Profitability vs growth

Profitability vs growth

If you are an entrepreneur or an executive, the most question you are going to be asking is; “do you focus on growth or profits?” Most of the time, executives are spending a lot of time trying to focus at the bottom line. Do you put more resources to increase the bottom line or grow the business? Of course, it depends on the type of the organization you are in and your growth imperatives.

One of the best schools of thought says first put money on the table. You can always get advisers to guide you on how to spend it. The difference between growth is cost of sales. Which kind of inefficiencies do you have in terms of fixing the cost of sales? Always, focus on the top line. Keep in mind of anything new you can do with your suppliers to reduce the cost of sales.

 

“Do you focus on growth or profits?”

 

As you grow, make sure that you maintain the little you have. It doesn’t matter how much you grow, if you don’t protect the little you have it will soon disappear. Don’t lose the sight on both sides – top line and bottom line. Grow as much revenue as possible, have an eye of asking am I spending on the right things? Most of the time, we work ourselves too much but not focus where our energies are going. You will not achieve success.

About M. B. Mugisa

Mustapha Barnabas Mugisa is one of those rare people who provides business consulting and advisory to professionals and corporate entities who demand the very best. He is a prolific speaker and governance (strategy and risk) expert. His speaking involves making key notes at major conferences and business events on both technical subjects and leadership skills. A change agent and motivational speaker. Mustapha provides tools and proven methodologies to remarkable results through making people appreciate change. Visit Mustapha's LinkedIn profile to know more. Mustapha is the architect of #WinningMindset Leadership and #WinningTheGame strategy approach that combines Harvard Business strategy Playing To Win, with the Blue Ocean Strategy and Balanced Score Card to deliver a strategy that is easy to execute and monitor. Visit www.mustaphamugisa.com for special insights to improve your condition. Are you too good to be great?

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