Clarity: A crucial component for growth

Chris Brown - Brown & Co

We all know it’s important to be clear about your business’ purpose and objectives, but just how clear are you about yours?

One of the crucial components of growth and success is clarity.

Having clarity can help you stay focused, motivated and resilient in the face of setbacks, making progress toward your goals.

But where do you start? A good place to start is with the numbers. First of all, consider these steps:

  1. Where are you now?
  2. Where could you get to?
  3. What is the gap?
  4. Create a plan
  5. Measure/monitor the results vs the plan

What areas should you be considering?

Rather than getting overwhelmed, we focus our clients on these seven simple key numbers:

  1. Revenue growth – this can show how fast the business is growing. It’s the fastest
    way to grow the bottom line, but must be done in a sustainable, scalable and
    profitable way.
  2. Gross profit – a measure of how profitable the main activities of the business are.
  3. Net profit – a measure of how profitable the operation of the business is as a whole. This should be a target and not an end result.
  4. Revenue per employee – this shows how effectively a business uses its intellectual property, systems and processes, staffing levels and how effective the team is.
  5. Cash days – measures how long it takes for every pound spent to make its way through the business into your bank.
  6. Core cash target – shows the ideal cash target to have on hand to be in control
    and easily pay debts as they fall due.
  7. Business return – shows the return the business generates for the time, money, effort and risk of the business owner.

Once you have the above numbers, you will be able to see exactly where our business is at. You can then see where you need to focus your efforts and build out an appropriate action plan with your accountant.

Studies have shown that those with clear written plans are 30 per cent more likely to grow. If you are held accountable to those plans, that rises to over 70 per cent.

That’s the power of clarit

Enjoyed this? Read more from Chris Brown, Brown & Co

Latest news

1

Forbes makes Manchester move Forbes Manchester

Forbes makes Manchester move

15 Apr 2024

2

Blackpool approves plans for pair of apartment complexes New South Promenade Apartments Visuals

Blackpool approves plans for pair of apartment complexes

12 Apr 2024

3

Distinguished engineer takes senior role at Lancaster University Rebecca Lingwood

Distinguished engineer takes senior role at Lancaster University

11 Apr 2024

4

International building supplies firm to open new plant in Preston New Kerakoll Group Premises Visuals

International building supplies firm to open new plant in Preston

11 Apr 2024

5

UVS launches new dedicated global service Screenshot 2024-04-15 at 11.23.34.png.png

UVS launches new dedicated global service

15 Apr 2024

Hwc 2024 Email Signature 980x120
Background image for hub sign up block

LBV Hub

Reach 50,000 members of the Lancashire business community

Post your news
Post your events
Post your offers
Company profile
Social reach
Magazine coverage
Sign-up
Events
Health and Wellbeing Conference 2024
Hwc 2024 Social Media 1200px 1
Networking
23 Apr 2024

Health and Wellbeing Conference 2024

Crow Wood Hotel, Burnley , BB12 0RT

08:30 - 13:00

Help to Grow Management Course
HTG2.png.png
LBV Hub Seminars
15 Apr 2024 - 17 Jul 2024

Help to Grow Management Course

Preston Campus , Preston , PR1 2HE

09:30 - 14:00

Business Networking in Blackburn - BNI Vista
EVENT LISTING SIZING Vista.png.png
LBV Hub Networking
16 Apr 2024

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:45 - 08:30

Business Networking in Chorley - BNI Endeavour
EVENT LISTING SIZING Endeavour.png.png
LBV Hub Networking
16 Apr 2024

Business Networking in Chorley - BNI Endeavour

Oak Royal, Bury Lane, Chorley, PR6 8SW

06:30 - 08:30

Business Networking in Lancaster - Eden Business Network
EVENT LISTING Eden Business Network.png.png
LBV Hub Networking
17 Apr 2024

Business Networking in Lancaster - Eden Business Network

The Borough, 3 Dalton Square, Lancaster, LA1 1PP

18:30 - 20:30

Business Networking in Accrington - BNI Zeus
EVENT LISTING SIZING Zeus.png.png
LBV Hub Networking
17 Apr 2024

Business Networking in Accrington - BNI Zeus

The Mill House, Corn Mill Yard, Accrington, BB5 5HX

06:45 - 08:30

Business Networking in Preston - BNI Diamond
EVENT LISTING BNI Diamond.png.png
LBV Hub Networking
17 Apr 2024

Business Networking in Preston - BNI Diamond

The Marriot Hotel, Garstang Road, Broughton, PR3 5JB

07:15 - 09:00

Cyber Secure 360: Safeguarding Your Digital World
CyberSecure 360 LBV-32.png.png
LBV Hub Seminars
18 Apr 2024 - 18 Apr 2024

Cyber Secure 360: Safeguarding Your Digital World

Accrington Stanley, Accrington, BB5 5BX

08:30 - 12:00

Business Networking in Burnley - BNI Kudos
EVENT LISTING BNI Kudos.png.png
LBV Hub Networking
18 Apr 2024

Business Networking in Burnley - BNI Kudos

Prairie Sports Village, Windemere Avenue, Burnley, BB10 2FU

06:45 - 08:30

Business Networking in Preston- BNI Brunch
EVENT LISTING SIZING Brunch .png.png
LBV Hub Networking
19 Apr 2024

Business Networking in Preston- BNI Brunch

Samlesbury Preston Hotel, Preston New Road, Preston, PR5 0UL

09:30 - 11:00

The Pro Club
Untitled design (6).png.png
LBV Hub Networking
19 Apr 2024

The Pro Club

Fraser House, Lancaster, LA1 4XQ

09:30 - 12:30

Business Networking in Blackburn - BNI Infinity
EVENT LISTING BNI Infinity.png.png
LBV Hub Networking
19 Apr 2024

Business Networking in Blackburn - BNI Infinity

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:30 - 08:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv115 Online Graphic
Subscribe now

Weekly news bulletin