The world of business and finances is a tricky one to navigate if you're a newbie. Take one left turn into an investment you're unsure of and all of a sudden the only asset you have left is your office sign. You need to be careful or else you can literally find yourself without a shirt on. Especially if you're a small business owner. Luckily for you we here at GrowthIndustries.ca are here to help you learn more about the business world so that you won't go bankrupt making a mistake.
One thing you should be aware of when dealing with the market is market share. A portion of or a percentage of sales dealing with a particular service or product sold in specific region by one controlling company is market share. Basically it's the share of the market they own based on how much product they've sold. Say, for example, in a given market like pump products, there were 10,000 replacement parts sold and the company Abba Parts sold 8,000 of them - that means they have an 80% market share of pump parts in that particular area because they sold 80% of the product in that market. Market share doesn't have to be calculated solely by units sold. Market share can also be calculated by revenue.
Businesses use market share to help them figure out what their competitive strength is in a particular sector compared to their competition in the same sector. You always want to know what areas you are better at than your competitors and make it stronger. Knowing what the market share for your company also allows you to accurately assess the performance of your company from year to year.
Another great way to assess your company's performance is to make use of the services of an accounting firm (like Huron Partners). Their role is to record your revenue and expense data and track your assets and then summarize this information in such a way that you have an accurate and complete picture of your company's financial health. They can also make recommendations for improving your situation, based on your past data.
If you find your market share lacking then there are ways to improve it. You can make your product or service better, change the price of your product or service, offer incentives for buyers, or find different distribution methods so that your product or service is available in more locations or have a better advertisement promotion of your product or service. Any single one of those ideas can help improve your market share in some way. You just need to make sure to manage your market share in a way you can afford. No point in raising the advertising budget if you can't afford to do so. You would just be transferring losses from one column to another.