Time for a business profitability review
Posted on 29th November 2022 at 15:11
As we head into the winter many are dubbing the ‘winter of discontent’ with so many workers striking, rising inflation, high energy costs and instability in the economic marketplace, we are asking businesses if it is time to do a business profitability review.
In a recent Federation of Small Business (FSB) survey a quarter of small businesses were planning to close, downsize or radically change their business model over the next year. 4 in 10 small businesses were also considering raising their prices and a third were predicting that they would cancel or scale down their investment plans. If your business is considering any of these options, speak to us first and talk through your plans as we can review the numbers together to help you to plan the best course of action.
What is a business profitability review?
A business profitability review is about taking time out to take stock of where your business is and examining your profitability.
At times of uncertainty like what we are in it is important to have a good handle on what is happening in your business and a good grasp of your numbers. Often, we find that business owners have a figure in mind of what their profit margin is but when the numbers are reviewed it turns out much lower. If this is the case, it makes it much harder to weather the storm in difficult times or put in place measures to counteract it before it gets worse.
In the current economic climate, with supplies and utility costs rising, having a handle on this is harder than before, so reviewing how profitable the business is will pay dividends. Sitting down to go through your numbers is time well spent and an investment in your business (fees charged for this service are £250+VAT). We can also go a step further and assist in formulating a specific plan of action to help you solve or address any issues.
If you think you could benefit from a business profitability review, get in touch and book an appointment.
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