Profitability Check

Be honest!

When was the last time you sat down with your team and your controller to check all your work-processes to find gaps which slow you down although your business is running?

The profitability check shall be on your annual to do list.  I wouldn´t advise to do it more often than every 12 months because your team has to adjust to new ways and processes and not all alterations will make sense for yor business, of course.  After you implement a new process the team has to settle into the daily activity to make it a new routine and it helps to calm down the tension it provokes.

LOGISTICS:

Car and truck insurance:  did you check new providers on the market?  Do you run so many cars or trucks that a contract re-negotiation with your insurance company will make sense to cut costs?

Gas:  some gas stations offer frequent bonuses – are all your drivers using them daily?

Tires:  how about the price for storage of the winter- and summer tires?  Is there a new way or a new company with reducted rates than the one you consult since years?  Would it make sense to offer this service also to your employees cars (tires) to get a better rate at the company “x”?

OVERHEAD:

Rent:  are you renting the building your company works in or do you own it?  Would it make sense to buy something and rather move?  Is working in a bigger office maybe pushing a more profitable acting and deciding to your employees?

Staff:  if your office building burns down today and you meet all your employees on the parking lot outside while you think about rebuilding the companies office.  Question yourself:  whom would you take back in with you?  ALL of them?

A recurrent profitability check is crucial for every company.                                                                             Put it on your to do list for 2013!

BE A DECISION MAKER.  BECOME OUTSTANDING.

rita jaskolla – Leadership Architect –