What is a Ramp Up?
A ramp up is an increase in the amount of products or services a company sells, usually by expansion into new markets or geographic regions.
How Does a Ramp Up Work?
Let's say John Doe opens a sandwich shop. He offers custom breads, imported meats, specialty cheeses and unusual toppings. Customers are lined up all day every day.
John opens five more stores in other neighborhoods and decides that he wants to go national. In order to ramp up, he decides to sell franchises in 15 other states. It takes a year to open all the stores, but by the end of the year, his sandwich shop has 100 locations.
Why Does a Ramp Up Matter?
In any business's life cycle, the ramp up is a time when the quality of execution is crucial, because the skill and effort it takes to increase a company's output requires expert capital deployment and management ability. However, the ramp up is also how companies take advantage of their existing infrastructure (their fixed costs) and use it to generate more profits.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
The image that a lot folks get in their heads when they hear the term "employee stock options"...
Read More →
Have you been tempted to open a credit account in your favorite store to earn a discount on your purchase or perhaps even...
Read More →
There's more than one way to skin a cat, as illustrated by the three unique ways the three best performing stocks of the last...
Read More →
Believe it or not, investing can be a lot like putting your wardrobe together. You can mix and...
Read More →
