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Nice Turnover, shame about the profit

What is the difference between Turnover and Profit?

The turnover of a business is the amount of revenue it has earned in a particular accounting period.

The profit of a business is the amount remaining after deducting from the turnover the expenses incurred in earning it.

A difference between turnover and profit is that a rising turnover may be a sign that the business is growing but profit is the indicator of the “health” of the business. You are in business to make a profit, otherwise the business will eventually fail. Increased turnover does not guarantee rising profits, particularly if the business is unable to control costs.

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Turnaround Management – How To Survive A Downturn In Business

Business is a daily minefield of customers, employees and suppliers all with different and often competing demands for limited resources. Add to this the need to keep up with technology, competitors and new developments within the industry and it is no wonder that maintaining a balance in business can be very difficult.

With so many elements to juggle, often a business can be heading in a downward direction long before it becomes obvious to owners or management. If you find that business is indeed heading the wrong way, here are some tips to help manage and survive the downturn while turning business around.

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