“5 Strategies to Increase your Franchise’s Bottom Line”
1. Don’t focus all your attention on Revenue
- Revenue is sexy, right?
- Top line revenue versus bottom line profit
- Is there such a thing as too much revenue?!
2. Know your gross margin
- Gross Margin = Sales Revenue – Cost of Goods Sold
- How do we price our product or service?
- Are there certain products or services we should discontinue?
- Can we get better pricing from our suppliers/vendors?
- How do we compare with others in our industry – benchmark
3. Budget & Forecast
- Why do a budget?
- Who’s involved?
- How often?
4. Negotiate everything
- Don’t be complacent
- Get off automatic renewal!
- Hold suppliers/vendors accountable
5. Open your mail and sign your checks
- Internal controls
- Best way to know what’s happening
Dan Steiner – President, Steiner Business Solutions
dsteiner@steinerbusinesssolutions.com
804.314.7526
