If you are like most business people, you have probably been feeling your profit margins tighten as we have gone through this year. If not, you are truly living a “charmed life…” Frankly, I believe most of us have been feeling this effect, given the ridiculous prices of fuel, fertilizer, and general repairs, both at home & in our businesses.
What’s driving this? I believe it’s a combination of foolish policies and terribly poor planning on the part of those in charge of setting our country’s direction. What is the answer?
It’s rather “Spartan,” but I suggest you “prepare for battle.” Not literally, of course, but rather from the perspective that you must be on guard in terms of costs. For example, I’ve been hearing that our costs of doing business will likely be rising in 2023. Really? I guess the same folks doing these measurements have not noticed that the cost of flights has already doubled and fuel is up at least 50%…
Most importantly, do you know what your costs of production truly are? Recall that I have shared many times that if you measure your costs, you can understand them. If you understand them, you will be better able to control them, and, of course, if you can control them, you can improve them.
This is crucial, because it forms the very basis of Break-Even Analysis. This is true for any operation, regardless of its size. Break-Even Analysis takes your Revenue & Expenses and then tells you what items you need to change, with all other items remaining the same, to reach your Break-Even Level, the point at which you will not lose money.
It is far better to be on the leading edge of this than to be playing “catch-up.” Why wait? If I can assist you with this process, please contact me at your earliest convenience. As industrial magnate Charles M. Schwab stated: “Keeping a little ahead of conditions is one of the secrets of business…”
Let’s take your business to the Next Level!