Profitability Analysis

Answering the question - Where can I find additional profits?

There are three major areas for any business to look in to discover additional profits:

• Reduce overhead costs by improving your business processes.
     Learn More»  Business Process Improvement
• Eliminate unprofitable products or services.
     Learn More»  Unprofitable Products and Services Analysis
• Eliminate unprofitable customers.
     Learn More»  Unprofitable Customers Analysis

None of these things are easy to do. If they were, you would have already done it. To analyze business processes, products, or customers requires organizing a considerable amount of data and making many judgement calls. However, the process can be very rewarding in not only immediate results, but long term. Just imagine how much more money you would make in your business career if your bottom line was consistently 1% higher than your competitions. This is a very doable thing if you design your management process to focus on profitability.

Is it possible that most businesses are not focused on profits? Absolutely! We all tend to get caught up in everyday problems and processes. Just keeping prices updated, dealing with employee's who did not show up for work, and customer complaints to mention a few of the things that must be done, but distract you from profitability. Just think about all the things you have done today. How many of those things were aimed directly at improving profits? Outside help from a firm like ours can bring back that focus.

There is good news for most businesses that haven't tried this approach to increasing profits. There is a lot of low-hanging fruit that can produce almost immediate results. You already probably have a good idea of what business processes are overly complex so that spending a lot of time deciding which systems need work is probably not necessary. You might also have the data available, that organized correctly, could produce a list of products or customers sortable by profitability. We are accountant's with considerable software development experience and this kind of work is right down our alley.