More Sales Don't Always Mean More Profits
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...what it has to do next year and has a clear growth area to target.
Look at your own business for answers
I tell every company I work with, and would say to any business reading this, in order to understand your business properly, you need to understand what type of sales leads you need, what sort of conversion rate you get from those leads, the average profit per sale and how long it actually...
...takes to get that money in. If you understand and know all of those things, it will give you a complete sales strategy. It’s amazing how few companies know detailed answers to all of those things.
The other thing I would say is that I left school with an E in maths, so it’s not something that requires an economics degree to get right. All of these figures are there in your business, you just have to record them and then monitor them. By doing that you will get answers — not always the ones you might be expecting. You will see where you are really making your money and which areas of your business are not really profitable.
Business Consultant Ruth Badger writes a regular column for Business Sense.
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