Bottom line growth

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Innovation drives top-line growth leading to increased revenue and increased gross sales. Two simple goals continue to perplex companies: 1. In fact, profit could be flat or even slight decrease.

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Many marketers believe in improving the business bottomline by focusing on the topline growth. By topline growth I mean, increasing the website traffic, increasing sales, brand mentions etc. But this is sub-optimal way of improving the business bottomline.

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The bottom line refers to a company's earningsprofitnet incomeor earnings per share EPS. The reference to bottom line describes the relative location of the net income figure on a company's income statement. Bottom line is commonly used in reference to any actions that may increase or decrease net earnings or a company's overall profit.

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The top line and bottom line are two of the most important lines on the income statement for a company. More specifically, the bottom line is a company's income after all expenses have been deducted from revenues. These expenses include interest charges paid on loans, general and administrative costs, and income taxes.

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Business objectives of company owners vary as much as the individuals themselves. As companies mature, and owners age, those objectives often evolve. Some owners carefully plan and prepare themselves and their companies in advance — others react to circumstances.

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When people talk about growth as it relates to companies, they could be talking about two distinctly different things. But the distinction is important, because strategies for top line and bottom line growth are often different. And when it is your job to grow the company, it is important to know what type of growth you are after.

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Increased sales, increased profits and decreased costs all contribute to the bottom line. Growth strategies for the small business are the same in any kind of economy, recessionary or otherwise. You want to make more dollars march through the front door of your business into your cash registers, or onto your balance sheet, and you want to do it at lower cost. A three-pronged approach in conjunction with careful measuring will help your company grow in any climate.

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Never miss a great news story! Get instant notifications from Economic Times Allow Not now. H2 is expected to be much better because of demand improving: Kaustubh Pawaskar, Sharekhan.

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Employees who work in constructive workplace cultures understand what is expected of them, feel empowered to do their jobs well, tend to effectively meet their objectives, and feel recognized for their contributions. The best companies to work for have constructive cultures. It should not come as a surprise, then, that studies show that organizations with strong constructive cultures also have strong growth compared to peer organizations with less constructive cultures. He found that the Best Companies outperformed their peers other similar firms in the same industry or with the same characteristics but not ranked as Best Companies by 2 to 3 percentage points per year.

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