Greater understanding.

Tuesday, 14 July 2015 11:20

Overlooked Bottom-Line Hack

Written by 
Rate this item
(0 votes)

 

The goal of every business is to put more money on the bottom line. Afterall, it’s not what you make - it is what you keep.

There are only two ways to put more money on that bottom line - sell more or save more.

Selling more is one way to increase your bottom line but it also drives up expenses and takes resources. The obvious solution is to save where it matters and see the same increase in your bottom line, with less work. It’s important to distinguish between the bottom line and the top line.

Top Line (Revenue) - Expenses = Bottom Line (Net Profit)

For example:

Say your profit margin is 3% before taxes. This means that when you sell $1,000 worth of product, you get $30 in your pocket. Thus, in order to earn $1,000 (net profit), you have to sell $33,000 ($1000 / 3%) (I know, your head is spinning.)

Building Performance Team can help your company save $1,000 in net profit, which would go straight to the bottom line. Saving $1,000 may well be a lot easier than selling $33,000 in product, so let us help you save time and save money. Contact us for details.

 

Read 844 times Last modified on Tuesday, 14 July 2015 16:51

Leave a comment

Comments are intended to aid in discussion. This includes ideas, concepts, discrepancies, thought out disagreements, or any solid form of communication dealing with the blog content itself, or directly relating to something pertinent to the discussion. Please refrain from incriminating or negative comments directed towards a particular individual.