Viewing A Business Beyond Top & Bottom Lines
The vast majority of small business owners I run into just view their business based on their top line or revenues and bottom line or cash in the bank. Unfortunately, as a result they leave money or profits on the table and don't maximize their profits. Why? Because they fail to efficiently allocate their resources which includes not only money but time. For example, if all you do as a business owner is track total top line revenues how do you know which products are growing and at what rates? More importantly, which products higher gross margin than others? Or better yet which products produce the best bid proposal win rates thus taking less time? On this latter point most businesses don't track there win ratios and thus don't understand why they lose to competitors. Further proposals take time and if you are not likely to win one based on past history you either have to fix why your losing or allocate that time to those jobs which make more money or better gross margins. You see all these factors come into play when a business is more or less profitable than its competitors. And if your more profitable that gives you more flexibility to use price to gain market share if so desired.
At CCS, we not only dig deep measuring, tracking and analyzing your top and bottom lines, but everything in between such expenses and financing/debt. We do so through by creating a numeric model and then providing a forecast for the business to better plan.
Contact us to better understand how we use our 5 Step Process to install financial controls to
monitor, measure and analyze profitability. To gain from our insights please contact us or sign up for email updates via https://www.charlotteconsultantservices.com/news-update.
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