In terms of accounts and numbers, the only real important fact in any company is called MARGIN.💰
If there is margin, the company is open, if there is no margin, the company closes … it’s simple mathematics.👨🎓
To increase the company margin there are 2 ways …
1) Increasing sales …💹
2) Lowering Costs…✂️
Although point 1 is very important, in this post we focus only on point 2.
How many of us have thought at least once in our professional lives … “Man, I have to lower costs”
To become more aware of the problem, normally I would propose a slightly different question … 😉
DO YOU KNOW YOUR COSTS?🤔
Considering that many carpentries answer … NO, the next question is :
BUT HOW CAN YOU THINK OF LOWERING YOUR COSTS IF YOU DO NOT KNOW WHAT THEY ARE? 😭😭😭
As long as we do not identify the cost and profit centres of our carpentry company, it becomes unlikely to know where it is really possible to cut our costs without doing damage to the company.
If you are a good entrepreneur 🧐, you understand the importance of having the numbers of your company in your hands … well, there are 2 tools created for this, they could be at your disposal soon:
– if you produce windows – Archimede
– if you produce furniture – SmartCabinet