Profit Improvement

Concerns:

• “My margins are slipping and I don’t know why”
• “Our company should be more profitable given our size, industry, and age”

Solutions:

• Forecast 12-month financial income statements (including forecast balance sheets and cash flow statements). Obtain Updated forecasts with “what-if” scenarios.
• Assign managers profit responsibility. Have monthly operational meetings where operating plans are adjusted according to actuals, and review operations for bottlenecks, unnecessary workflow, improper hand-off, and inconsistent quality.
• Find non-core functions that can be outsourced in order to reduce fixed costs.
• Determine your break-even point so you know which contracts to accept or reject.