You’ve got a big decision on your desk. Maybe it’s a new software subscription that promises to save your team hours every week. Or a piece of equipment that could double your production capacity. Or a marketing campaign that might finally break open a new customer segment. It sounds exciting. But before you commit, here’s…
Cutting costs sounds great—until it starts cutting into your team’s efficiency, your customers’ experience, or your own sanity. If you’ve ever tried to “trim the fat” and ended up bleeding time or quality, you’re not alone. The truth is: Reducing overhead doesn’t have to hurt operations. In fact, if done right, it can actually improve…
Ever feel like your costs keep showing up without warning? You’re not alone. For small business owners, understanding the difference between fixed and variable costs isn’t just Accounting 101 — it’s essential to making smarter decisions. From pricing and profit forecasting to break-even analysis, this one concept shapes nearly everything. Let’s break it down simply…
Running a small business means every dollar counts — and knowing exactly where those dollars go can be a game-changer. That’s where Activity-Based Costing (ABC) comes in. Don’t let the name scare you off. It’s not just for big corporations with accounting departments. ABC is actually a smart, practical way for small businesses to understand…
Not all sales are good sales.Just because something is selling doesn’t mean it’s serving your business. One of the trickiest calls a founder has to make is whether to keep offering a product or service that just doesn’t pull its financial weight. If your margins are razor-thin, it may be time to step back and…
You may have bestsellers flying off the shelves — but are they actually making you money? Many business owners focus on sales volume or revenue, but overlook the real star of the show: product-level profitability. If you’re not analyzing profit per product, you might be unknowingly scaling loss-makers. Let’s fix that. What Is Product Profitability?…
Pricing services isn’t as simple as slapping a number on your offer and hoping it sticks. Underprice it — and you’re burning out for peanuts. Overprice it — and you risk scaring clients away. The goal? Strategic pricing that maximizes profit without compromising value. Why Pricing Services Is Tricky Unlike products, services are intangible, often…
Service-based businesses live and die by how well they manage time, people, and overhead. But one of the trickiest parts? Figuring out where your costs actually belong. If you’re not allocating costs properly, you may be overpricing some services, underpricing others, and misreading your profitability altogether. What Is Cost Allocation? Cost allocation is the process…
You’re landing new clients, sales are up, and on the surface — business seems great.But the bank balance says otherwise. If your profits aren’t where they should be, the problem might not be your top line. It could be hidden costs silently draining your bottom line. What Are “Hidden Costs”? Hidden costs are expenses that…
How do you know if your business is doing “well”… or just getting by? It’s one thing to hit your internal goals — but quite another to know how you stack up against others in your industry. That’s where benchmarking comes in. What Is Benchmarking? Benchmarking is the practice of comparing your business’s performance metrics…