Is your business losing this vital attribute?
Even in these uncertain or anxious times, there are many businesses that are thriving, writes Malcolm Gallagher, and they all seem to have the same thing. It’s something we all associate with good health, positiveness and well being. It’s vitality.
Those business that are competing and winning seem to be brimful with it. They focus on what they are going to do rather than what they did. They are continuously stretching themselves and growing their capabilities.
Importantly they know that success comes from continuous development of the size of their larger relationships which, in turn, keeps them in the virtuous circle of improve, compete and win.
So, if vitality is vital, how can you avoid losing it in your business?
There are two key measurements you can consider applying.
1. The average revenue (or gross or net profit) per customer. If you are maintaining your vitality you are not just increasing the number of customers but also enlarging the profitability of each one
2. Average revenue (or again gross or nett profit) of your largest 6 or 12 customers. This measurement which is often termed as “the largest cheque” is where the true vitality is seen. To achieve continuous growth the vitality shows itself not only in increased orders but also in the whole company approach to the customer, along with awareness of the market and the cust9omer’s own challenges.
Whether you use these two measures, or find others, know that your continuing growth is likely to depend on increasing the vitality of your business.
This was posted in Bdaily's Members' News section by Phil Langton .
Enjoy the read? Get Bdaily delivered.
Sign up to receive our popular North East morning email for free.