How to identify opportunities for growth (the answer may surprise you…)
Understanding the gross profit margin of your services means you can identify powerful areas for growth.
For example if one service is more profitable than another you can focus on this, gain more business in this area and increase your overall profitability.
Knowing this would also provide you with confidence to hire additional staff.
On the other hand knowing your service costs can identify where staff arent being efficient and whether they need more training or you need to let them go.
Here are some other questions knowing this data can answer for you:
Are we running jobs on budget?
Who are the most profitable and least profitable clients?
Do we have operational inefficiencies?
Which clients do we need to re-price? Or fire?
Who are the most productive people?
When is the right time to hire more staff?
It can seem really overwhelming the thought of getting clear on these numbers. Where do you even start?!
But the alternative is continuing to run a business in the dark with no clear direction for growth.
Without this data, how can you grow a business that will increase in profitability and provide sustainably for you and your business?
It’s just not possible.
But if the thought of getting clear on the numbers is stressful thats where an experienced bookkeeper can help you as they do this day in and day out.
We would love to chat.