How to Achieve Sustainable Growth
A typical misunderstanding of business growth is that it only happens through additional work, time, and effort, and for an already busy firm leader, this can seem like the last priority. But, sustainable growth can be very different. Sustainable growth involves planning strategically and ahead of time so that you have the right resources to achieve your business goals, without reacting too quickly that you occur an overhead. The following three elements should assist you in developing the resources required for the sustainable growth of your firm: 1. Increasing profit Firstly, it is necessary to differentiate between profit and revenue. Revenue is the total amount of income generated from your services, whilst profit is what remains after all expenses and debts are deducted. A profit margin between 10 – 20% is acceptable for a healthy architecture firm. We often find that when revenue increases, so do expenses, meaning that profit remains the same. This is often frustrating, as you are working hard with no substantial gain. Increasing profit ultimately comes from widening the gap between expenses and revenue. To lower expenses, firms can seek to eliminate unnecessary expenditures and improve operational efficiency. On the other hand, firms can seek to increase revenue by developing effective marketing and business development strategies that help bring in an increased number of better projects and clients.
