KEY FACTORS TO MAXIMISING PROFITS3

• Do not fall victim to the vanity of turnover

• Assess the impact of accepting work on your bottom line

• Analyse the variable factors such as payment penalties for late delivery and the cost of producing goods

• Smaller pieces of work will require higher margins

• There is little value to be gained from taking work for the sake of it

• Adaptability is crucial, things do not always go as planned

TURNOVER

COST BASE• The objective is to maximise profitability, so get rid of

unnecessary costs

• There is no room for “nice-to-have” items

• Question whether certain indulgences, such as expensive décor, are really necessary

• Try to find the best deal for your service requirements. We have access to a world of information allowing us to compare everything from telephone rates to energy bills

• Incentivise your Finance Directors to cut costs

PRODUCTIVITY• Workforce usually constitutes the single largest cost base

for a business

• Attribute a value to the productivity of every individual working within a business

• Be aware of constant change and prepare the business to be dextrous enough to overcome the challenges associated with a changing business landscape

• Move unproductive people on

CONCLUSION• Uncertain times call for a return to the basics of business

• Accept that things can always go wrong, no matter how well you are prepared but remain adaptable

• There are no guarantees in life, but sticking to the core principles will ensure success