Two important measurements of the health of your business are the predictability and consistency of your profit / revenue growth rates. If someone were to ask you “what was the growth rate in your profit and revenue in each of the last 3 years?” or “what was your revenue growth rate last quarter?” and “what was the profit growth rate in the comparable quarter last year?”, could you answer those questions quickly and without stumbling? Many business owners are not tracking these crucial statistics. When they give me their answer and I evaluate the numbers, they are usually far off in their profit and revenue margins. When I ask them, “how predictable and consistent is your profit growth rate?”, I hear all kinds of stories as to why there are too many variables to determine this answer. Great companies are able to reliably predict their revenue growth rate and are rewarded handsomely when they are ready to sell.
Failure to have predictable and consistent profit is a key indicator that means different things to different stakeholders.
Failure to have predictable and consistent profits many times indicates that leadership does not have a strong plan to lead, manage, and grow their business. It may mean that you are leading the business with the “Hope and Pray” method, creating a plan on paper but not staying on course, or that your team really does not understand what it is going to take to achieve consistent growth and profit to begin with. You may know what your challenges are, but you have not committed to solving them.
Do you wonder what the keys are to achieving and maintaining consistent growth in revenue and profits? Here is a list of steps to take for consideration:
Struggling with profit and revenue growth? A business coach can help improve predictability, increase profit margins, and help your company grow faster than your competitors. Call Howard Shore, one of the top business coaches in the United States, for a FREE consultation at [phone link=”true”] to see how an executive business coach can help you run a more effective business or become a more effective leader.