Profit Analysis in Your Business!

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Make 2013 a PROFIT focus year!

Are you focused on PROFIT this year or REVENUE? You could say you should focus on both… I am all about focusing on PROFIT.

Many business owners gear up for the year and look at how to increase and drive revenues to new heights, when they should be truly aiming at increasing profits.

Have you done a profit analysis on your business recently?

In very simplistic terms you take each product and service that you deliver and you examine them individually:

1. How many of each did you sell last year?

2. What income did you generate from each?

3. What were your direct costs related to delivering each of the products or services (Cost of Goods)?

Now, examine each and determine which ones are making you great money, which ones are generating some money and which ones are sucking you dry.

Yes, now you have to decide if you should keep the products or services that are not making you the money you want. Imagine putting all the money and time that you are dedicating to those services and products that are not making you money, and focusing it on the ones that do!

Do you think you would be more profitable? Absolutely!

Adding new products and services to companies is great if the existing products and services you have are making you a ton of money.

Be careful to keep adding… it only dilutes your focus and often can cost you dearly.

Author: Colin Sprake is the CEO of Make Your Mark, a Canadian company of live seminars, online entrepreneur academy and live accountability groups that have helped 10,000’s of Entrepreneurs achieve rapid results in small business growth and development. Colin is a best-selling author of ‘Entrepreneur Success Recipe’ and trains for BMO, Sun Life Financial, Scotia Bank, T.D. Bank and lives by the tagline Business With Soul – putting heart back into business!