Getting into your numbers mini-series part 1:
1: IT’S NOT ENOUGH TO LOOK AT THE TOP LINE (REVENUE)
A growing business was showing doubled revenue over the course of five years. This was fantastic. Sales were at an all time high and there was more demand than ever. (His top line graph looked like the one below.)
But the business owner was stressed, feeling very overworked, and didn’t seem to have much more money in his pocket than in previous years. And for all his sales success, he definitely didn’t have any extra time.
Since his revenue was steadily climbing, he thought he really had no cause for complaint. But his own gut feeling was that for all the work he was doing, he really shouldn’t be this stressed, and he should feel more affluent than he did.
He told me about his business and the challenges he was facing and that gave me an idea where in the data to start looking to find the root of the problem. Happily, we found it, and we also found a number of possible solutions.
On analysis of the business numbers, we found that some of the services he offered were actually losing money. In fact, he would have made more money if he hadn’t even offered those services, and he would have saved himself hours of hard work every week.
Now, since we had all the information, we were able to look at why certain services were unprofitable, and he could make an empowered decision over how to create more money, more time and reduce stress – either by adjusting his efforts and making all the services profitable, or dropping them and focusing on the profitable services.
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Are you looking at the whole picture in your business? Or just one or two metrics? If you’d like to simplify and grow your business, and take home more profit, you need to get into these numbers! Message Rhoda Gold now to set up your free consultation.
Read the next in the mini-series: 2. It’s not enough to look at your bottom line (profit) either