The term “Profit Maximization” is technically defined as that point in production in which your marginal revenue equals marginal costs. So how does that theory apply to your business?
- Have you ever noticed that although you have added products or services for your customers and are selling more, your financial statements do not show that you are making more money on your bottom line?
- Have you expanded your service hours, only to find that it is costing you more money than you can bring in?
- Have your sales increased, but your overhead expenses have increased even more?
If you answered yes to any of these questions, then our profit maximization services could be of benefit to you.
Adding capacity could mean adding new products, adding office space, storage space, working space, additional employees to help you, expanding your hours, or even adding equipment. However, adding “capacity” also means adding costs. Before taking that next step, you need to determine how much more revenue you can generate by adding a certain level of “capacity” to make sure it will be worth your while.
As you can see, adding revenue does not always mean adding profits to your bottom line. By taking a proactive step beyond the basic bookkeeping, we will do an in-depth review of every dollar you are spending, whether or not each expense is important to your growth, and how you can best utilize your hard earned money to your advantage – tax advantage and otherwise.
Sound confusing and complicated? It can be, but as your CPA partner, we can help! We will help you determine the best next step for your business, dependent upon your goals.
Let Spencer Business Solutions profit maximization service help you get the most out of your business.