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Business Performance

Analysis of productivity, profitability, KPIs and the factors that influence overall business performance.

Profit Is Not Cash: Why a Profitable Business Can Still Run Out of Money

A business can be profitable on paper and still struggle to pay wages, suppliers or rent. Profit measures whether revenue exceeds costs over a period, while cash flow measures when money actually enters and leaves the bank account. The British Business Bank warns that even profitable businesses can experience serious cash-flow problems when they incur

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How Inflation Can Hurt a Business Even When Revenue Is Growing

Revenue growth usually looks positive. If a company sells more this year than last year, management may assume the business is becoming stronger. During periods of inflation, however, higher revenue does not necessarily mean higher profitability. A company can collect more money from customers while simultaneously paying more for materials, wages, energy, transport and other

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Bad Management Costs More Than Businesses Realise

When the Workplace Becomes the Problem: How Poor Management Damages Performance Businesses often look for performance problems in the wrong place. When productivity falls, deadlines are missed or employees begin leaving, management may assume the company needs more training, better technology or stricter targets. Sometimes, however, the real problem is the working environment itself. Poor

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Revenue Is Growing — So Why Is the Business Still Struggling?

Revenue growth is usually treated as good news. More customers, more sales and a larger top-line figure can make a business look as though it is moving in the right direction. But revenue on its own does not tell us whether the company is becoming healthier, more profitable or more resilient. A business can grow

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