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Quick FacePalm Tips: Let's talk about profit (sanity).

In this post I spoke about sales (vanity). Profit puts more money in your pocket!

There are two types of profit on a Profit & Loss statement: Gross profit and net profit.

Gross profit = turnover minus costs that relate directly to a sale (costs that wouldn't exist if you didn't make any sales).
Net profit = gross profit minus overheads (costs to open the business and turn the lights on, whether you made any sales or not).

How do you increase profit?
1. Increase sales.
2. Cut costs.

How do you do those things?
1. Sell more.
2. Pay less.

How do you do those things?
1. Charge based on the VALUE and QUALITY you provide. Not the TIME it takes you do the job.
2. Be more efficient with your systems, processes and controls.
3. Choose higher quality products and services (buy cheap, pay twice).
4. Keep your staff happy and choose the right staff for your business (high staff turnover is HORRIBLY expensive, in terms of staff costs, as well as client and staff happiness).
5. Strip out the dead weight (costs you don't need to get the job done. It's amazing what dead weight's in most businesses).

Profit happens as a RESULT of building a better business.

What are you doing to build a better business?

To find out how FacePalm FD can help improve your profit, book a discovery call now.