18 Apr Business Alchemy 101 Lesson 13–Sales Growth Ratio (Application)
The Sales Growth Ratio is important to track so that you can better understand your sales and see if there is a weakness in your sales. This number can be compared to the same ratio from previous years or across companies within the same industry in order to make conclusions about the health of your sales.
If you are trying to grow your company, you will want a higher Sales Growth Ratio. Use this ratio to incentivise your sales team and to make decisions about your marketing and sales strategies.
There are cases in which you may not want a strong Sales Growth Ratio. If you are struggling with processes, fulfilling customer orders and customer satisfaction, you may prefer to adjust your sales to only the most profitable clients and instead spend some time and money on improving the internal structure of your company before pushing forward.
These ideas are another reason why it is important to have information at hand to make your decisions instead of just making guesses about what your company needs. Remember…
…Your business Thrives on a solid Foundation!!!