12 Most Costly Profit Killers in Your Small Business
Running a business is no easy task. It takes time, money and good decision making. This article from Donna Marie Thompson on 12most.com highlights obstacles you want to try and avoid in running your small business. Enjoy!
If your business strategy focuses solely on growing your business by expanding top-line revenues, take a closer look at your profit margins to ensure that your fair share of profits are actually reaching the bottom line. In many cases, you’re so busy selling, delivering, and putting out fires, your costs can silently creep out of control, with damaging effects on your business profits.
Here are 12 costly profit killers that can drain your profits faster than you ever thought possible. Manage them closely to boost your bottom line.
Excess inventory
Whether you’re in retail, publishing, manufacturing, or even consulting and professional services, having excess inventory and idle resources is a drain on your bottom line. Plan ahead for the next two quarters and see what you actually need to keep on hand. Then explore viable ways to redirect resources you don’t need when carrying costs are too high. Business trends might be seasonal or short-term, or else they could be flashing a major change in direction. Be out in front to proactively manage your inventory levels and staff time to boost your profits.
For the other 11 click here – http://12most.com/2013/12/26/12-costly-profit-killers-small-business/
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