A struggling business requires immediate action. Here are your options.
Thank you for the brain food Scott!
You’re welcome!
What are some ways you track and measure growth in a business model that is brand new to you as an owner?
Step 1: Race to break even.
Step 2: Race to an above average net profit for your industry/sector.
Step 3: Invest in growth, which will eat into net profit, bringing it down to an unsustainable level, but it’s necessary.
Step 4: Return to profit margin in Step 2, but at a higher revenue figure.
Repeat steps 3 and 4 until you achieve maximum reasonable market share.
“But Scott, this makes it sound like business is all about the profit?!?!”
Yes.
So many questions.
Thank you for the brain food Scott!
You’re welcome!
What are some ways you track and measure growth in a business model that is brand new to you as an owner?
Step 1: Race to break even.
Step 2: Race to an above average net profit for your industry/sector.
Step 3: Invest in growth, which will eat into net profit, bringing it down to an unsustainable level, but it’s necessary.
Step 4: Return to profit margin in Step 2, but at a higher revenue figure.
Repeat steps 3 and 4 until you achieve maximum reasonable market share.
“But Scott, this makes it sound like business is all about the profit?!?!”
Yes.
So many questions.