Which Product Is Making You Money?
Make sure you are selling the right product mix to maximize your revenue.
Business nowadays are anything but simple. The fast-paced evolution of technology has made it easier for entrepreneurs to dive into several lines of business.
I recently met a young man who owns several businesses, including a restaurant, a retail store, several investment real estate properties, and a consulting firm. Each one of these businesses was housed under the same corporate entity. I asked him how his business was doing, he confided that it wasn’t doing too well - he had been suffering some losses over the past few months. When I asked which part of the business was bleeding the company, he couldn’t answer. Was it the restaurant? Or the consulting firm? Maybe he was too highly leveraged on his real estate portfolio? Who knows?!
Having a good managerial accountant on board can help you answers such questions. If you have your fingers in several pies, it becomes increasingly important to understand which of those pies are bearing fruit...and take action of those that are not. As managerial accountants, we specialize in helping sort through the myriad of transactions and segregate them into the separate buckets that comprise your business empire.
Once a month, you get a clean, easy-to-read report that clearly shows which of your segments are winners, and which are losers.
For the winners, we will discuss how to make them even more profitable.
For the losers, we can explore the reasons why they are not performing up to par, and see if we can make changes that will help convert them. (hint: incorrect pricing is usually a major reason...once everything is properly segregated, you will see exactly what is being spent on producing that product, and then you can adjust your pricing to earn a truly decent margin).
By the way...The same goes for non-profits. If you have multiple grants, we employ the same processes to manage all of those monies and provide accurate reporting.
If you are selling multiple products and services, don’t guess at which ones are making you money and which ones are bleeding you dry. Contact us today and we can give you the answers you need to grow a thriving business enterprise.