How much profit are you making?
Seriously. Do you know?
Not knowing that is like a pilot flying with no dashboard or playing / watching tennis not looking at scoreboard and you do so at your own peril. The only way to grow a business is through profitability; we all liked to think it’s about the people –> but people are only part of it.
Cash profit also is THE most accurate indicator of business performance and sustainability of business performance so you must keep an eye on your profit at all timed.
In its simplest form:
Profit is sales less expenses.
The 2 factors affecting “profit” are $ sales & $ expenses.
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Sales : there are 3 components each which have separate strategies to implement. The 3 facilities are:
- Price
- Volume of transactions – to new & existing customers
- Customers – getting them to come back over and over (review my other posts to get a feel for where my head is at)
2. & 3. relate to leadership & training & re-enforcing standards at the coal face & all these “controllable” elements specifically controlled, contained & led by YOU.
My personal favorite approaches include :
– rewarding customers for loyalty
– smiling at our customers
– speaking banter with our customers
– prep for shift, setting SMART goals and reporting back to our team quickly and sharing results on staff noticeboards
– hiring smart people that fit in to our culture
– don’t be afraid to “expect more” from a committed team
Right now I’m strategizing over the horizon and tracking the trends and the business model format/s which will survive this “once in a 100 year” phenomena and I’ll be replicating said models.
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