Really the application of this is quite simple. Most business owners already do this ratio on the fly.
The application is quite simple also. If you are at a zero, then you need to go over your marketing plan and your sales processes to figure out what happened. Remember, the economy is not an excuse! There are always things a business owner can do when an economy turns down to be able to maintain or increase sales.
That being said, if you have a current Sales Growth Consistency of more than a 1 or a 2 currently, you are to be commended! Surviving and growing has required a lot of creativity and aggressiveness lately.
Of course growing has required a good accounting foundation and…
…Your business THRIVES on a solid FOUNDATION!!!