I was working with a company that was exceeding revenue targets yet well below in EBITDA. I asked about profitability by product line and was told "It can't be done. Too many variables."
Sorry - it can't be done isn't in my vocabulary.
- We identified easy to determine revenue and expenses by product.
- We created an allocation of shared expenses and overhead.
- We factored in time spent with clients by product line.
Results were astounding.
- The highest revenue product was the least profitable
- Same for the most burdensome client(s)
- Lower revenue products had insane profits
Needless to say, our strategy changed and the company became much more profitable in a very short timeframe.
Perfection was not the goal. A sound business analysis was.
Don't assume it can't be done until you try it!
Results will prove worth it.
Rich Hall Group