Key factors for the profitable growth of your business

When talking about business growth, we can think of increasing sales, improving prices, increasing market share; But when the equation includes profitability, you may be surprised that there are variables that are more important.

Although, the business sector in Mexico presents a positive outlook due to the investment of 3.5 trillion pesos in the sector this year, and the sustained economic growth rates for 7 consecutive years that show an average record of up to 2.7% (INEGI) It is important to ask ourselves: What are the keys to the growth and profitability of a business? Why the importance of these issues?

Taking into account the growth variable, the what, who, how and where that concern the business must be taken into account to establish profitable growth strategies following the next objetives:

What? Value proposition offered to the market and what needs it seeks to cover.
Who? Who serves customers and who are customers.
How? How the company operates and how the competition operates.
Where? Where the company operates.
To this equation is added the variable that concerns us in this article, profitability. According to experts in strategies and business models:

“On many occasions, the company grows but profits are not keeping pace and neither is profitability in terms of return on assets. The situation is that the expenses, both fixed and variable, increase in such a way that the increase in the gross contribution of the company is not reflected in the operating profit ”.

A study carried out on 132 Latin American companies listed on the stock exchange (study carried out by Sintec Customer and Operations and published in the ProMagazine magazine), reveals that more than 60% of businesses do not achieve profitable growth due to not taking into account strategic management .

There are commercial partners willing to support and facilitate the profitable growth of a business, a clear example is the company TIP México who, in addition to having more than 24 years of experience in the vehicle leasing market, supports companies to:

Optimize their expenses and operating costs through the leasing and value-added services of vehicle fleets, that is, companies can begin to improve their expenses and operating costs by stopping buying assets that depreciate and beginning to acquire assets that lean the financial balance towards a profitable business.
Improve the return on assets since within the benefits of the lease, the tax deduction plans are 100% both in monthly payments and additional services.
Generate business opportunities for companies, since thanks to the leasing they are not decapitalized, allowing a greater cash flow available to invest in their growth, increasing profitability.
Offer value-added services such as speed of response, quality and costs. By having a vehicle fleet at the moment and in optimal conditions you can always offer your customers the best service.
To grow in a strategic and sustained way in any economic climate in our country, offering flexibility according to the needs of each client. TIP Mexico has proven to be the best commercial ally for Mexican companies to achieve this.