What is turnover in business?

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StrategyDriven Managing Your Business Article |Turnover in business|What is turnover in business?What is turnover in business, and how does it affect the health of your company? Understanding how well your business is performing isn’t an exact science, but one of the indicators you may use to get a clear grasp is business turnover.

When running a business there are dozens of pieces of jargon to sort through, Indicators to analyze, and choices to make. They all assist you to realize how your firm is doing in precise terms. It’s probably one of the most significant and simple metrics to think about.

This article discusses turnover in simplified terms and walks you through the process of calculating it.

What is the meaning of business turnover?

It is a simple business metric that can be used to determine if a company is profitable or not. It’s frequently used as a quick and easy way to estimate a company’s size. HMRC, for example, considers turnover when deciding whether or not a company should register for VAT.

It refers to the total amount of money you made from selling your product or service in a certain period. It doesn’t take into account any expenditures or any other unexpected charges. It doesn’t even account for the profit you made during that period.

What is the significance of business turnover?

You can compare your existing turnover to other times of the year. This will help you indicate if your company’s revenue is increasing and if it is on track to meet your goals.

It’s also a useful figure for comparing to other metrics. If your gross profit is low in comparison to your turnover, it may be time to look into strategies to reduce your sales costs. If, on the other hand, your net profit is low in comparison to your turnover, you should consider increasing the financial efficiency of your company.

What’s the difference between profit and turnover?

Although both turnover and profit represent a company’s revenue, they are calculated using distinct parameters. Turnover, also known as net sales, is a company’s pure income from sales, whereas profit is the remaining total turnover after all variable and fixed expenses are deducted.

On their income statement, most businesses include both turnover and profit. Turnover is usually the first line item because it is the biggest figure and only accounts for revenue without any expenses. Profit is generally always the bottom line on the income statement, and it represents the entire income produced by the company after all operational expenses are deducted.

What is the method of calculating turnover?

Calculating turnover is as simple as combining all of your total sales for a particular time as long as your finance team keeps exact and accurate records. The gross profit (after subtracting the cost of products sold) and net profit (after deducting the cost of goods sold) can then be calculated using your turnover as a starting point (by then deducting all operating expenses).

Of course, turnover is not a metric of success. Every firm will make sales, but the size of the business, rather than the turnover, determines its success. However, when compared to other indicators, it can be used to determine success, and it is useful to know how well a company is growing

Tips for increasing your company’s turnover

You must make certain that your company’s turnover rises over time. Here are a few suggestions to assist you to increase the turnover of your company.

Aim for profitable growth.

Aim to sell as much as possible, whether you’re a product or service-based business. Increased sales will eventually result in increased profit, so be aggressive in your sales efforts. Use all accessible platforms to sell your goods as efficiently as possible.

Make special deals and promotions.

Offers and discounts are an excellent method to attract customers. You can always provide a supplementary service or decrease the price of the goods or service as an offer. This will assist you to attract more people to your goods or service, which will result in more sales.

Incentives are effective.

Your sales partners are your most valuable ally when it comes to growing sales. Make certain to motivate and incentivize them to perform better. Their improved performance will result in increased turnover for your company.

Final thoughts

So, this is about turnover and how it should be calculated. We hope you’ve understood the distinction between turnover and net profit. Turnover is an important aspect of every firm. It not only helps you assess your company’s success, but it also helps you plan for the future. Before the end of your first year of business, make sure you understand the various ways to increase your turnover and how to calculate them.

How To Maintain Productivity Without Compromising Your Cybersecurity

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StrategyDriven Managing Your Business Article |Cybersecurity|How To Maintain Productivity Without Compromising Your CybersecurityWhether you are a small local business running a simple website, an ecommerce project with a steadily increasing turnover, or a growing international brand – any business can find itself the target of cyber criminals. It is naturally the case, then, that businesses need to invest properly in their cybersecurity, and put it at the forefront of their strategic decisions.

However, there is a potentially conflicting interest with cybersecurity – and that is productivity. It is often believed by business owners that they can’t improve one without compromising the other. For example, putting in place multi-factor authentication on log-ins certainly makes a company more secure, but it is also likely to be less time efficient and create scenarios where genuine log-in attempts fail and have to be resolved.

For those companies that have chosen to invest in their cybersecurity, it is important to establish ways that productivity can be maintained, and even improved, without making this investment a wasted effort and financial decision.

Here, we take a look at how your business can achieve higher levels of productivity without compromising your cybersecurity.

Invest in the right security technologies

The first thing to note is that the type of cybersecurity technologies you invest in can play a big role in how it affects your business productivity. For example, some cybersecurity strategies place a focus on reacting to attacks – and while this is an important facet of security, it can also affect productivity tremendously.

It can be a much better idea to invest in technologies such as managed detection and response. This is software that operates in the background as data is ‘collected from across your networks, endpoints, and cloud environments, analyzed using the latest machine learning and behavioral detection engines, then enriched with the latest threat intelligence’.

From this data the software understands what is normal, and can therefore recognise and react to abnormal behavior. This can then be investigated. This is far more effective than waiting for an attack to happen and then having to uproot the businesses in order to find and deal with the problem.

Find compromises

There can be a real temptation to maintain productivity and even improve on it by taking a lax approach to cybersecurity policies. This concept here is that reducing the strenuousness of cybersecurity provides employees with more space to breathe. There can be logic here, but it is important to ensure that you are relaxing measures in the right areas.

It is important to consult with your business’ cybersecurity specialists as well as those who manage data and data security across the organization. Working with these members of staff can allow you to establish where your company is potentially vulnerable and find ways to ensure that any changes you make do not negatively affect you from this perspective.

Be aware of insider threats

Many businesses assume that insider threats necessarily come from malicious actors – for example, disgruntled former employees. However, this is not always the case. In fact the vast majority of cybercrime that involves an ‘insider’ element actually relates to mistakes that have been made by employees.

The key thing to note here is that if employees do not understand why they need to follow a particular cybersecurity policy, or if they feel that it stops them from doing their job effectively, they may simply disregard it. It is essential, then, that businesses ensure that cybersecurity policies are adhered to and training is provided to help employees understand why they have to take it seriously.

Employees often want to find the most time effective ways to carry out a task in order to strive for higher productivity levels. But this comes at too high a cost if the company as a whole is put at risk of a data breach.

There does not need to be an inherent contradiction between productivity and cybersecurity. In fact, as both are becoming vital to businesses, leaders of organizations need to find a way to ensure that both are prioritized. The most important step is to ensure that staff understand the importance of cybersecurity and the procedures that have to be put in place. This allows them to establish ways to be more productive in spite of cybersecurity measures.

How to Optimize Your Product for Your Customers

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StrategyDriven Managing Your Business Article |Optimize your product|How to Optimize Your Product for Your CustomersIt’s no secret that in order to be successful, businesses need to focus on their customers. After all, it’s the customer who decides whether a business is successful or not. In order to give your customers what they want and make them happy, you need to optimize your product for them. This article will discuss how to do just that!

#1 Know who your customers are and what they want

Knowing who your customers are is a vital step in optimizing the product for them. You need to understand where they come from, how old they are and what kind of needs they have in order to serve them better with your products and services.

Then you can take it one step further by creating personas based on these insights so that every time you design something new or develop an idea into reality, you’re doing it with specific people’s needs/wants in mind instead of just guessing about the general public’s preferences which might not be accurate enough!

#2 Create a customer journey map based on their wants and needs

The next step is to understand where your customers are in their life cycle regarding the product/service you offer; what does this mean? Well, once you’ve determined who exactly your target audience is, it will be easier for you to see how they use or would like to use your products/services relative to where they exist right now. For example, if someone just started using Facebook, he might want some basic tutorials before jumping into more advanced features.

This process enables you as a marketer not only to identify improvement opportunities but also to help your clients make informed decisions when designing new features! By creating a customer journey map based on the personas, you can get an understanding of all the different channels and touchpoints that a customer interacts with before, during and after their purchase.

Once you have this data, it will be much easier to see what works well and where customers might be getting lost or frustrated (the goal is to make the experience as effortless for them as possible), so you can optimize your product/service accordingly!

#3 Analyze how your product/service should be optimized to fit the customer’s needs

Analyzing all this data will give you an idea of what changes need to happen in order for your company’s products and services to meet their customers’ expectations. For instance, if there are certain features that aren’t being used as much but could benefit from having more functionality, then adding them now would make things easier on everyone involved with creating these changes and improve user satisfaction levels! It’s also vital to ensure that the equipment you use, whether it be a wet blast machine or any other manufacturing component, is of the highest quality to ensure a perfect end result.

The next step is implementing those improvements once everything has been decided upon by analyzing which channels work best or worst depending on where people tend to get lost during their journey through different touchpoints (e.g., social media vs website).

Optimizing your product for your customers is an important step in ensuring the success of any business. By taking these steps, you will be able to create a more efficient process that meets their needs while also reducing costs associated with poor user experience design!

How Your Business Can Create Positive First Impressions

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StrategyDriven Managing Your Business Article |Positive First Impressions|How Your Business Can Create Positive First ImpressionsIf your business is going to find the success you feel it deserves, you’ll need to create the right first impressions whenever you meet new people or try to win clients. But what does it mean to create positive first impressions and how can your business do it? That’s what we’re going to talk about today, so read on now if you want to learn more about the whole process.

Tidy Up

First of all, it’s a good idea if you tidy up your office interiors before anyone arrives. When people walk into your workplace and see mess, they see chaos and disorganization. Those are not ideas that you want to have associated with your business in any way at all. So be sure to keep the place tidy and organized as much as you possibly can.

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Improve Your Reception Area

The reception area that your business has in place will be one of the most important things of all when it comes to creating good first impressions. You’ll want to make sure that your reception looks the part and that there’s always someone on hand to meet and greet visitors who arrive. It should be a place that’s efficient and helpful, as well as friendly and welcoming.

Try to be Easy to Contact

Trying to be easy to contact and stay in touch with is definitely something you’ll want to do. When clients or business associates want to talk to you, that’s generally a good thing and something that most business owners want to happen. Those connections can open up all kinds of opportunities, so don’t make it hard for people to get in touch with you. Provide your details and respond in a timely fashion.

Present the Exterior of the Workplace Well

It’s a good idea to focus on the exterior of your office or workplace. That’s the part of your business that people are going to see before they actually step inside, so you’ll want those visual impressions to be positive. You can use a large water tank to store water for your lawn, trees and plants if you want to impress people with the greenery on display outside your office. Simply keeping it clean and tidy will help too.

Always be Punctual

Finally, you should try to remember the importance of always being punctual and on time. If you’re not punctual, you’ll create very bad first impressions because that’s the one thing that tends to annoy people, especially busy people who have better things to be doing than waiting around for you to show up. It’s a classic mistake and could really harm your business if you’re not careful about keeping track of time.

As you can see, there are plenty of things you can do if you want to make positive first impressions with your business. It’s always worth trying to convey a positive image of your business because you never know who might be paying attention at any given moment.

The Best Ways To Give Your Office A Facelift

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StrategyDriven Managing Your Business Article |Give your office a facelift|The Best Ways To Give Your Office A FaceliftGiving your office a facelift can sound like a difficult job. There’s a lot of square footage to work with, and you also want to try and maintain that professional quality that’s expected from the modern workplace. How are you supposed to redesign under these conditions?

Well, you’ve still got a lot of freedom to do what you want with your office here! And while you’ve already made a lot of alterations to your office in the past couple years, there’s still a lot more you can do to make your office the place you really want to be. Let’s go through some examples of the best ways to ensure this below.

Combine Your Styles

Do you like the white, minimalist aesthetic? Maybe a little bit, but certainly not in the abundance you see in modern workplaces! So break the mold here and pick a different style or two to complement this look within your office.

Get some mid-century furniture in, use Scandi wall decor techniques, and make sure there’s a pop of color or two to help break up the monotone background you’ve always hated walking into work to.

Avoid Light Overexposure

The more light in your office, the worse it’s going to look! Yes, you need to see what you’re doing, and there’s going to be some health and safety regulations you’ll have to follow as well, but that doesn’t mean you need overhead, fluorescent lighting. You can turn these fixtures off, save yourself a whole lot of money on the literal overhead, and use softer lights instead.

For example, opening up blinds and clearing the windows to let the sun in. But when it goes down for the day, using desk lamps or standing lamps or even RGB strips instead will make your office look a lot more inviting. This kind of lighting is a lot more comfortable on the perception, and certainly won’t hurt your eyes!

Make it Last

The more you can do now to maintain a shiny and sleek quality to your workplace, no matter how vintage or mid-century you’ve designed it to be, the less work you’ll have to do later. And this means you can work under the comfort that your office design is going to last for a long time, and you’ll always enjoy coming into work to see it.

So, what can you do to keep your office always looking clean and tidy? It’s in the little things. For example, if you’ve got wooden frames hanging on the wall, get them waxed and sealed, and make sure any signs you hang are covered with 651 vinyl. Similarly, you can layer hardwood, lino, and carpet with further carpets and easily switch these in and out when they wear away. Look around your workspace and see where other small touches can be made.

Giving your office a facelift just takes a bit of inspiration! Make a difference in your workspace using tips like the ones above for ideas.