Based on our experience supporting small business owners, in less than an hour, we are confident we can find a 10% improvement to Your bottom line.
We ask questions. We listen to Your answers on how and why Your business is not performing. We confirm Your answers with Your financials, and look at the key drivers of Profit:
We then make recommendations on how to improve the effectiveness of one or more of these drivers.
It is critical that as a small business owner You are aware of and managing Your costs - both fixed and variable.
It is also critical that Your cost structure is set up so as to provide flexibility and ability to adapt to whatever the future entails.
Recommendations would be:
The term fixed costs applies to any cost that is necessary on a recurring basis for the operation of the business.
Examples of fixed costs within the business might include:
Typically, the largest costs for a small business are Rent, Payroll, and Materials / Supplies. At this particular time, these need to be constantly reviewed and where possible reduced.
Examples of potential actions to reduce fixed costs:
3. Review opportunities to reduce staffing, and as a result payroll costs, by automating key business processes
4. Work with suppliers to reduce your supplier costs
Variable expenses are those that change depending on how much you use the service. Many of these are necessary for your business to stay in operation, like utilities.
You will also find expenses that are not necessary for the function of your business, but would be nice to have, like education, or extras that can increase profitability. Those are called ‘discretionary expenses’, which you can roll into your variable expenses budget as well.
Some examples of variable expenses are:
During these times, you will need to lower your business variable expenses, beginning with discretionary spending.
Now, it is important to note that not all costs are equal. The focus should be on securing your business’ near-term viability and positioning your business for the medium-term.
Putting it another way, be careful when reviewing and potentially cutting costs. Do not remove all of your sales and marketing investment. Ultimately, your business needs to grow out of this situation by ensuring it has a sales and marketing strategy that increases demand for your products or services.
Would it be worth a 1 hour chat to understand how to add at least 10% to your bottom line?
Contact us
Transcend is a team of experienced business coaches supporting You and Your business' growth. For more information refer to
www.transcendhcs.com.au
Phone: (03) 8765 2472
Address: Ground Floor, 435 Nepean Highway, Frankston VIC 3199
Email: [email protected]u
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