✈ January 31, 2018, Avicor Aviation Inc.
It makes sense. Something consistent is dependable, and the likelihood is that it fosters a greater sense of trust. When you trust something or someone, it has greater value.
This is true in relationships, but it is also true in business.
Consistent growth in revenues can be a great positive when looking at the value of an aviation business. Seeing consistent increases in the top line can appear to be very good and perhaps even generate interest from a prospective buyer whether you are looking for one or not. Watching your revenues increase may prompt a competitor to consider if they ought to buy you out, or enable an investor to see potential.
Growth can, however, come at a price that may undermine the value of that top line growth.
While most of us are familiar with the adage, "it takes money to make money," one of the most difficult challenges in a growing business is managing that growth so that the increase in expenses doesn't outpace the growth in revenues. The costs of hiring additional personnel, acquiring more equipment, or committing to more space too soon can greatly affect the bottom line and may result in longer term damage if not well managed. When opportunities for growth arise there are three key overarching steps that should be taken:
Often the third step, looking at the long term effects of decisions made now, gets overlooked. But that third step can be the key to developing and maintaining well-managed consistent growth.
To have consistent, well managed growth should be the goal of every aviation business. Steady consistent growth on both the top and bottom lines can indicate that the business is moving forward and that the likelihood is that it can expect to continue that growth in the future. Realistically, this can sometimes be a challenge given the way the aviation industry can be affected by regulatory decisions or changes in the overall economy, but this should still be a primary goal that every company should strive towards. Consistency in growth can help to maximize the value of your aviation business.
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To contact us directly, either email us at bizappraisal@avicoraviation.com or call us at at 1-503-973-5711 or 1-800-563-2359.
