Day: March 12, 2018

4 tips to juggle growth and profitability with ease

At what level do you rank the growth and profitability of your business? Many business leaders want growth at any cost. For, high-growth companies are often better valued than slower-growing companies in the same sector. However, if the turnover increases at the expense of gross margins, your company is at risk.

On the other hand, focusing solely on profitability by limiting spending can lead to stagnation. Whether you are focused on growth or profitability, you need to know when and how to include them in your business culture and activities. Here are four steps to better balance the two.

Decide what the purpose of your business is

Is it to maximize revenue or achieve a certain level of profitability? Or is it a bit of both? Every entrepreneur will have a different answer to these questions. For private businesses that support their owners, maximizing cash flow may be the ultimate goal. If you are focused on growth and you suffer losses, you should have a clear plan and an up-to-date schedule to deal with the dark times ahead. SOEs will focus on maximizing the share price of the company, which often means trying to positively position the company in growth or profit against others in the same sector.

Use the “rule of 45.”

For a company that wants to achieve an exceptional valuation in the market, its annual growth rate plus its operating margin must necessarily exceed 45 percent. While this is just a rule of thumb, it is surprisingly valuable in thinking about the balance between growth and profitability.

At the other end of the spectrum, if a company does not grow or develop slowly, it needs an operating margin above 45 percent to reach a high valuation level. High operating margins are very difficult to obtain and even more difficult to maintain over time. This is just a point of support for the idea that businesses cannot stagnate for a long time and remain useful or relevant.

Use the Rule of 45 as a simple way to compare your business with the best in the world. If you are trying to achieve a certain rate of growth, consider how this work could affect your operating margin. If you are fighting for a certain level of profitability, consider how this might affect your ability to grow.

Communicate goals to everyone.

Regardless of the overall goal, it is your job to clarify the financial goals of the company and communicate them to all team members via quarterly plans, annual plans, and a three-point plan. at five years old. The purpose of these plans is to help the team understand the inevitable short- and long-term trade-offs between growth and profitability, and how these compromises will bring society closer to your vision. Knowing the goals will help employees make the right decisions.

Provide the appropriate resources

If you want to grow, you cannot limit expenses. You need to invest in new ideas, new products, and new resources to maximize productivity. But you have to balance these investments with the long-term plan so as not to hurt the potential profits. If you want profitability, you will still need to provide resources to maximize productivity and maintain sufficient growth to ensure that the company is moving forward and remains relevant in adapting to changing market conditions.

Successful businesses will have a high level of profitability while experiencing very rapid growth. Of course, achieving this combination is almost impossible because strong growth is a drag on profitability. Finding the right balance means guiding and driving your business with a master hand. It’s your turn!

In the ever-changing world of Bitcoins or other cryptocurrencies, there are several services that have somehow earned little bad reviews or reputation. Well, there is a reason for the same. It is said that there were a number of scams involved that have resulted in a number of people losing their money by investing in these types of services. Also, there are some companies of course that have earned positive feedbacks in the gaming area of crypto cloud mining.  But the number of such companies is quite low when compared to others who ran away with a lot of money from their investors.

Let us now, understand the difference between Bitcoin mining and real mining, as this will help you to differentiate between the scam and genuine service provides while dealing with cryptocurrencies.

Understanding the term – Cloud mining

This service tends to offer you to mine Bitcoins and several other cryptocurrencies. Here, you are actually renting their mining hardware mechanism in order to get some coins mined. Generally, you have to pay in the form of the harsh rate provided to you and for a certain period of time (it is the resting time).  Also, depending upon the service terms you may have to pay a sum of additional fees for services like maintenance, electricity expense and more.  This often gets deducted on daily basis from the mined coins or you can go for paying all of that upfront.

What do you mean by Real Mining for Bitcoins?

If you are one of those who has an obsession for mining Bitcoins and other cryptocurrencies, then having a bit of the knowledge about the software and hardware is one of the most important things that you need to go for before starting the process. If you are mining at your own premises using a real miner than you can always control your mechanism easily. The setup also requires regular monitoring to ensure that the process if operational completely and does not end up giving you some serious problems.

Here, you can choose if you want to mine the crypto coins or you just want to hold your coins for a particular period of time and sell it later to cover the costs involved in the process.

We advise you to be a little more careful before you start mining. Try not to risk your money based on a single decision, always try to be on a safer side so as to avoid any loss later.