On the podcast today we're going to learn how profitability directly impacts the sustainability of a company. This is acutely understood at a time like this in our world and economy. The higher the profits and the better the management of those resources – the more sustainable the firm is. The lower the profits, the less management of those funds and the less sustainable the company is.
In this podcast episode, I am going to share with you five indicators that your design firm’s profit is on target. We will dig into why profitability matters and where to start managing it properly in your firm.
Profit Margins
Debt
Cash Flow
Cash Reserve
Key Thoughts:
Profitability layer is instrumental as we build up and we build order and we build impact with the legacy. Michele (09:25)
By clearly defining the goals of how you spend money, you're going to be in a much better position to assist the company to live within its means. Michele (12:51)
Profitability and the company allows for money to be allocated to the health and the sustainability of the company as a whole. Michele (17:09)
Leveraging in this situation simply means investing in something to gain a profit, which is greater than the investment. So if we're going to put money in we want to get more money out. Michele (21:24)
As your business grows readdress your KPIs, look for new or different measurements to guide your current and future success. Michele (25:04)
Email: Team@ScarletThreadConsulting.com
Facebook: Scarlet Thread Consulting
Instagram: @ScarletThreadATL
The Designers' Inner Circle - Become a Member Today
Fix This Next, Profit First, by Mike Michalowicz
E-Myth Revisited by Michael E. Gerber
All Roads Lead to Profit, Episode 004 with Mike Michalowicz
Backward Financials for the Win, Episode 011 with Tracie Taylor
How to Start Profit First with No Profit in Your Design Business, Episode 092 with Michele Williams