SILVER CLIFF, Colo., Aug. 21, 2023 /PRNewswire/ — “Let’s get something straight,” Sue Canyon insists. “There are no quick fixes when it comes to running a small business, but there are specific steps that you can take to make your small business successful. A big one is cost reduction.”
To reduce costs, a business owner first must know their costs, which may sound painfully obvious, but in Sue’s experience, most business owners don’t know their true costs. “An owner will tell me, ‘I know what my costs are down to the last cent!’ I have taken that bet every time and have rarely lost my nickel,” Sue grins.
For example, most small business owners don’t know how to determine their Burden Rate, a key cost factor for any business. The Burden Rate includes things like indirect expenses and productive time. In the Profit Power Series, Sue breaks the calculation down into reasonable steps using plain language and walks business owners through the process of determining their true costs.
“There are plenty of signs that business owners don’t know their true costs,” Sue observes, for example:
- Not knowing for sure what your financial statements really mean.
- Not knowing if your financial statements are even correct.
- Struggling to pay vendors.
- Wondering if your prices are too low … or too high.
- Fighting to increase small business profits and sales.
- Thinking that someone is stealing from you.
- Struggling to keep productivity and quality up.
- Suspecting that your workforce isn’t efficient but not really knowing.
In the Profit Power Series, after showing business owners how to determine their actual costs, Sue then shows how to take incremental steps to reduce the most wasteful costs first.
“One of the secrets to succeeding in business is employing a cost model,” Sue says. “The cost model is a tool that can turn any business into a force to be reckoned with. It is the very definition of control, and the sooner an entrepreneur employs a cost model for their business, the sooner that business will identify waste they were unaware of, cut costs and start generating profits.”
“I’ve done my best to make it easy for anyone to deploy my cost-reduction tools – and at a fraction of the cost of hiring a consultant. The Profit Power Series walks you through the process, one step at a time, focusing on the most fundamental issues first. You’ll begin to see improvements fairly soon, regardless of the health of your business, but for businesses that are just getting by, cost reduction is crucial, especially in the current economy.”
SOURCE Business is Booming!