Hey guys! Today is a new episode of Female Empowered and I will talk about how to find and fix profit leaks in your business.
What Do We Mean By Profit Leaks
Our business is like a bucket. The money that comes into our bucket is revenue, sales, and all of those things. The money going out of the bucket are our expenses.
However, sometimes, there will be leaks in our bucket and sometimes we do not realize it or we cannot stop it. So, to help with the leaks, I will be sharing with you where to find the leaks and how you can fix them because this can have a real impact on the bottom line of your business at the end of the year.
It’s a snowball effect and you have to understand that when there’s a leak, it affects the profitability of your business, how you can pay yourself and your staff, and more!
- What are profit leaks
- Examples of obvious leaks in our business
- Another way to find leaks: Is there unutilized space in your brick and mortar location
- The profit leaks that are more difficult to find
- People Leaks
- Are you the right leader for your business?
- B, C, D, and F players on your team
- F players are easy to get rid off
- C players are more difficult to let go but they could be causing you leakage in your business
- Do you have the right people advising you on your finances
- Right people in the right seats
- Strategy Leaks
- How my team and I analyze our strategies
- Revenue is a vanity metric, cash is king
- The importance of mission and vision in relation to profit leaks
- Tactics vs strategy
- Chasing revenue vs looking at profitability and sustainability
- Execution or Implementation Leaks
- What could be failing in the systems and processes
- Are you effectively communicating your goals to your team
- Are you emphasizing the wrong priorities to your team
- Profit is a means to end goals
- An example to help you understand more about profit leaks
- The importance of meetings where people are held accountable over 2-3 initiatives
I hope that you enjoyed this episode and you learned a lot from it. I invite you to check out my Work With Me page on my website. We are now open for enrollment for our Inner Circle program and Fitbiz Foundations program!
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Interested in being a guest on a future Female Friday episode? Email me at [email protected]!