Questions

Our real world business has brought in over 1.25 million over the 3 yrs and we only started with a small $20000 loan. We have a flower shop so we have a bit of everything--services, retail, e-commerce and products. We started with a customized approach and are moving more towards products. Any advice for my situation. Good news is we have customers and we have revenues, but we are working harder and still not building any cushion. We are a small staff of 6 people.

A few options: increase your prices, lower your costs and/or increase your volume. Sounds like you've got a low-margin growing business, but as you can see, it's not what you make, it's what you keep. A staff of six on a $300,000/annual budget doesn't leave much room for profit. You might want to lower your head count. If not, then drop your lowest-margin services altogether. And raise your prices on your mid-margin services to make them high-margin. If you lose the customers, then that frees you up to focus on your high-margin services. Happy to go over any of this in more detail on a call.


Answered 10 years ago

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