Sustainable Business Growth and Profitability
Taggart: “G’day it’s time for another Taggart tip. It’s 30 degrees outside so we’re doing the tip from inside the office today and what I like to talk about is growing profits and growing your business – sustainable growth and profitability.
Now, most small businesses think that in order to get increased profits on the bottom line they’ve got to cut costs but it’s not really the truth.
Cutting costs is certainly the biggest bang for the buck and it gets an immediate effect on the bottom line it’s like a sugar hit for the business.
But the real way to grow our growth and profitability; and there are only four of them is exactly what I’m about to show you now.
The real rocket science behind this is:
- Increasing the number of customers
- Increasing the frequency of sales
- Increasingly average sale value
- Driving costs down
As you can see the rocket science is here is that three out of the four are revenue based drivers and only one it is in relation to costs.
So, my tip for the day is if you’re looking for sustainable growth and profitability concentrate on the three revenue drivers and costs as well, in order to achieve that sales growth and profitability.”
Interested in learning more? Get in touch with a small business advisor from Taggart & Partners on (07) 3391 1188 and learn how you can achieve sustainable growth and profitability in your business today.
Thank you tuning in to watch another of our Taggart Tips, a series of short video tips that can help you run, manage and grow your business. We hope you have found the information useful and we will have a new Taggart Tip out for you shortly. For any urgent concerns we encourage you to get in touch with the team at Taggart & Partners today.
*** Our series of Taggart Tips are intended for guidance purposes only, and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.
Updated 8 July 2020