Washington, DC, January 03, 2014 --(PR.com
)-- In her 12Most.com blog, Donna Marie Thompson, CEO of Expert Profit Solutions explained: “These costly profit killers can drain your profits faster than you ever thought possible. Manage them closely to boost your bottom line. The first expense is excess space. When you look around and see unused space that month-after-month you’re paying a high price per square foot, this can be a real profit drain over the long term if you are not predicting business growth. How do your clients directly benefit from the space?”
Dr. Thompson continued: "The second cost area for analysis is underutilized equipment. When you carry underutilized equipment in your business, you’re paying for it 24/7 even as it sits idle. Perhaps a big one-time order came in but did not lead to a steady stream of orders as expected. Maybe it is a seasonal lull. Perhaps that line of business has slacked off."
The third area highlighted is excess work-in-process. Dr. Thompson elaborated: “Every business has a flow of work that moves from beginning to completion before earning full payment, adding costs all along the way. Work that is 90% complete has accumulated a large quantity of costs yet cannot be converted to revenue until it is complete and passes quality inspection. Work-in-process applies equally to manufacturing as well as to providers of professional services. Take a look at your projects that are more than 90% complete and expedite getting them out the door.”
“Growing businesses have excess costs hiding in plain sight. If you‘re experiencing even one of these 12 profit killers, it is already negatively affecting your bottom line. Many businesses are facing more than one. Get the data you need to get to the root of the problem — many issues have several contributing factors and interconnections. Once a profit leak is successfully plugged through strategic cost-cutting, you’ll see dramatic changes in your bottom line. And better yet, the savings become an annuity that builds your bottom line well into the future. So where are you going to look first for profit killers in your business?” queried Dr. Thompson.
Check out the blog and leave a comment at http://12most.com/2013/12/26/12-costly-profit-killers-small-business/
Donna Marie Thompson, PhD is an acclaimed platform and cruise ship speaker, a two-time best-selling author, and a former Director at PricewaterhouseCoopers Consulting. She is a small business profitability specialist who created The Profit PyramidTM and runs 4-week mastermind training programs for successful small business owners and entrepreneurs. Apply now to be considered if you run a profitable small business under $5 million in revenues.
Check out for Donna Marie Thompson's new book endorsed by Brian Tracy: Peak Profit Potential on amazon at: http://www.amazon.com/Peak-Profit-Potential-Program-Business/dp/1936621053/ref=sr_1_3?s=books&ie=UTF8&qid=1387047705&sr=1-3&keywords=donna+marie+thompson
And get your own copy of the free Special Report "3 Profit Pitfalls and How to Avoid Them" at http://www.ExpertProfitSolutions.com