Are you in Danger of a Business Implosion?

| Categories: Business Growth , Business Tips , Implosion , KPIs , Revenue

Blog by Fuel Accountants


Recently the world was transfixed on a catastrophic event where several people lost their lives due to the implosion of a small submersible vessel called The Titan. 

Some people called the people involved heroic explorers, others called them silly for taking such a great risk.

Which camp are you in?

Either way, what I’d like to talk about is risk, and how to manage it by becoming a world class company and avoiding a catastrophic event.

What can you do to insulate your business against risk? The following are the 6 Key Process Indicators (KPI’s) that greatly reduce risk and and help your business break through to the next level:

Revenue Concentration: 

You should feel exposed if any one customer provides more than 20% of your total revenue. You might also be exposed if any revenue segment occupies more than 20% of your total revenue.

Sales Pipeline:

You should be watching your pipeline of revenue opportunities to make sure it is strong enough to maintain your revenue goals

Revenue Churn: 

Sometimes, even as revenue grows, the business is losing customers. Thus the lost opportunity of recurring revenue makes it harder to maintain the desired revenue growth. This can also be an indicator of problems in fulfilling customer demands.

Revenue Growth:

Top-line revenue growth is an important indicator that the business is healthy, and on a proper trajectory to meet its objectives.

EBITA Targets: 

Do your financials reflect your EBITA? (Earnings Before Interest, Taxes, Depreciation, and Amortization) EBITA is an important indicator that business is more than sustaining itself, and is, in fact, growing in value.

Employee Engagement: 

Your employees are volunteering their time to move the business forward. They are either engaged and passionate, apathetic, or in extreme cases dysfunctional to the business. It’s critical to provide an environment where they can excel and have passion for their roles in the business.

World class companies pay close attention to these 6 KPI’s, and you should be doing it too.

Need help measuring these? We can help establish them and we even have an online system where they can be tracked. So call us if you want to be world class!!

Need more advice?