Management Tips Long Island City NY

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

National Consulting Llc
(718) 247-1000
4141 38TH St
Long Island City, NY

Data Provided by:
Fifty Seventh Street Mgmt
(718) 392-0623
1149 44TH Dr
Long Island City, NY

Data Provided by:
Kgk Security Consultants
(718) 361-6220
4120 46TH St
Sunnyside, NY

Data Provided by:
Traynor Consulting Inc
(718) 545-0026
1111 30TH Dr
Astoria, NY

Data Provided by:
CEO Space New York
(877) 464-2469
58-51 43rd Avenue
Woodside, NY
 
Premium Hosting Inc
(718) 472-0326
4801 38TH St
Long Island City, NY

Data Provided by:
Econo Tel
(718) 706-9033
1315 37TH Ave Ste 2
Long Island City, NY

Data Provided by:
H Orens Management Consultant
(212) 371-2022
400 E 57TH St Ste 10C
New York, NY

Data Provided by:
Pitagorsky Consulting
(212) 696-9687
144 East 37th Street
New York, NY
 
Neva, Inc.
(917) 477-2361
909 3rd Ave.
New York, NY
 
Data Provided by:

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






Article Source:

thePhantomWriters Article Submission Service