Don’t Ignore Your Business’ Financial Potential!

Previously we have talked about how important it is to have, know and understand your P&L statement, as it can be used to generate instant profits without costing you more money. But even so, does it mean that the figures on your P&L statement are actually any good?

These figures would need to be above average for your business to continue showing a profit, and to allow you to discover your business’ financial potential. Therefore, you need to determine where your business fits in when it comes to your competitors and their gross profit percentage.

The best way to do this is to Google ‘gross profit margin by industry,’ study the contents of three diverse sources and find the average gross profit percentage (recent figures). Once you’ve done this, you will be able to compare the figures to your own GP percentage.

Should you find that your GP percentage is below average or even ‘mediocre,’ it is time to make some changes and use the tips discussed in previous blogs to exceed the GP percentage for your business.

Furthermore, you should be investing in marketing or cost-free methods to build your brand. There are several ways to present your business services to your ideal audience without breaking the bank which should be discussed with your marketing agency.

While you are working on improving your GP average and marketing your business, it is of the essence that you continue to cut overhead costs to see you through to the top. One can only reach the pinnacle of success once unnecessary spending has been cut and other cost-saving measures followed.

It is always important to know exactly where your money is going each month, and if there are streams of unnecessary costs, it should be redirected into an avenue that will build your business, and not take from it.

My name is Allan Hirsh. I am an Executive Leadership Advisor, experienced business owner, CEO, entrepreneur, and community leader. I also authored 45-Minute Breakthroughs and can help you discover your business’ financial potential. Contact me today to book a consultation:


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