Where is profit hiding in your business? Ben McAdam shares his framework for five places to uncover hidden profit opportunities for small to medium-sized business owners.
Attorneys learn how to be great attorneys but nothing about actually running a business. Ben’s approach is a meld of strategic finance and accounting with business coaching. He encourages us to start by looking within our financial reports for more revenue opportunities.
Treat your Profit and Loss report as a dashboard for your business. Know your numbers and anchor to your numbers because the numbers don’t lie. Schedule regular accountability meetings with your accountant, so you know the numbers and where to make adjustments. Look for opportunities to decrease expenses while increasing investment in products, services, or employees showing a good return.
Ben’s 5 point framework consists of reviewing costs, raising prices, increasing order size, recurring revenue, and productivity.
What You Will Learn in this Episode:
- What to pay attention to in your income statement
- How to use financial reports as an accountability system
- Where to look for opportunities to create recurring revenue
- Why it’s ok to scare off some customers when raising your prices
- When it makes sense to bundle your services