Financials in a business are one of the if not THE most important indicator of a businesses success and standing. Costs, profits, margin, etc. These things can make or break a business and the financials are what the shareholders measure a company’s success by. It is crucial to have a strong grasp and knowledge on your company’s balance sheet in order to identify key areas of growth, loss, and opportunity.
Let’s take a deeper look at a balance sheet for example here is the link to Tesla’s Q3 2020 balance sheet lets analyze.
Tesla is known for having poor financials and being a “broke” company despite its strong share price in the stock market.
Total gross profit and operating expenses ideally will have an inverse relationship. Cutting down on expenses while increase overall gross profits. How can we cut costs? How can Tesla cut costs? Materials and part supplier quotes? These are the questions each business should be asking themselves.
As Tesla produced more cars their operating expenses increased and so did their gross profits. Cash on hand also increased for Tesla. The key takeaway from this article is to reduce your operating expense whilst maintaining a strong gross profit margin. Tesla has a high cost of production which is what is sinking the company overall.
Strengths, weaknesses, opportunities, and threats comprise the acronym SWOT analysis. This is a marketing and strategy tool used by millions of businesses on a daily basis to improve their competitive advantage over other companies and improve bottom line goals.
Let’s set up a consultation where we dive into your company’s SWOT analysis. This will identify the components within your micro and macro environment to improve your bottom line overall.
Michael helps businesses with Marketing, Advertising, Strategy, and Finance to grow their bottom line and improve ROI. Call or text 616-402-4587 to schedule a free consultation today!
It is very important to establish principles and foundations for marketing and business strategy when first starting out in your business. Foundation and strategy build great companies who are prepared to seek their target market and establish rapport with a specific niche. Specific metrics can be used to measure the progress of your marketing foundations which can turn into future conversions.
#1 – Target Market
One’s target market is the ideal personnel to channel your products and services towards to obtain sales and revenue. In term’s of marketing it is your ‘target market’ who have the strongest chance of becoming ‘qualified buyers’. This may be segmented into separate lists and studied as qualified buyers or a potential re-target prospect.
#2 – Distribution Channels
Once you identify your company’s target market it is time to plan for the distribution channels you will use to market the product or service. The goal of this is to reach qualified buyers that fit your target market who have the best chance of buying the product or service.
Please contact me today to put your foundations in place and build a strategy. I believe through these principles your company will reach new heights.
During the late 2010’s leading into 2020, business consulting and coaching has become a new norm for the job marketplace. With the rapid advancements in technology the need for business expertise and unique talents grows. If you know me you may be familiar with my corporate and entrepreneurial experience. Since graduating college with a degree in sales and business marketing, I have held positions in insurance, banking, real estate, and now my business consulting services along with the property management company I created. I predict that freelance positions will continue to rise, as I’ve backed that assumption with a statistical research completed by Upwork.
Here are 3 reasons to contract with a business consultant no matter the industry you are in:
Business College Studies – Most business consultants including myself have spent at least 4 years earning a well-rounded education in business. Not only do we bring a different perspective however credible and real world experiences across various business sectors. This will add flare and depth to your business ventures, not to mention we are able to pass along the college course learning we paid for.
It’s More Affordable Than a New Hire – Contracting with a business consultant is much more affordable than hiring an in-house employee and adding more debts to your payroll and benefits department. Business consultants typically work in a more efficient matter, including myself who enjoys productivity. The average rate is approximately $100/hour for business consultants in modern times.
Time Is Money – Outsourcing your business needs to an experienced professional will save you time and money in the long-run. The old saying “time is money” applies here because it is more efficient to contract an affordable consultant to do something quicker and with more quality than you are able to alone. Not to mention the savings of not hiring associate staff and having increased expenses. The relationship with your consultant may be as frequent or as little as needed, all customized for you.
Those are the top three reasons why hiring a business consultant is a no-brainier. As a business consultant myself I would love to help steer your professional work to new heights. I have contracted with multiple business consultants in my lifetime and always had a keen and well-rounded perspective working on my behalf to drive my businesses forward.