Q&A: Revenue Build Up for WSO users

Hi all, I thought I’d give back to WSO by sharing with aspiring monkeys a few examples of how to do a granular revenue build up for some obscure industries / companies. This may be helpful for PE and Ib interviews. Without further Ado:

**Biz 1: construction equip rental provider**

# of days used * rent / price / day

# of days used = total number of pieces in stock * avg number of days rented / construction project / piece * avg number of construction projects / yr

**Biz 2: national chain with 10 locations providing outsourced services**

# of stores * revenue / store
Rev/ store = # of sales reps * revenue / sales rep
Revenue / sales rep = # of hours billed * hourly billing rate

**Biz 3: digital media co providing lead generation services**

# of customers (don’t forget churn) * avg number of campaign / customer / yr * revenue / campaign

Revenue / campaign = # of pages served * avg click through rate * cost / click

**Biz 4: co that provides complex networking solutions to businesses (communications)**

# units of manufactured * % sold * price / unit
# of units manufactured = capacity * utilization
# of units sold = # of customers * avg order size (units) * order frequency

**Biz 5: outdoor advertising / digital billboards**

Total # of billboards * # of times billboards rented / yr * # of days billboard rented / campaign * price of renting billboard / day

Hope this is somewhat helpful. Pls let me know if you have questions.