Be aware: If you don't prioritize your profit, someone else will take it
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My experience with small business owners is that profit is an after-thought. A brief moment when they open the email from their bookkeeper with their Profit & Loss Statement is attached. They open the attachment and scroll straight to the bottom. There is a number there which they often do not understand.
Maybe it is good number but they wonder why the bank account does not have the same number in it.
Or, it is a "bad" number and they wonder "how did it get to that number?"
They scroll up and see a list of numbers some of which make some sense but most don't.
"Why does it say $3,500 in Dues & Subscriptions?"
"Is my payroll really $43,712 every 2 weeks?"
"What is a COGS?"
"Yikes, Meals & Entertainment was THAT? No more Chipotle for the team."
After a few minutes, they sigh, close the attachment and head to the next priority or meeting.
Mistakenly, they believe that if they just sell more, it will make that number better. Not likely. The only thing that makes that number better is understanding the number and making tough decisions.
Every business owner should set a profit goal and each and every transaction in a business needs to be measured against that profit goal. Does this expense make me more profit or does it eat my profit? Is my price allowing me to make a good profit margin? Are these fixed expenses absolutely necessary or are they eating my profit? Am I paying too much for these offices, computers, coffee, lunches?
I offer a free Profit Analysis. Why not have a professional take a look at your numbers and open your eyes?
