Reasons for Revenue Slippage

I‘m always on the lookout for articles with the potential to positively change a business. What’s your take on the following points I came across recently?

Revenues decrease for any number of reasons. Manufacturing or delivery problems result in reduced product availability. Consumer tastes change and demand for your goods declines. Economic conditions force consumers to spend less on discretionary purchases. Staff changes adversely affect your ability to sell as much of the product. All of these factors can play a role in revenue slippage.

Supply

If you're selling a manufactured item, any disruption in the process affects revenue. Whether it's a shortage of raw material or broken equipment, the company's bottom line suffers. The same situation is true for delivery problems. Workers go on strike, delivery trucks break down and adverse weather causes impassable roadways and closed airports. Consumers can't walk into your store and buy something if the shelves are empty.

Demand

The product you sell may have gone out of fashion. It may be technologically obsolete. Maybe you sell consulting services, and business boomed when you were on the cutting edge of the field. Revenue drops when qualified competitors enter the marketplace and clients go elsewhere. Diversification and constant reassessment help to keep a business fresh and viable.

I’d be really interested to know your opinion. Check out the full article here and then I’d be happy to discuss with you by phone (0429) 011-071 or email [email protected].

To your success,

Ian