Boost Growth & Profits in 2019

CEOs and presidents of small businesses must remain focused in 2019. There is a tremendous opportunity for growth-oriented business owners to maximize profits in 2019. Below are 6 critical profit drivers for the coming year.

1. Strategic and Tactical Focus

CEOs and presidents develop and communicate their company’s strategy, and focus on execution. It’s critical that every employee’s function in your company lines up with your company’s strategic plan. Without the focus to execute that strategic plan, profits will suffer greatly. Communicate openly and focus your employees on the strategy, goals and tactics of the company to maximize growth and profits.

Create a 2019 Business Plan and Monthly Forecast to optimize your time, money and resources toward achieving your business and financial goals.

2. Sales Growth

Growth is a must for every company to increase profits. Growth requires sales management, goals, planning and the creation of a sales and marketing machine. Target your top 100 prospects to optimize new business development. Also focus on your top customers to expand, upsell and cross-sell to maximize profits.

3. Gross and Net Profit Margins

As a CEO focusing on profits, your Gross Profit Margin (GPM) (Sales less Cost of Goods Sold ( COGS)) is the primary financial metric to measure on a consistent basis. Make sure your financials are set up to track Revenue, COGS and GPM so you can determine what products and services generate the most money, as wells as, which products and services are subpar and need some changes, or to be discontinued. Target between 50 – 60% GPM to maximize Net Profits, higher GPM for software companies.

4. Cost of Goods Sold (COGS)

COGS are the direct costs to provide your products and services, and helps you calculate how profitable your products and services are (before overhead expenses). Your Cost of Goods – materials, direct labor, outsourced contractors, customer service and other costs related to producing your products and services are critical to your Gross Profit Margin (GPM).

5. Motivate and Manage Your Team

The energy in your workplace reflects the level of enthusiasm, urgency and intensity of focus as expressed by the people working in your company. You need people engaged. You need your staff to care. And you as the leader need to be responsible for energy and urgency in order to maximize your profit potential. This can be tracked by developing reporting and metrics and updating these reports monthly and real-time in some cases to hold your employees accountable and gauge your progress.

6. Company Innovation

Are you constantly looking for ways to process orders quicker, create customer reports faster, save money by honing an internal procedure, and develop new products and services?

Company innovation is a global mindset in your company that is consistently improving how you do business. The impact of having your employees constantly innovating is a huge driver of profitability for any company. The key is to balance focus and execution versus innovation.

Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. at (949) 629-2520 or by email at MHartsell@CEOAdvisor.com for a no cost initial consultation.

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