Introduction
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Below is a link to the Knowledge Base from Breaking Into Wall Street. It contains detailed tutorials on most of the things related to finance you'll need to know for investing. They also have Excel worksheets that you can download and work with as you watch the videos.
Financial Modeling Knowlege Base: Free Video Tutorials From BIWS
Revenue
- Breaking down to its simplest parts
- Units x Price
Units
- Is it something that can only be sold once (e.g. physical good) vs. sold over and over again (e.g. piece of software)
- This is recurring revenue when something can be sold over and again
- Looking at the costs associated with each unit is unit economics
- Just think of Shark Tank when they ask "how much does it cost to make one of these?"
- Then you need to consider other costs. How much does it cost to ship? How much does it cost to pay people? Rent buildings? How much of that can be attributed to each product?
- This is an extremely important question because it has the potential to kill a business. Even if something is great, if it costs me 99 cents to make one dollar, then it doesn't matter how cool it is or how good the market is.
Price
Simple explanation of "willingness to pay" and the difference between a premium good vs. a commodity
Nile Hatch & Brian Reschke - How to Set the Right Price
https://vimeo.com/305394750