Your profits matter. Focus matters. Your action matters. 
As a business owner, there are three areas you want to consider as you look to build your business profits. Spending time in these areas will make a significant difference in your business.
Too often, we know of a specific area of our business that needs attention but we do not make time to work on it. I am suggesting that you take a few small steps (a nominal amount of time) to shine the light and get the ball rolling.
Three key areas:
Expenses
Stack rank your expenses, from high to low, either for the last quarter or last year.
Look at all of them with an eye for reduction. Ask yourself the following questions:
- Is there an expense that consistently over budget? If so, why?
- Is this expense contributing to my overall business in a positive way?
- Is this expense absolutely needed?
- Can this expense be done in a different way, such as outsource vs in-house, reduced, or eliminated?
My guess is that there is some “fat” in your business that could be eliminated or reduced. Doing so will immediately impact your bottom line profits. The time spent to figure this out means more money in your bank account.
Clients
Stack rank your clients by revenue, from high to low, either for the last quarter or last year.
Look at all of the clients with an analytical eye for revenue growth. Ask yourself the following questions:
- Is the revenue of your largest client at the same level, grown or declined? Why?
- Are some of your larger clients aware of your new service or products?
- Are there some lower revenue clients that require a high maintenance level of service, negatively impacting your resources and profits?
- Do clients routinely refer you and your business to others?
- Do you have strong testimonials from the top clients for your marketing materials?
A client review is always valuable to do, so that you can evaluate where there might be opportunities for more revenue and profits. Take time to do this review on a routine basis.
Staff
Stack rank your employees in terms of salary, from high to low.
Look at all of the employees on staff with a critical eye for future growth – that of business and their development. Ask yourself the following questions:
- Are the higher paid employees producing the level of work that is expected of them?
- Are there any consistent under-performers that need to be addressed?
- Is the amount of payroll consistent with your business size and revenue?
A business thrives with engaged, productive employees. Your future business growth depends on the caliber and strength of your employees. If you have personnel issues, the sooner you spend time to address the situation – the sooner your business will be positively impacted.
Allocate time to look at these important three areas. Depending on how automated your systems are, it may take less than an hour to gather this data. Then, take time to analyze the information to determine what strategic decisions should be made. Likely, there are untapped profits available to be made. Shift your focus on the right areas that need attention. Do it now!