Are you making money?
It's a very simple question. Are you making money? Forget accounting standards and the rubbish reasons your results look crap… Be frank. Are you making sustainable earnings in your business?
If you’re wondering how to know, here are a couple of tips:
1. Cash doesn't lie - if you are cashflow positive, you are making money.
2. Majority of your costs are variable - therefore are aligned with revenue.
3. Your pricing covers your fixed and variable costs.
Now, regardless if you are making money or not - the next question is could you make more? In most cases the answer is yes. So how do you do this?
Increase revenue
increase price
more effective salesforce
more effective marketing
Reduce costs
look at ROI on all costs
review fixed costs to make variable
review operating model
Drive improved working capital
credit terms reduce to increased cashflow
use pcards to pay suppliers
improve process to reduce time to receive cashflow
There are many levers to increase profitability of your business. That's what we do at Whiteark.
See some example case studies here.
Need support in your organisation? Reach out.
Whiteark is not your average consulting firm, we have first-hand experience in delivering transformation programs for private equity and other organisations with a focus on people just as much as financial outcomes.
We understand that execution is the hardest part, and so we roll our sleeves up and work with you to ensure we can deliver the required outcomes for the business. Our co-founders have a combined experience of over 50 years’ working as Executives in organisations delivering outcomes for shareholders. Reach out for a no obligation conversation on how we can help you. Contact us on whiteark@whiteark.com.au
Article by Jo Hands, Co-Founder Whiteark
