07/13/2023
When it comes to building a successful business, profit margins must be kept top of mind. 📈
In our years of having “behind the scenes” access to both Fortune 500 companies and smaller scaling businesses, we’ve seen operational models that weren’t scaleable nor sustainable. We’ve worked with CEO’s that are hanging on the threads of a 5% margin.
Sure, bringing in 100k a month is great, but if your expenses are exceeding that revenue—there’s trouble ahead. 😬 Thankfully, there are many ways you can turn things around and improve your profit margins. We thought we’d get started with the top 3 most simple shifts you can make today to get you out of the red (or stop you from heading into the red).
✅ Standardizing Processes: This is the bread and butter of what we do. It’s amazing what you can discover as you go through a process that no one has taken time to look at in years. And especially when you being in a neutral fresh pair of eyes.
✅ Reducing Costs: This is a simple one that you can complete within a week or two. You can get rid of technology that’s too costly, change your subscription plan, find alternative solutions or build processes around credit card spend and purchases.
✅ Staying Lean (when hiring): Let’s be honest, hiring can become expensive quickly. And the last thing you want is to hire the wrong person or to have them sitting around with nothing to do. This is why having processes in place first and understanding how a new hire fits into that workflow is a must.
Profit margins provide insights into so much more than just numbers. Don’t underestimate the value in taking a step back to analyze them. That might be what you need to be truly profitable.
