Establishing Small Business Profitability

Most small business woes boil down to one thing; profitability. Because really, that’s what it’s all about. As small business owners, we judge our success by our bottom line – not how well the business ran yesterday, but how profitable it was. If your business isn’t paying the bills, it’s not going to be around much longer. Then even if it is paying the bills, is there anything left at the end of the day for all your hard work?

According to Mike Rudd, a systematic financial review can lead to greater profits. He mentioned in the online pdf file - There are several elements within a small business environment that should be analyzed and reviewed to establish potential profitability as compared to current performance.

The several elements as mentioned are:

  • Financial Statement Review
  • Quantifying Financial Impact
  • Accounts Receivable
  • Inventory Analysis
  • Sales and Margin Mix
  • Break even Pricing
  • Labor Incentives
  • Reducing variable or direct costs
  • Benchmarking

Read more on details for these elements on Establishing small business profitability.

1 comment:

dannielo said...

If you would like a tool to manage your small business activities and Projects, you can use this aplication:

You can use it to manage and prioritize your Goals (for business but also in other areas of your life), Projects and Tasks. It has a Checklists section, for the routines and repetitive activities that any business has to do. Also, it features a Schedules section and a Calendar, for scheduling you time and activities.

Some features from GTD are also present, like Contexts and Next Actions.

And it's available on the mobile phone too, so you can access it from anywhere.