When it comes to improving profitability, a lot can get in the way. According to Jonathan Byrnes, author of Islands of Profit in a Sea of Red Ink and frequent contributor to MDM, a company’s approach to accounting, its sales compensation structure, a lack of focus on the core and a lack of process for new business ideas can all hinder forward movement.
Byrnes will be speaking in the Sept. 19 MDM Webcast, Secure and Grow Your Islands of Profit.
But as he outlined in the MDM blog post Top 10 Reasons for Not Managing Profitability, profitability is “life or death” for a small business. In a slow-growth economy, the companies that are coming out ahead are those that are focusing on their profitable core.
Byrnes says distributors need four building blocks to sustainably improve profitability: the right information, the right priorities, the right processes and the right compensation, especially for sales.
But where can distributors begin? Every company wants to improve profitability, but it can be an overwhelming task. In an upcoming webcast, Byrnes will talk about No. 2 in that list: the right priorities. He’ll walk distributors through how they can grow their focus on the 20 percent to 30 percent of their businesses that actually provide the bulk of their profits. With that focus, distributors can then strengthen and build those Islands of Profit.
Register for the free Sept. 19 MDM Webcast, Secure and Grow Your Islands of Profit, here. Can’t make it? Register anyway, and we’ll send you a link to access it on-demand after the event. A DVD will also be available post-event.
