Sales zimepanda 20%.
Lakini biashara yako imekuwa strongerβ¦ ama imekuwa tu busier? π
Imagine two businesses.
Both grew sales by 20%.
Business A: β Gross margin iko stable β Costs zinakua slower than sales β Customers wanalipa faster β Processes zimekuwa more efficient
Result?
Sales zimepanda na profit pia.
Business B: β Supplier costs zimepanda β Discounts zimekuwa mingi β Expenses zimepanda faster than sales β Customers wananunua but hawalipi on time
Result?
More sales.
More work.
Almost the same profit.
Hapo ndio difference iko.
Sales growth pekee haimaanishi business iko healthy.
Ask yourself:
π Margin yako iko stable?
π Growth inakugharimu kiasi gani?
π Ni customers/products gani zinakuletea profitable growth?
Because you can grow by 20%...
...and still be getting weaker financially.
Don't just celebrate the sales number.
Follow what the growth is doing to the business. π
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