You can do all the cost cutting you want, but if your gross margins are low, it will be difficult to make a profit. If they are too low, you just can’t make it up on volume.
What is your profit percentage after the actual direct costs of making and delivering what you do?
Do different products and services have different gross margins?
I can relate to this message! I used to run my company and try to save people money in order to earn their business. I was always struggling and only had a little to make things better. When problems happened I would panic and struggle through each one emotionally and in the end I was financially spent. After looking at my business through good coaching from Larry’s trainings and Jessie Waltz from Bizwiz I realized my pricing across the board needed to increase. When we made theses changes in conjunction with about 20 other changes, the whole feel of the business transformed and it also took the edge off when a problem would arise! More working Capitol better tools new equipment were now measurable investments within the budget.