Summary:
- This article discusses the concept of "installed base" and how it can act as a "P&L shock absorber" for businesses. The installed base refers to the existing customers or users of a product or service.
- The author explains that a strong installed base can help cushion the impact of revenue fluctuations, providing a more stable financial foundation for the business. This is because the installed base represents a reliable source of recurring revenue, even during economic downturns or changes in the market.
- The article suggests that businesses should focus on building and maintaining a loyal installed base, as it can provide a valuable buffer against unexpected financial challenges and help the company weather economic storms more effectively.