Posts Tagged "business health check"

Find Your Profit Leaks

Posted by on Sep 16, 2015 in Blog

Find Your Profit Leaks

As a small business owner, you are probably well aware that your business must operate at a profit if it is to survive for any length of time. Former UK MP and businessman Paul Marsden once famously said that, “business is all about solving people’s problems – at a profit”. But determining how much money you need to make in order for your business to be profitable in the long term is a bit more complicated than simply adding up all of the money that you’ve earned and subtracting it from the total cost of your production. While boosting your revenues, managing your cash flows and controlling costs are all important aspects of running a profitable business; if you aren’t making the amount of money that you should be, it’s very likely that you have a profit leak. Profit leaks come in many forms and can range from something as simple as losing out on revenue because you forget to invoice your clients promptly to having to pay a higher tax bill because your system failed to automatically record all of your transactions. Because profit leaks can come from so many sources, tracking down your profit leaks can be quite...

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