Growth Concepts LLC

Posts Tagged ‘consulting’

Did you know a typical sales/seo/sem strategy that brings in gross sales does not necessarily increase earnings. Yes, there could be sales but are they profitable? And do they increase EBITADA?

For example lets say a Business Owner invested $10,000 to increase sales on a website. It worked. $25,000 was added to revenue but profits were 3%. Now what if the Owner invested $10,000 in an earnings move resulting in $25,000 while increasing price 3%, margin 3% and decreasing advertising 3%? This new earnings move with combined with the other sales strategy would result with a 18% gain of EBITADA. So the same risk and investment but with different moves brings $13,500 to EBITADA and $40,500 in business value. Which move would you take? Warning! The wrong earnings move could do the opposite. Which move are you making? Too complicated to do without a spreadsheet-ask us for a spreadsheet with the numbers.

Learn the difference between a typical sales strategy vs. earnings move in the introduction of “14 Unalterable Laws of Business Value”.

Don’t get confused about strategies not focused on earnings/value. Below is a short list of typical strategies:

MARKET SEGMENTATION

COMPETITIVE POSITIONING

DATABASE STREAMLINING

REDUCING NETWORK DOWNTIME

MORE EFFICIENT PROCESSES

BRANDING

FACILITATION

TIME MANAGEMENT

SALES TRAINING

SOCIAL MEDIA INITIATIVES

DON’T TAKE US WRONG there might be a strong strategy currently working for you! We ask are your initiatives focusing on areas that could bring you a EBITADA return? Ask about an earnings move for your particular situation.