Discover The Simple Truth About Your Profitability In Hospitality
Unfortunately, the lockdowns keep getting extended, and with the covid cases not decreasing, there are rumors that the lockdown might be extended further. This is not good news for hospitality businesses that are already playing it hard, some struggling more than others. While lockdowns are frustrating, I think they can have a positive aspect to them.
For many business owners who are actively involved in operations and who work 60-70 hours each week, this is an opportunity to slow down and have some time to unwind.
It is also a good opportunity to take a closer look at your business model, your financials, and your internal systems and processes.
Last week, I had the privilege of being interviewed by Dominic Cain who runs a group on Facebook for cafe & restaurant owners committed to their business growth and profitability.
During the Q&A session, I was requested one tip that I thought would benefit the participants. My answer was simple – take a print-out of your profit and loss report, review each and every expense item on it, remove/trim anything that is not required, or see if you can get a better deal on that expense (example – EFTPOS fees or utility bills).
It’s that simple – if you would like to run a highly profitable business (and sell it at a later date for a good profit), all you have to do is maximize your revenue and minimize your expenses. There is no magic formula for this.
The visually appealing image above from Eldred Hospitality sums up this point. I hope you find it useful.