Career Tip #10: Go Where There’s Margin Growth

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The tabloid paparazzi attacks a story they know will sell magazines. Hence you see five tabloid covers at the supermarket all covering Brad and Jennifer’s break up, for example.

Similarly, executives swarm around areas of the company that margin dollars. They will focus there, invest there, and grow that area as quickly as they can. And it is there where you can also find career growth.

In any company with multiple product lines or divisions there are some parts of the company that have high margin % and/or high revenue growth (preferably both), and some that don’t.

For Dell, for example, there’s high margin and high growth in servers, storage, and service. You find lower margin % and lower growth (yet an unfortunate large % of Dell’s revenue) in workstations, desktops, and consumer laptops. Which divisions do you think will hire more people and the best people? Managers in those high margin divisions are growing their career and learning things other companies want.

Are you in a position to help your company grow a high margin category? Can you learn a new skill that helps grow a high-margin category?

Remember, the ideal situation is high margin % and high revenue growth. If management is smart, they are trying to grow margin dollars (a.k.a. profits). If only 5% of your revenue has high margin % and is growing slower you’re your overall business that’s not the greatest place to be. But if a high margin % part of your company is growing twice as fast as the rest of the company revenue growth, that’s a sweet spot.

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