I can’t see my way out of our lack of profitability. Help!

Dear Aunty B,

We run a small services company and decided to focus this year on making a profit, as we never have before. But despite increasing revenue through gaining larger contracts, we will only hit breakeven again.

The problem was that we had to hire more people in order to service our clients properly and fulfill the contracts. I can’t see my way out of our lack of profitability because people are our main cost and the more work we do the more people we need.

How do I actually make some money out of this business?
Vic

Dear Vic,

That problem is as common as dirt. And too few people ever focus on it, mainly because we are all running around like headless chooks trying to keep clients happy. You need to make someone honcho head kicker.

Their role is to look at the business and turn whatever you can into a product. What services can you template? What can you automate? Honcho head kicker is also in charge of scrutinising contracts so that pesky sales people don’t sell all the stuff that costs you valuable time but makes them the biggest commissions. That twin focus will get you out of your current situation.

Be smart,
Your Aunty B

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