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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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The 3 Most Common Mistakes Made When Hiring A Business Coach

Making the decision to hire a business coach is not only a major one for any business, it also represents a significant investment.  While making the initial decision to hire a coach may have been easy, what is not so simple is ensuring the right steps are taking during the hiring process.

There are some common mistakes that business owners and managers make when hiring a coach that can significantly reduce the benefits of coaching.  Specifically, these are:

1. Lack of clearly defined business outcomes
2. No selection criteria (or criteria that are poorly defined)
3. Rushing the hiring process.

An outline of each of these mistakes along with how to avoid them is outlined below.

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The 5 Step Process for Turnaround Management

Turnaround Management is about business restructure and renewal.  Often, a turnaround management strategy is employed when the business is under financial stress.  However, it is not necessary to wait until the situation becomes too dire to commence a turnaround strategy.  In fact it is preferable to commence the process before it could be too late.

To help understand how turnaround management works, below is an outline of the 5 step process involved.  Having a good understanding of this process will make it easier to identify if and when, it should be applied.

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