Focus on Fundamentals

Recent history showed that during a three-year period, the U.S. economy showed good trends, but the fundamentals were weak. This led to some of the downturns in the stock market and housing meltdowns.

Entrepreneurs can learn from these lessons. What if your business shows good trends, but the fundamentals are poor? You  feel great in the short term, but the future might be bleak.

As an example, your sales may be on the upward trend, but if the fundamentals for your business – quality of product/service, delivery times, customer service, and so on are weak, how long will your sales continue to grow? What if your sales are growing, but your margins are rapidly declining? Is that really a good trend?

Entrepreneurs should not be fooled by short-term trends in their businesses, but focus on ensuring that the fundamentals are sound and going in the right direction. Determine the key drivers of your business and concentrate on fixing and enhancing these fundamentals to grow your company for the long term.

Ravi Patel

http://www.patelCFOservices.com

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