Think of your business as a system.
Just like any system, it has inputs (raw materials, money, labour, etc.) and outputs (products or services). The goal of any business is to maximise output from any given input. In other words, you want to get the most bang for your buck. That's where throughput comes in.
What is Throughput?
Throughput is the measure of how much work a system can do in a given period of time. In business terms, it's a measure of how much revenue a company can generate in a given period of time. The higher the throughput, the more efficient the company. And the more efficient the company, the more profitable it will be.
There are two types of throughput:
- Operational throughput: This is the measure of how many products or services a company can produce in a given period of time.
- Financial throughput: This is the measure of how much revenue a company can generate in a given period of time.
Why is Throughput Important?
Throughput is essential to business growth because it's a measure of efficiency. The more efficient a company is, the more profitable it will be. And the more profitable a company is, the faster it will grow.
Think you might need to improve your business throughput?
Send me a message and let's develop your "Throughput Improvement Plan"
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