Yup. Something is only worth what someone else (i.e., The Market) is willing to pay for it. You can stack up a ton of customers and revenue but if no one else wants it...sorry...no value.
At the extreme, imagine all these social media "creators". In some cases, tons of revenue. But their revenue-producing-hobby is such that no one could take the torch and carry on. If that person is abducted by aliens, the company also disappears. No one else can buy it and carry on. That is, no value created.
I'll keep repeating this:
Revenue !== value
Entrepreneurs create value. Not revenue. Value.
The problem with this thread seems to be that people are confusing revenue with value. If it was about revenue, then the definition would say that. It specifically says value.
> Revenue actually is value (a subset of it) delivered to the business's customers. Enterprise value is a different thing. It's an important thing, but it's totally possible to have a business that delivers immense value to its customers and has very low enterprise value. We generally call these "not great businesses," but that doesn't make them not businesses.
Not really, revenue is not value. It's used as a proxy but it's not a true indicator of value. An extreme example, LOADS of revenue but also loads of expenses (i.e., not profitable). Is that "creating value"? I think not.
Or again, the "influencer" model. TONS of revenue but when was the last time you heard of such a person selling? They're not because there's no value. The influences walks away, the house of cards collapses. No one is going to pay for that. So, sorry, no value - regardless of revenue.
Therefore, if you ever want to know the value of your business as a reflection of the alleged value it creates, put it up for sale (or sell shares). You will quickly find out if you're actually creating value or not, or at least someone thinks you have the potential to create value. But that isn't revenue.
That's it. You want to measure value? Then be prepared to ask the market (i.e., exit) Anything else is a proxy, a deception, or something you tell yourself to make yourself feel good.
