Why Turnover Is More Important
Turnover is more important than anything in business. Why? Because turnover is growth and growth is long term profit. Example. Make 50,000 profit, great, well done. Why not invest that money back into the business and next year make 500,000 ? Turn that back in and maybe in 10 years you'll make 5,000,000.
The numbers are the proof. As your turnover grows your relative cost base shrinks. As your turnover grows you need less margin. You can therefore outlast and undercut your competitors.
Spend every bit of profit in the business. Do not make a profit and pay taxes. You'll never see that money again. You should have and could have invested it back into the business to grow.
As soon as you cant grow anymore. Max the profit and sell the business.
22 мар 2024
