Management Tips Binghamton NY

This article provides business management tips based on the bottom line definition of growth.

North Coast Advisors Inc
(585) 218-7370
625 Panorama Trl
Rochester, NY

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The Creative Problem Solving Group, Inc.
(716) 667-1324
6 Grand View Trail
Orchard Park, NY
 
P D's Management
(718) 778-6770
409 Lefferts Ave
Brooklyn, NY

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Lmt Consulting Inc
(718) 336-6667
2222 Coney Island Ave
Brooklyn, NY

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The Soliance Group
(716) 478-7544
6989 Rebecca Dr.
Niagara Falls, NY
 
Business Option
(347) 413-7217
1125 Nostrand Ave Ste A
Brooklyn, NY

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Aramark
(585) 305-5657
20 Sunset Hill
Rochester, NY
 
Provider Consulting Group Inc
(212) 594-5008
363 W 30TH St Ste 5F
New York, NY

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Neva, Inc.
(917) 477-2361
909 3rd Ave.
New York, NY
 
Hasenfeld & Klein
(646) 436-3320
1525 55 street
Brooklyn, NY
 
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Management Tips

At a high level there are only two ways to grow a business: increase sales and decrease costs. Here's a simple management tip that will save you a lot of wasted effort. Before you start looking at the details of each method, you should understand the layout of a simple profit and loss statement and some basic terms your senior management team is very familiar with. These are the measurements that matter to business leaders.

The Bottom Line Definition of Growth

Businesses are ultimately measured by owners and investors by how much profit they generate. Simply put this is how much money is left after all the costs are paid. Let’s take a look at a simplified business profit and loss (or income and expense) statement.

Sales Revenue $1,000,000
- Variable Costs (material, labor, etc) - $500,000
= Gross Profit $500,000

- Fixed Costs (overhead, building, etc) - $300,000
= Profit $200,000

- Taxes - $50,000
= Profit after Tax $150,000

In this example the top line of the P&L (profit and loss) Statement is $1,000,000 and labeled Sales Revenue. The top line is always Sales Revenue, and as a result growing the sales side of a business has come to be commonly referred to as top line growth.

The bottom line of our P&L Statement is $150,000 and indicates how much money is left after all the expenses have been paid. This is the money that the owners or shareholders have left to either put in their pocket or reinvest in the business. The money left over after all expenses are paid is commonly referred to as the bottom line.

Summary

By looking at this example we can see that there are fundamentally only two ways to grow a business. One is to increase the top line through increased sales. The other is to increase the bottom line by decreasing costs. Top line and bottom line are terms and concepts you must be familiar with if you want to drive growth. Initiatives that impact either the top line or the bottom line are the only initiatives that matter to business leaders. Once you understand this, you can start to focus your efforts around initiatives that matter.

About the Author:

Daryl Cowie has shared management tips with 1000s of people in over 30 countries around the world. His mission is to help you and your company turn business opportunities into business realities. Sign up for his free business management home study course at http://FreeManagementTips.com






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