Own Your Business Tip: Profitability from Phillip Dopson

Profitability is a two-sided coin. On one side is sales-making and the other is cost-control. That means if we're not outselling we're being outsold, and also that we need to find ways to cut costs without cutting corners. 

Business don't close because they run out of cash, they close because they spent their money on the wrong things. Below are a few simple components that you should think about as business owners.

Pay your monthly invoices - Does your hourly team have any idea what you pay every month for all the components or your business. This may help you teach them how the smallest things do really matter.

Think big - Don't invest time, money and resources toward something that has a small payoff.  Identify and focus on the largest cost-savings opportunities in your business.

P&L 101 Daily - Teach your employees how little you make as a business before you teach them how to sell more and talk to them only about cutting costs.

 Return-on-Retention - Labor cost is not your biggest controllable expense, retention is.

Don’t wait till you are forced to make a change to retain your business stay ahead of the competitor and you eye on what counts and you should have no problem keeping what you have and growing it.