The pandemic has been hard on many businesses’ bottom lines. But some lucky companies have grown so much that they had to quickly expand operations. The problem? Colossal growth without financial health can kill your business fast.
Growth is only half the equation in running a business. The other half, profit, must be happening at all times in order for a business to succeed. And growth can be very expensive, especially when it’s unplanned.
The easiest way to increase profit is to cut expenses, not sell more. Take a look at your yearly expenses and try to cut them by 10 percent. Cancel everything you don’t need to run efficiently and keep your customers happy. Then negotiate every remaining expense, except payroll.
Find more tips on how to weather the ups and downs of running a business with our new Instaread on Profit First.