Another Year of Record Breaking Revenue
2018 was another record breaking year for the company. We achieved 54% more sales compared to the previous year. Furthermore, we broke the 60,000,000 sales revenue barrier. Not too shabby for a 4 year old company with just 8 FTEs for most of the year.
We were able to achieve more sales because we are efficient. We always implemented our blueprint sales process that consists of specific steps on how to convert sales orders to purchase orders and invoices. Lead times are assigned per process to make sure all sales orders are met within the designated time frame. Once sales orders are invoiced, there is a delivery lead time that needs to be met. Our company has a 93% delivery rate meaning we deliver invoices on time 93% of the time.
We were able to finally hire 3 full time employees to help us grow the company. We hired an Operations Manager, Purchaser and a Sales Admin Assistant.
The Operations Manager is in charge of day to day operations of the company from sales and marketing, purchasing and delivery. Having an Operations Manager ensures that the end to end sales process is met with efficiency and regularity.
The Sales Admin Assistant was a valuable hire since she will be in charge of collections and petty cash disbursement. Our average collection period decreased to just 13 days last year largely through the positive efforts of our Sales Admin Assistant.
We went through 2 Purchasers for the previous year and we were able to hire a Purchaser that fit our needs. Together with the Purchaser, we also hired a Purchasing Assistant. The Purchasing Assistant is in charge of receiving items from suppliers and dispatching items for delivery. The Purchasing Assistant is also our main warehouse guy.
2018 was a roaring year. Every significant financial metric went up.
- Sales Revenue increased 54% in 2018 compared to 2017
- Gross Profit increased 12% and Net Profit increased 22%
- Cash increased 23% in 2018 compared to 2017
Sales by Items and Financial Ratios
Below is our financial ratios for the past 4 years. As you can see, all financial ratios are solid and convey irrefutable data that we are a sound company. To understand the definitions of financial ratios, you can check out Investopedia.
Good to note that ever since we started the company, we haven’t had a down year and every year there is a significant increase in sales and margins. We swear by these financial ratios as we think that measuring these ratios helps us decide the best course of action for the company.