2 Steps For Increasing Company Profits or Performing Business Turnarounds

1. Eliminate wasteEliminate reports, habits,profit-generating activities.Once the waste
products, duplicate input, and processes thatreduction frees up money, time, labour, space and
waste time and money. These drain labor, moneyenergy, invest part of the savings in continuous
and energy from the business.Two-thirds ofimprovement.Some of these continuous
products or services sold incur more costs toimprovements are already in most company's
produce than they are sold for. These are a drainbudgets. Equipment replacement (depreciation),
on profits. These losers can be reduced by eithermarketing, training and research and development
increasing prices, reducing direct costs incurred inare all current cost or expenditures to generate
producing the product or service, reducingfuture profits.An analysis of return on investment
overhead costs allocated to the products orof discretionary expenditures should find further
services, or discontinuance of selling of theareas where the investment will yield results.
product or service.Some of these profit robbingInvestment should be made in a combination of
costs may be found through asking employeesprojects with short payback periods and those
for feedback on duplication of efforts, unusedwith high rates of return.Byron Lund is President
reports, and other wastes of time or money, orand CEO of Bizwiz Consulting Group Ltd., an
through cost accounting or other analysisinternational business analysis product developer
systems.Eliminating waste increases the amountand vendor which performs consulting services in
of space, labour, time, energy and moneybusiness analysis, improvements and turnarounds
available for other profit-making activities.2.in Calgary, Alberta, Canada. Further information is
Reinvest a portion of the savings inavailable at .