Question

The primary driver of making money is to grow revenues. What are some of the things that an organization must pay close attention to in order to ensure its financial health? Why is it important and When can you apply this information?

Please advise.

Answer 1

Some of the major parameters that a company has to take care of in order to ensure that they are always making good money and also the importance and usage are explained as:

• Customer acquisition cost should be as low as possible so that money can be saved in attaining new customers. This holds a lot of importance as money saved is money earned for the organization and it is reflected in the balance sheets of the organization. This can be applied when the company is introducing a new product in the market.
• Retaining Customers also directly impacts the financial health of the organization and is importance because the bounce rate of the customers causes a lot of financial loss for the organization and should be used when the product is approaching the maturity stage.
• Corporate Social Responsibility improves the image of the organization and more nd more people prefer such organizations.
• Abide by government rules and regulations to avoid fines and closure of business units.

Investing in other firms and Making money through unrelated industries so that the organization is not putting all its eggs in one basket. Also the company should maintain quality so that more and more products sell at a faster rate ensuring much better financial health.