If you ever tell yourself: “I should be earning more for all the effort I put into this business” then this is for you. Many business owners feel like you – but get trapped in the “It will get better next year” trap. The prime reason we see this pattern repeating for business owners is that they aren’t understanding and monitoring where they are making their gross profit.
I recently sat down with a business and within an hour had identified $250,000 of additional profit that they were leaving on the table every single year. They didn’t need to increase their costs at all to earn this extra profit.
They hadn’t realised they were missing out on this profit because they hadn’t ever reviewed or understood what drove their gross profit. Their Cost of Goods and Staff Productivity were overlooked key opportunities because they were simply too ‘busy’ keeping up with the work in front of them.
We have a saying at Red Hot that ‘If working harder is the only answer, then you’re asking the wrong question’. It’s our job to ask good questions, delve under the hood of profitable businesses like yours, and see the opportunities for greater profits and ways to reduce your workload (and stress).
Ask around about us or get in touch with us to find out more.