Using the new definition, you take profits first and have a big restriction on spending.  

Benchmarking

Benchmarking is the process of comparing one's business processes and critical variables to industry averages and industry best. A simple example of this would be this - your business has a profit of 7%, the industry average is 9% and the industry best is 12%.  Your business might be leaving 2-5% somewhere in the business.  The way you find the areas that is draining profits is to look at individual categories that have a variance from industry norms.  You can look for industry averages on the internet.  Banks uses RMA (Risk Management Association http://www.rmahq.org/)

You can use a similar method to compare historic trends in your business.  If you had a 9% profit margin 3 years ago, why is it 7% now. 

How to generate more profits

The definition of profits is defined by the following equation.

Revenue - Expenses = Profits

This means that there are in essence only two variables that contribute to bottom line profits.  To improve profits, you must increase sales(Revenue) or reduce costs(Expenses).  Simple in theory, difficult in real world practice, but let me try to show you some ideas.

Profit ideas

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We can help

we do this every day, we have the resources and experience to do this is in a quick and efficient manner and it's part of our standard business check-up.  We have numerous other tools and ideas that can drive your bottom line higher as well.  Contact me now to get started

Forced Profit margins

Reverse engineer profits.  instead of thinking about profits as an outcome, set the expectation of your profits and work backwards.

Contact me now to get started.