In order to grow and succeed at your business in Vancouver, Canada, you need two things:
- Consistent, cash flow in order to sustain your operation.
- Consistent revenue growth over time and competitive earnings.
What do I mean by the second point? That means that you can’t look at any single year and describe how your company is doing. You may have a great year or a terrible year, but what about the rest?
You need to be looking at a chart of as many years as possible. Does it show a steady increase in revenue? If so, that is good. Does it show random and erratic peaks and valleys? Even if you have a good excuse, erm, explanation for them, on paper it shows your company has an unstable history.
But also be looking at how well you are doing against others in your industry. Sometimes you can’t just look at your revenue and compare it to other industries, it’s too apples and oranges. If you are generating a small rate of growth, but compared to the rest of your competitors you are doing gangbusters, then that’s still quite good.
Lastly, also consider how much debt you carry. If you hold large amounts of debt (i.e. leverage), that will eat away at your resources as you need to pay it off at some point (thus it’s stress for the company).
And about the first point (consistent cash flow – working backwards here, I know), the great equalizer in whether your company is doing well or struggling is your sales profit margin. If your cash flow has large margins, this allows your company to do more and grow bigger and better.
Is your company winning or losing? Comments?
Regards,
Ronald Lee
Elevated Marketing
info@elevatedmarketing.ca
…follow me on Twitter
