Manage episode 298005911 series 2951310
Increasing profits is first about increasing efficiency
Your business has inputs… resources you need to run your business.
Time, software, services, anything you pay money for.
Your business has outputs. Sales in the case of profits.
Efficiency is the ratio of inputs to outputs. You get more efficient by improving that ratio.
Systems thinking can help you increase profits in a few ways -
Reduce the cost of the inputs to your business so you get to keep more of the money you earn.
Allowing you to create more with the resources you have, giving you more to generate revenue from.