What factors are impacting your profitability?
Profitability is the end result of a number of different components in a company working to maximum capacity both individually and collectively. Lack of profitability is not the problem, it is a symptom of the problem. Profitability can be impacted by internal and external factors. Internal factors include ineffective marketing, an inaccurate sales process, inefficient operations, improper staff training and development and the lack of product and service development. External factors can be micro and macro. Micro external factors that can incur include local competition, suppliers, local economy and labor. Macro factors include the economy, government regulation, tariffs, global competition and consumer preferences.
By and large, companies cannot control the external factors of profitability. For that reason, we focus the bulk of our time improving the internal factors but mitigating the external factors. Internally, it is important for the business to assess each area of the company individually first to find areas of improvement. Once each area is internally optimized, the next step is to identify what areas are reliant on each other and how well they work together. It is surprising to many business owners to learn that the issues in one department are actually caused by another department.
For instance, are operations always behind schedule because accounting slow pays vendors and vendors therefore do not provide preferred scheduling of materials? Are the marketing efforts ineffective because the marketing campaigns do not stress the true benefits of the product from the design team? Is new product development hampered by a lack of feedback from the sales team as to what the customer wants and what they wish future versions of the product could offer? Is staff development a function of having the wrong staff or has management not appropriately communicated expectations and initiated a comprehensive training program?
With nearly 20 years of company analysis and investigation, MIBS identifies the issues and works with management and employees to make the necessary improvements. Our process of listen, analyze and implement ensures that progress is made. If your profitability is not where you think it should be, contact MIBS to make the investment in maximizing the profitability and value of your organization.
Contact Us To Identify and Implement Strategies That Increase Profits