Making a business extraordinary
What makes a business extraordinary, well it is simply the difference between looking outside that elusive box, stretching your thinking processes and flying with the opportunities that present themselves, going that extra mile, doing that little bit extra.
Sometimes you need to move aside from the day to day and get out from under a stifling viewpoint and find an objective viewpoint. An outsider can come into your business and do a full review of what you do and (sometimes more importantly) why you do it.
How often do you get asked why you priced something a certain way, did you then back-cost it to check the pricing. Often the answer is “we’ve always done it like that”. Well we all know it pays to check, check, and double check. The multipliers change with the movement of a business as compliance costs and the cost of production, staff and so on change over time.
Just because something sells well, it doesn’t mean you are making money.
Often that line may be a loss leader, intentionally or otherwise. When we explain this to clients they are often shocked and can't see the reasoning as to why. It’s a simple equation that could save a business in the long run.
Knowing your margins intimately is an excellent first step in really getting to grips with the reasons a business may be struggling and turning those fortunes around. When you know your margins and then know your sales mix, your business can start to flourish.