Operational Inefficiencies

If you have Gross Profit, the next step is to deduct your Expenses to determine Net Profit. Expenses can easily be lumped into a pile and overlooked as “necessary”.  Plan half and day and dig in to truly understand what you spend.

Here are a few inefficiencies that we see often in Expenses:

In summary, ask yourself:

  1. If you had to cut 20% from your business, where would you do it?
  2. How can you save on all expenses?
  3. Which expenses directly affect sales and revenues?
  4. What would it take to downsize?

These are tough questions, but having the answers are the first step to righting your profitability.