In today’s competitive business landscape, maximising a team’s productivity is paramount for the success of any MSME. For micro, small, and medium-sized enterprises (MSMEs), optimising the team’s performance becomes even more critical due to the minimal resources required and the need to compete with more giant corporations.
Beyond the Bottom Line: Strategies for Sustainable Revenue Growth Introduction Revenue growth is the lifeblood of any business. The engine drives expansion, profitability, and, ultimately, success. For C-suite executives and venture capitalists, understanding the drivers of revenue growth and developing effective strategies to achieve it is paramount. This in-depth blog post will explore the multifaceted …
Accounts receivable turnover (ART) is a crucial metric that measures how efficiently a company collects its outstanding customer invoices. It indicates the number of times a company collects its average accounts receivable balance during a specific period. A high ART ratio generally signifies that the organisation effectively manages its credit policies and payment collection promptly, while a low ratio may indicate potential cash flow issues and credit risks.
Customers’ Lifetime Value (CLTV) measures the total revenue a client will generate for a business over their lifetime. It is crucial for companies of all sizes but essential for MSMEs (Micro, Small, and Medium Enterprises). MSMEs often have limited resources, so they need to focus on acquiring and retaining profitable customers.
Client Acquisition Costs (CAC) are crucial for any business, but they are especially important for MSMEs. CAC measures the total cost of acquiring new clients, including all marketing, sales, and customer onboarding expenses.
There are two main ways to calculate CAC. The first method is dividing the total cost of acquiring new clients by the number of new clients. The second method is to divide the total cost of marketing and sales by the number of new customers acquired.