Tesco’s great financial results once again demonstrate what powerful brands can achieve.
For smaller businesses it is crucial to apply yourself to margins both gross and net. I treat ‘margin management’ as an intellectual asset.
Margin Management
Have a full cost/profit analysis by line or product group allocating interest, management time and all other costs in fair proportion.
Watch out for inflation, now exceeding 3%pa in UK, fight to control costs and increase your prices.
Be bold and drop poor lines of business that consume cash, time and other resources and bring too little reward.
Leave America to the Americans unless you have deep pockets.