I was meeting with a business owner the other day, and we had a conversation we have had several times before: Why aren’t they making more money?
Does this sound like you?
They are investing in more people, they are opening more locations, and they have more sales. Isn’t that pretty sweet?
AND, their bottom line isn’t growing.
I know you might think what that business owner thought: it is all going into more people and more locations….you have to invest to grow…it will all pay off in the end. And, there is some truth to that.
So, everyone in their organization is focused on growing sales.
AND, who is focused on growing the bottom line? Is anyone being asked to grow the gross profit percentage by some small amount on each bid? Do they know what the gross profit percentage is? Does each person understand how he/she contributes to the bottom line? What if everyone in your organization understood how their job contributes to profits? What if they knew what the bottom line was-how little it is?
Is there one thing you could do today to help your team contribute more to the bottom line? Isn’t making money at least one small part of why you are in business?
If you have a great idea, please share it.