Are Profit Killers Lurking at Your Business?
Can you identify the profit killers in your business?
Unfortunately they creep up everywhere.
These Profit Killers are also play the role of Profit Thieves embezzling YOUR time and money everyday.
Killing the chance of building a thriving business.
If cash flow is tight or goals are not being met, can you identify what is the cause?
Chances are these profit killers sit right in front of us and we are too blind to identify them.
In addition, how did those dreaded Profit Killers sneak into the schedule anyway?
It is not always easy to determine the difference between being busy vs productive.
Diagnosing where the profit killers lie within a business certainly can be challenging.
Time is the one thing that no one has a competitive advantage over another.
We all have the same 24 hours a day and 365 days a year to accomplish our goals.
The difference strictly falls on what we do within those 24 hours.
Therefore a few questions to chew on:
- So what is denying goals being achieved?
- Are you maximizing your time and efficiency as well as all resources?
- Could profit killers be in the form of an unproductive employee that we hang on to too long?
- When looking at the great entrepreneurs such as Jeff Bezos and Warren Buffett, what traits do they posses that delivers astronomical success?
- Why is it that uber-successful entrepreneurs maximize their time so well?
One of the 10 Commandments states “Though shall not kill”.
Post a sign in your office, on your computer, on your bathroom mirror that says, “Thou Shall Not Kill My Profits”.
TOP PROFIT KILLERS AT SMALL BUSINESSES
Profit Killers can be disguised in the form of an actual asset on the balance sheet.
In other cases, profit killers come in the form of customers who are simply too high maintenance to service. Those sales from customers that beat us up on price where profitability is sacrificed.
Let’s take a look at potential profit killers roaming our businesses:
- Spending valuable time trying to collect receivables
- Writing off too much bad debt from customers
- Too much inventory causing waste and spoilage
- Inventory theft: Internal or external
- Mismanaged time
- Inefficient system and antiquated processes
- Prices too low
- Hanging on to a bad hire — Unwilling to cut that toxic employee that hurts the business.
- Hanging onto unprofitable customers
- Ignoring technology
- “This is how we have always done it”
- Unnecessary meetings (that go on WAY too long)
- Outdated machinery
- Low morale: Unhappy & unmotivated employees
- Top Heavy: Too many Chiefs burning the bottom line
- Outdated facility or poor layout
- Bad location
- Poor marketing execution
- Overlooking price increases from vendors
- Production mistakes causing repairs and rework as well as unhappy customers
- Poor communication — internally and also externally
- Employee turnover
- Poor employee attendance
- Under bidding quotes
- Over paying suppliers and vendors
- Poor negotiating skills
- Trying to service too much bank debt as well as choking on interest
- Taking on projects and customers that fall outside of your wheelhouse
In conclusion, let’s commit to banishing these dreaded profit killers so you can thrive and continue delivering amazing solutions to your customers.