Month: July 2013

Increase Profitability – Labor Turnover

It is obvious that lower turnover keeps training costs low.  But turnover is also reflective of other issues in an organization.  Is the work environment a place where employees want to get away from?  Is the pay scale competitive?  Is your hiring and screening process weeding out those who can’t cut it in your work… Read more »

Increase Profitability – Labor Efficiency

All firms have employees whose efficiency can directly impact the bottom line.  One only needs to watch a construction project with workers standing around to understand efficiency.  (In defense of my contractor friends, those guys will often be needed for another phase and having them ready to work is more efficient then stopping the project… Read more »

What is EBITDA – and Why Should I Care

The term EBITDA stands for Earnings before Interest, Taxes, Depreciation and Amortization.  The measurement is not an accepted metric in audited financial statements but is widely used as a substitute measurement for a company’s cash flow. By adding back interest, EBITDA removes financing expense from a company’s profit and loss statement.  However, leasing can still… Read more »

Increase Profitability – Having the Right People

Having the right people implies having the skills on your team that are needed to meet your customer’s needs and also to grow your business.  These skills include both the tangible knowledge skills and the attitudes needed to take your business to the next level. As someone who supports multiple businesses on an as-needed basis,… Read more »

Increase Profitability – Material Costs

For many product companies material costs are their largest expense. While it seems obvious that one way to increase profitability is to minimize material costs, there are facets of the equation that warrant more exploration. Material costs include the direct cost of materials used in the production of your products, but also include the cost… Read more »