Not making all the money you want? We didn’t think so. Never forget that profits are not the same as revenue. Before falling in love with your increasing top line, be sure you don’t lose sight of those things that make the difference in your bottom line: the things that drive profits.
Working with business owners and executives, I’ve seen the following four areas as almost universal low-hanging fruit to boost profit. Are you making any of the following mistakes?
You don’t pay attention to your costs and expenses:
Every one of them. Know your vendors, their goals and your options. Don’t know your costs inside and out? Shame on you. How can you drive profits without complete understanding of every dollar that goes in or out of your business?
You don’t know your market:
Competition creates pricing pressure. Competitors are coming at you from every angle imaginable. You can sit back and wait to be ejected from the game, or you can be proactive or you can do something about it. Customers are smarter, less inclined to buy and critical of value propositions. Begin by knowing everything you can about your market. Nothing pays bigger dividends.
You don’t drive profits by selling what’s profitable:
You make more money on some things than you do on others. Do you know your top profit items? Is your sales team incentivized to sell them? Do you actively work to promote your most profitable items?
You don’t cull your herd:
Not all customers are created equal. Some customers are ATM machines. Others are black holes. You need to know how to tell the difference and get rid of the block holes.
Take a few hours and pick just one of these areas. Drill into them within the context of your business. Fix the problems you find.
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Whittle & Partners is a consulting group that provides EOS™ Implementation in the United States and beyond. We offer in-person and online solutions to fit your business and schedule.Visit our about us page to learn how and why we love bringing Dallas Traction.
Jeff Whittle is a Certified Dallas EOS Implementer.
Meet the Founder
Jeff Whittle founded and launched Whittle & Partners in 2011. Before that, Jeff practiced law in Dallas for 15 years and has an additional 20 years of executive business experience. He has run businesses ranging from startups to 300-employee operations.