“What we measure, we can improve”. Let’s learn how to improve our profit margin in this podcast.
Series: The Top 3 Mistakes Growing Trade Businesses Make
Cohost: Danny Kerr from BT Academy
Let’s assume that we’re all in business to make a profit. So why do so few of us have such a poor focus on our gross profit margin?
In today’s podcast, Danny runs us through the framework that he uses and teaches at BT Academy, with the hope that we start giving it the attention it deserves.
This is part two of the three-part series.
Here is the link to episode one – Attracting the right talent.
Based out of British Colombia, Canada, BT Academy exists to teach businesses how to create a sustainable business structure, using the principles of a franchise model.
Franchises depend heavily on systems and processes, which serves as the fundamental lynch-pin in a franchises ability to operate out of multiple locations while delivering a consistent product/service.
My co-host in this series, Danny Kerr, has a background in franchising. A few years ago, he decided it would be a good idea to educate trade business owners how they can create similar frameworks in their own businesses.
As a result, BT Academy was born and they now help hundreds of organisations, right across Canada and the United States take their businesses to a level that is systemised, profitable and independent of any one person (in most cases the business owner).
In this series, we’ll be talking about what Danny considers the Top 3 mistakes that trade business owners make, from his experience with dealing with hundreds of organisations. Those areas are:
- Attracting the right talent
- Lack of focus on Gross Profit Margin
- The wrong prioritisation of time
If you’re interested in attracting talent, you’ll likely enjoy these past podcasts also:
- How to find the leaders in your organisation – Peter Cox
- Staffing Power – Al Levi
- Implementing an Org Chart – Al Levi
- Defining Roles in your family business – Al Levi
- Identifying and creating roles in your organisation – Greg Hamlyn
- How to find the right staff members for your business – Greg Hamlyn
- How to retain your staff – Greg Hamlyn
- When is the right time to expand? – Al Levi & Ellen Rohr
Lack of focus on our gross profit margin
In the previous podcast, Danny taught us the fine art of attracting the right talent into our organisations. Stemming on from that episode is this one, where he talks to us about the importance of understanding money, cash flow and profit margin.
There’s a misconception that turnover is the goal that we should all be chasing as business owners, however, it couldn’t be further from the truth. Turnover means NOTHING unless there is profit in the business.
Your business might well be turning $20 million a year, however if your profit margin is only $100,000, that business sucks. Totally.
It’s really important that we understand the difference, which is why I am so thrilled to be bringing you this podcast. Not only has Danny shared his knowledge with us, he’s also left behind a spreadsheet that you take and make your own. It’s absolutely genius.
Not only that, he’s offered to spend some time with you, to help you get it set up correctly in your business.
If you don’t take advantage of that, you’re completely crazy.
Also, do something nice for one of your friends. Copy the link to this page and send it to them.
I hope you enjoy this episode and once again, PLEASE leave us a review at iTunes | Stitcher | Soundcloud, or YouTube.