Integrity compounds faster than revenue.
Dave Berkus
CogLab UC Berkeley
Hello CogLab,
Businesses live and die by profit, derived from revenues. Here's something to think about when calculating the value and durability of any business. Please read on...
Tuesday, February Third, 2026
Integrity compounds faster than revenue.
I've watched more than a few CEOs face the same choice. Hit the quarterly number by cutting corners, or miss it by doing things right.
Most choose the number. And most regret it.
I sat on a board where the CEO recognized revenue early to make his projections. Technically defensible. Practically sketchy. He made his number. The board was pleased. Investors were happy.
Six months later, customers started complaining. The product hadn't delivered what was promised. SaaS Renewals tanked. The sales team couldn't close new deals because references were calling prospects to warn them.
That CEO spent the next two years rebuilding trust. We never got that momentum back.
Compare that to another CEO I backed. Three quarters into the year, he told the board we weren't going to hit our revenue target. A key customer had churned. The pipeline rebuild would take time.
The board was not happy. Some investors wanted him out.
But he refused...To read the rest of this post, please click here to Dave's blog.
EVENTS, TV and VIDEOS
Dave's YouTube channel:: "Startup Masterclass from Dave Berkus"
Dave's TEDx talk: "Smiling at success, laughing at failure."
The"Berkus Method" of valuing early stage businesses
SELECTED BERKONOMICS POSTS
* You are watched, mostly when decisions are tough.
* The lion and the ant: A managerial lesson.
* OUCH! If only I had learned this before losing millions.
THIS WEEK'S FEATURED BOOKS BY DAVE:
The three BERKONOMICS books for entrepreneurs, CxO's, management and their board
members and investors. Each is divided into 101 easy to read insights with
Dave's stories from his 50+ years of experience on both sides of the business
aisle.
Available as a Kindle book and as a soft cover book on Amazon's bookstore.
Check out all 31 variations of the 13 books, audio books, and Kindle publications from the Berkus Press by clicking the box below:
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