP in a tax-free manner. This may be as simple as doing something like creating a subsidiary, transferring the IP to be sold into it, and doing a reverse triangular merger of the subsidiary.Tertiary Goal: Minimize taxes during the operating years before the core "consumer device" company gets bought out.Tertiary Goal Notes: Sales are expected to be 50% US, 40% EU and 10% rest of world. Minimize overall tax burden, possibly through FDII or CFCs using "check the box" elections. Perhaps having the IP be born offshore and having a US-based parent C-corporation pay licensing royalties to CFC for offshore IP.Quaternary Goal: Stockpile cash in the corporation and avoid having to pay forced dividends due to Accumulated Earnings TaxQuaternary Goal Notes: My previous Kickstarters were profitable and cash flow positive from day one, as I expect this one to be as well. This goal can be accomplished with a CFC.BackgroundUS citizen and resident of California for tax purposes, although I've lived outside of the US for the last 5 years (China) and can transfer residency to any other state or country at will, as I have no binding ties to California (house, real estate, etc.)I have funded all R&D thus far from internal savings, and will take this product up to and through the Kickstarter with internal savings as well (bootstrapped).Manufacturing will be outsourced to contract manufacturers in China or Vietnam (depending on how the tariff situation works out).Venture Capital will be considered after the Kickstarter if the VC(s) can greatly increase the valuation of the planned buyout (see next item). If not, it will grow organically on cash flow.End goal is to sell out to large consumer goods conglomerate in 2-5 years.JargonThere is a lot of tax terminology in this post. Here are some definitions:Accumulated Earnings Tax: A tax of 20% applied to earnings in excess of the "reasonable needs of the business" (generally considered to be $250k) which are not distributed to the corporation's shareholders via dividends.Basis: The value of an asset. Since the value of a completed patent application is zero (patent hasn't been granted yet), it can be assigned to a newly-formed company tax-free.BEAT: Base Erosion & Anti-Abuse Tax. A tax introduced with the TCJA designed to discourage US companies from shifting US-sourced profits to their CFCs.C-Corp: Short for C-Corporation. One of the major types of business entities in the US. Venture capitalists like to see C-Corps incorporated in the State of Delaware because the Courts there are very efficient and business-friendly. Profits of C-Corporations are taxed twice - Once when the money comes into the business, and once more when it is paid out to the shareholders on their personal taxes.CFC: Short for 'Controlled Foreign Corporation'. A non-US corporation controlled by US entities. There are many regulations that apply to CFCs.Disregarded Entity: A choice (known as an "election") made with the IRS in order to have a company "disappear" for income tax purposes. A "disregarded entity" CFC in a foreign country can be used to avoid tax problems from one CFC selling to a related CFC.FDII: Foreign-Derived Intangible Income. The "carrot" counterpart to GILTI is a reduced tax rate designed to encourage companies to keep their intangibles (primarily IP) in the US.GILTI: Global Intangible Low-Taxed Income. A tax introduced with the TCJA designed as a "stick" to discourage US companies from shifting intangibles (primarily IP) outside of the US to avoid US taxation.IP: Intellectual Property. Patents, trademarks, copyrights, schematics, source code, etc.IRS: Internal Revenue Service. The tax collecting agency of the United States federal government.LLC: A simpler form of corporate structure that provides limited-liability protection, requires less paperwork, and isn't double-taxed like a C-Corporation.Section 1235: A section of the US tax code that allows individual inventors and their investors to enjoy long-term capital gains tax rates on the sale of a patent, even if it's held for less than a year.Subpart F: A section of the US tax code that applies to CFCs. Its main purpose is to prevent deferral of taxation on foreign-derived income.TCJA: The Tax Cuts and Jobs Act. Formally known as Public Law 115–97, it was a wide-ranging series of tax reforms passed at the end of 2017. The most notable corporate feature of the law was moving to a flat 21% corporate income tax rate.

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Customer Retention: The Secret Sauce to Sustainable Business Growth

[salesforcesblog]

Solving Global Pricing Challenges with Automation – A Real-World Case Study

Global companies face a unique set of challenges when managing pricing across diverse markets. Our latest success story showcases how Astreca helped a leading technology provider overcome complex pricing hurdles through intelligent automation and Salesforce CPQ solutions.

💡 The Challenge: From handling region-specific pricing to managing special discounts, approval bottlenecks, multi-currency support, and historical data preservation, the client needed a streamlined, scalable pricing infrastructure. Manual processes were creating delays, inaccuracies, and inefficiencies across the board.

🚀 The Solution: Astreca implemented a multi-layered solution, including:

Dynamic, geo-targeted price books

Automated approval workflows for non-standard discounts

Seamless support product bundling

Automated uplift fee application for multi-year contracts

CPQ configuration supporting multiple currencies (USD, EUR, GBP, AUD, SGD, CAD)

Accurate, automated quotation templates for faster deal closures

✅ The results? Increased operational efficiency, reduced errors, faster sales cycles, and a pricing engine that adapts to rapidly changing markets.

🔗 Explore the full case study: https://astreca.com/case-studies/market-specific-pricing-strategies/

#SalesforceCPQ #PricingStrategy #B2BSaaS #DigitalTransformation #Astreca #CaseStudy #RevenueOperations #QuoteToCash #Automation #MultiCurrency #GlobalPricing #SalesEnablement