Plain and Simple: Bright Business Insights Winter 2018 | Page 11

LOOKING FOR THE NEXT LEVEL OF BUSINESS SUCCESS? Don’t Ignore A Bottom Line Growth Strategy Part of running a successful business is to always be on the lookout for • Leadership: As a business owner, you have to become the leader ways to improve your business and sustain the success you’ve enjoyed the company needs for each level of success. As your business throughout the years. However, with so many concerns and challenges grows and becomes stronger, so must you grow and adapt. vying for your attention, it’s easy to become overwhelmed. And, before you know it, efforts to strengthen your bottom line are put on hold • Operational Efficiency: Decide on key areas to evaluate and use quantitative data to assess performance levels to determine while you trudge through the trenches, putting out fires and fielding effectiveness and efficiency. After you’ve compiled your data and employee concerns. studied the results, you can identify ways to enhance key areas of Step Away From The Trenches your business. As a result, you are sure to save time, money and Taking your company to the next level starts with allowing yourself satisfaction. to focus on what you consider to be the important drivers of your company’s overall growth strategy and ultimate success. organizational resources while improving customer and employee • Product Mix: Focus your efforts on selling the items and/or services that bring your business the highest profits. Trying to do There are two types of growth to note: top line and bottom line. Both and offer everything under the sun only puts you at a disadvantage. are valuable when determining your business’s financial standing, but Instead, focus on what sells – and sells well. Focusing on more they are not interchangeable. Top line growth only shows how effective profitable product offerings and deciding when to discontinue a a company is at generating sales and does not factor in its operating product or leave a segment of the market will ultimately bring efficiencies. Bottom line growth, on the other hand, outlines how healthy growth and success for many years to come. efficient a company is with its spending and operating costs and how effectively it controls costs. Of course top line growth deserves your attention; but the bottom line The definition of business success goes beyond typical sales growth. can use the principles outlined above to improve efficiency, enhance It requires the blending of finance, operations and sales. Therefore, in your products and achieve greater profitability. some cases, growth is not synonymous with success. In fact, focusing on business success is ultimately what is going to take your company to the next level. Focus On Bottom Line Growth Establishing and maintaining healthy bottom line growth is the gold standard in business, but getting to that point isn’t always easy. As with most worthwhile goals, achieving a higher level of success means you must embrace change and adopt new behaviors. If you start putting your effort and resources toward this particular strategy, results are sure to come. by: Kyle Stemple, CPA, CGMA East Central Ohio Regional President, Director of Manufacturing & Distribution Services, & Lean Six Sigma Green Belt 122 Fourth St. NW, PO Box 1020 New Philadelphia, OH 44663 [phone] [email protected] strategy is ultimately how you will maintain long-term success. You Give me a call to learn more about bottom line growth and how it can help your business.