Profit not Revenue is the Ultimate Game Plan

It is amazing how many business owners are so wound up in the product and service they are delivering that they neglect the profitability of their business. Profit is the lifeblood of any business, and it is critical that we spend time as business owners to nurture and invest in creating profit for the products and services we sell.

When it comes to driving profit, I believe there is no silver bullet but rather a number of levers you can pull which, when combined, can dramatically impact what funds you have to reinvest, pay down capital and drive business growth.

The fundamentals of increasing profit generation are increasing revenues, decreasing the cost of goods and decreasing overhead costs. If you can do this and impact each by only 5%, this will drive a whopping 46% increase in net profit for your business.

It fascinates me how many businesses just focus on increasing revenues. Yes, revenue growth is important, but it is just one set of levers.