Is Efficiency a Better Indication of Success Than Sales?

While most assume a high number of sales is the key to a successful business, efficiency has far more to do with a company’s longevity. While sales may be high, if a company has to put out a large sum to cover labor and wage, brick and mortar upkeep, or equipment maintenance, the amount left over may not be great enough to keep the business a float. Efficiency can be measured by the amount of money left over from sales after all the overhead is paid.

Key Takeaways:

• Efficiency is a mathematical equation that measures output (sales) and input (costs) to determine the bang for the buck.
• You have to mind the overall efficiency in the design of the full-service concept to maximize the likelihood of success.
• As you complete this evaluation, make sure that it is done in an objective and quantifiable way

“The more output and the fewer the inputs, the more efficient the concept is in terms of efficiency of dollars, which is the most important measure of efficiency.”

Read more: https://www.foodnewsfeed.com/fsr/vendor-bylines/efficiency-better-indication-success-sales