20 Jun Business Alchemy 101 Lesson 19–Revenue to Space (Application)
There are many different ways that the Revenue to Space Ratio can be beneficial. I will mention two of them here–a retail store and in making decisions about new spaces.
Anytime that you are selling in your store or office this ratio is useful. You may be a retail or wholesale store or even a salon or a professional office practicing law, medicine, accounting or the like. In any of these situations, it is important to know your Revenue to Space Ratio.
The second scenario that benefits from this ratio is when you are considering a move to a new office. Will the new space produce new revenue? If so, will it also increase the Revenue to Space Ratio? Is the increase in cost worth the move? This ratio can be used to determine the answers to those questions.
Additionally you may be deciding to downsize. If you downsize, will your Revenue to Space Ratio increase? You should be able to answer ‘Yes’ to these questions or the move may not be worthwhile.
Regardless of the situation, the underlying theme is always an assessment of how the size of your space affects your sales and if a different space would be more suitable.
Your business THRIVES on a solid (and appropriately sized) FOUNDATION!!!