Profit Maximization Consultation for a Small Business
Why do I need a Profit Maximization Consultation?
When times are good, businesses feel encouraged to hire staff, move into new, larger premises and diversify product ranges. Sometimes they are also prone to extravagance without really feeling the effects.
But when things get tough, they must seek more efficient ways of doing things and question every single decision much, much more carefully.
Unfortunately many small business owners are not all that aware that there are many ways in which financial performance of their business can be improved.
And when you bring up the subject of Profit Maximization
, their response often sounds something like this:
Wow, that sounds like something lots of businesses need... just not my business. We're already saving all the money
we can.
The ugly truth is that many companies are bleeding profits through a thousand little cuts and nobody really knows it.
That's the cost side. What about margins? Do your products generate sufficient gross margin? Do you have a good product mix?
To answer these questions, you need a good inventory control system. Do you know how many small businesses don't even know their product costs? That is really scary! It's like flying an airplane with blinders on.
Determinants of Profitability
During the consultation, I look at the key determinants of profitability:
- Customer profitability
- Product profitability
- Expense levels
- Balance Sheet strength
- Cash Flow
I then assist the small business owner in devising a set of steps to improve any areas which have been exposed as having a negative effect on profitability. Sometimes that also necessitates improvements in reporting capabilities. Without accurate reporting, progress can not be measured.
Call 951-693-5931 today to schedule your consultation!
For full description of services offered, please go to the Services page.
