Profit Leak 8 – Do You Know What Mistakes Are Costing Your Business?

Measuring Business Mistakes

The reality is that there are mistakes happening in your business every day. Human beings make mistakes, and those mistakes cost you money. Do you know how much money, and which mistakes are the most costly?

The challenge with financial statements is they do not properly measure these mistakes. They only help you measure profit and loss, cash flow, and balance sheets. They barely scratch the surface on measuring the costs of all the mistakes made in your business.

Maximize Your Business Performance

To truly maximize your business performance, you must identify the 5 to 7 key processes that drive your business. Then you should pay particular attention to those that can make you different in the marketplace.

How closely are you measuring these processes? Have you assigned a single point of accountability to each process? What leading indicators do you use to identify that each process is functioning at optimal levels? How often do you look at each indicator?

Key Questions To Improve Your Company Success

There is a saying: “What gets measured… gets done.” In my experience, there is a lot of missing clarity when it comes to measuring business performance. By answering the following questions you can improve customer loyalty, sales growth, and profitability.

  1. Do you have targets for efficiency and effectiveness for each of your processes?
  2. Do the team members responsible for the outcomes know what those targets are?
  3. Are you holding them accountable?

Improve Business Performance

If you are interested in addressing your “profit leaks,” let’s schedule a time to further discuss your business and how we might work together to patch up your leaky bucket. For a FREE consultation, please contact us today or give us a call at 305.722.7213.

Profit Leak #1: Are You Losing Productivity on B and C Players?

Profit Leak #2: Is Poor Leadership Holding Your Company Back?

Profit Leak #3: Are You Too Focused on Tactics Rather Than Strategy?

Profit Leak #4: Are Vacant Positions Affecting Business Performance?

Profit Leak #5: Do You Have Retention Issues?

Profit Leak #6: Is Your Business Strategy Causing Lost Opportunities?

Profit Leak #7: Are Your Customer Attrition Rates Too High?

Profit Leak #8: Do You Know What Mistakes Are Costing Your Business?