The basic measures of business are top line & bottom line. Top line is the total revenues that you generated in a business in particular year. Growing top line indicates that your business is growing and not stagnant. It is basically a multiplication of number of units you sold with the unit price. When top line grows, there is increase in at least one of them.
Bottom Line is the basic profit that you made. This comes from top line minus the expenses & purchases. Whatever your top line is, you should have healthy bottom line. Increasing Bottom Line is the basic purpose of business. If you have constant top line i.e. sustainable sales, you can increase your bottom line by decreasing the expenses. If you are not able to increase sales, you should control expenses. You can control them by use of automation, decreasing repeatable tasks, reducing raw material costs, extending credit period thereby decreasing finance cost, think of capital investments so your running costs come down.
Other way to increase bottom line is to increase top line keeping the expenses at current levels.
T.L. - E = B.L.
Above equation will ease your outlook. To increase B.L., increase T.L. or decrease E.
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