Brooklyn's Progress
June/July 2006

If you’re like most businessmen and women, increasing your company’s profitability probably sits near the top of your to do list–even keeping a few of you awake at night.  If that’s the case, have a look at the following simple program for raising your profits.  It may serve to calm your nerves as well as put more money in your pocketbook.

1. Check your business pulse.  If you have the cash flow/cash on hand to easily meet your bills for the next few months, then you and your business have room to breath.
2. Decide on a monthly profitability indicator.  Gross profits work well, although the more conservative may choose net profits, either before or after taxes.
3. Address both sides of your balance sheet simultaneously: target your top three expenses as well as your top three customers.
4. Analyze the expenses and take action to reduce each by 5%.
5. Speak with your top customers to find what they value most about your product or service and what they’d like to see improved.  Begin applying these lessons.
6. Track your results monthly.  If you’re not satisfied, widen your net of targets and/or invite selected employees and trusted colleagues to participate in the process.

And don’t forget that profitability is not just about the money.  If your business doesn’t support the quality of life you want to lead, examine that also.

Jeff Mordkowitz, president of The Profit Coach®, coaches small business owners and entrepreneurs on improving profitability without sacrificing quality of life.  For more information call 866-262-2456 or visit http://www.theprofitcoach.net/.  © Copyright 2006 Jeffrey A. Mordkowitz.