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Why Sales Traction and Stability Are Important to Business Valuation

When it comes to business valuation, sales traction and stability are often overlooked. Many business valuation topics deal with vision, revenue potential, management quality, production set-up, and other intangible qualities. Without stable sales, it can be difficult for a business to plan for the future, especially if it depends on one or a few key customers. Many businesses fail to maintain sales traction and stability because they become too dependent on one or two key products or services. Although these large sales orders are great for individual companies, they can be detrimental to an organization’s overall health and valuation.

Traction control helps a car regain traction if it starts to skid. It uses a variety of sensors, including a speed sensor from the anti-lock brake system. It intervenes when the car’s path is no longer parallel to the intended path. The steering input must be full lock or a sharp angle to indicate understeering. Both of these sensors provide information to the car’s control system.

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