Income Statement – Efficient Businesses


income statement 70x70 Income Statement   Efficient BusinessesAn efficient businesses is agile; not burdened by the overhead of paying for components that don’t add any value to the bottom line. The more lean and efficient a business the more options that business has open to it in terms of controlling its future.

If a business is able to produce a product for $1 and sell it for $5 while its competitor can produce the same product for $3 this efficient business has two wonderful options:

  1. Driving the competitor out of business by pushing retail lower say to $2. The business is still profiting meanwhile its competition is loosing massive amounts of capital if it wants to stay competitive.

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