Christmas time isn’t about food, but good food certainly follows Christmas tradition. Great chefs follow great recipes. Follow the directions and you can create a masterpiece. Forget to put sugar in the pie and you may regret it.  Business profitability is no different – the recipe matters.

Business owners are like chefs, in order to create the masterpiece they too must follow the recipe. Creating consistent business profitability comes with a good understanding of the key ingredients – at Pointguard we call it the Profit Model.

Three key ingredients highlight the list, Productivity, Realization, and Leverage. Productivity is the primary driver, ensuring you receive maximum use of the capacity of your people, machinery, or real estate assets.  Most businesses leave profit on the table because they fail to understand the difference between being busy and being productive.  Realization maximizes the return on productivity by ensuring the business owner knows what to achieve either through sales mix, bidding, or simply achieving the right amount of throughput.  Leverage is about placing the right people in the right position based on skillset, talent, and pay levels so that you receive the appropriate return on their wage.  Each of the Profit Model ingredients feeds off the other.  Finally, add a dash of entrepreneurial spirit to give it some flavor!  Business owner’s, don’t let 2017 slip by without considering our proven recipe for profitability. Sign up for our free 60 minute educational workshop to evaluate the Profit Model for your business.

*AICPA Code of Professional Conduct, Rule 101; Interpretation 101-3