In this episode of Get Your Shift Together, I'm diving deep into a topic that affects so many business owners: why you might be working for peanuts without even realizing it. We often have a "system" for pricing, but where did it come from? Dave down the pub? Or real, factual numbers? Today, I’m pulling back the curtain on your true profit margins. Grab your latest Profit & Loss report, because we’re going to uncover your gross profit margin and see if it aligns with what you think you're earning. The gap between expectation and reality is where your money is disappearing – your "profit leak." I'll share some eye-opening examples of how missed costs, client changes, and even seemingly small expenses can drastically reduce your actual take-home. It’s time to stop the guesswork and start understanding your numbers to build a truly sustainable business.

Key Takeaways:

1. Many businesses operate with arbitrary pricing methods that don't reflect true profitability. 

 "Where did you get this system from thin air Dave, down the pub? Or maybe someone else just said they was running a similar business and that's what they done. You should have got it from real numbers." - Nicola J. Barnett

2. Understanding your gross profit margin is crucial for identifying profit leaks. 

"The gross profit margin shows you how much money you earned from selling what you sell." - Nicola J. Barnett

3. Unaccounted-for costs are often the culprit behind vanishing profits.  

"What has not been considered when pricing a job? Have you allocated all labour and subcontractor costs to every job that you price? Have you included packaging and postage? And what costs could have been missed?" - Nicola J. Barnett

4. The disparity between perceived and actual earnings can severely impact a business's sustainability.  

"The gap between what you think you charge and what you actually make is where your money is disappearing. This is what we would call a profit leak." - Nicola J. Barnett

5. Relying on guesswork instead of facts for pricing leads to working harder for less. 

 "Quit making pricing decisions based on guesswork and wishful thinking. - Nicola J. Barnett

Want to fix your business? Join The Business Fix With Nicola

Here's what you'll receive when you work with Nicola J. Barnett to get your business on track.

• A Proven Framework: Use the Efficiency & Profit Framework to end overwhelm, get cash flowing, maximize profits, and build a business that won't break you.
• Clarity and Control: The first step is a "Financial Awareness Review," where Nicola will dig through 12 months of your financials to give you the truth about your business and create a 90-day roadmap.
• Hands-On Implementation and Transformation: In "The Business Fix" program, you'll get structured action and accountability to turn awareness into fast results. This will help you fix cash flow leaks, improve profits, and implement smooth systems.
• Full Support for Deep Transformation: For those needing a complete overhaul, the "Survive to Thrive" program offers hands-on support to rebuild your business from the ground up, giving you predictable cash flow and sustainable profitability.
• Ongoing Momentum & Accountability: With the "Strategic Advisory Partnership," you get monthly focused strategy sessions to ensure your progress sticks and your business continues to grow on solid foundations.

Learn More about the Profit & Efficiency Frame work & For a deeper dive into this topic and more, visit our website: p...