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-publishDate: 2024-03-13T00:00:00Z
+publishDate: 2024-02-28T00:00:00Z
 title: What Investors Want
 excerpt: 'This blog entry discusses the most critical business metrics for success in Consumer Packaged Goods (CPG):  Gross Profit Margin, Trade Spend, and Gross Profit.   Controlling these are a requirement for investor interest and for a healthy business.'
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 image: "~/assets/images/Cut_Dollar.jpeg"
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-Published on: 2024-02-28
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 Last week, we said that a high gross margin is the most important quality of a successful business.   Indeed, most venture capitalists’ first question is about the gross margin.   I have had venture capitalists summarily end the conversation if the answer is insufficient.  Let’s unpack and discuss this.   Let’s define a few terms first.  Please note that these definitions do not necessarily agree with standard accounting definitions.
 
 **Sales** is defined as the amounts that customers are invoiced.  Again, please note that an accountant would not accept this definition, and would instead insist that sales is defined as what customers pay, which may be quite different if there are returns and allowances.   However, most business owners like to think of sales as what they invoice, so we’ll use that here.