PROFIT IMPROVEMENT

Overview

Businesses are run for many reasons and one very important one is to make a profit. Profit is not optional. Profit improvement is something that all businesses are continually striving for.

There are two basic ways to create an improvement in profits. The first is to place controls and reductions on expenses. This strategy will work for a limited time period, and although it is good business practice to monitor and control expenses on an ongoing basis, it is not the optimal way to achieve long term profit improvement.

The second way to achieve profit improvement is through growth in revenues and/or increased profit margins. The development of new products where high profit margins can be obtained, as well as the access to new markets with high profit margins are long lasting profit improvement strategies.

What We Do

• Assess budgeting. We ensure that all costs are included, and that standard labour and overhead hourly rates are set realistically.
• Review budgeting and the budget review process.
• Control and reduce expenses where necessary.
• Investigate new inventory suppliers and attempt to reduce expenses related to the cost of sales.
• Conduct a product/customer profitability analysis to highlight products that require improvement either in sales volume or in profit margin.
• Investigate cost effective ways to expand sales and create new markets.
• Investigate new product opportunities.

Your Results

Boardroom Innovations will make sure:

• Budgets are established and corrected if necessary.
• Your costings are realistic.
• Excessive and redundant expenses have been identified and either reduced or eliminated.
• Suppliers have been reviewed for pricing and appropriate negotiations have taken place that will reduce cost of sales and increase margins.
• New markets and product lines have been identified.