Most business owners think increasing profit means increasing sales. But sometimes the fastest way to make more profit is to clean up the business you already have.
Over the years, one of the biggest lessons I learned from operating businesses was that profit disappears through hundreds of small daily mistakes.
Poor closing procedures.
Waste.
Stock losses.
Equipment not maintained.
Incorrect storage.
Poor opening procedures.
Individually they may look small.
Repeated every day, they become significant profit leaks.
A Strong Closing Procedure Protects Tomorrow’s Profit
One of the areas we concentrated heavily on was the closing procedure.
Why?
Because what happens tonight affects what happens tomorrow morning.
If the coffee machine is not cleaned correctly at night, tomorrow’s coffee can taste bitter. That affects the customer experience and potentially creates waste.
If food isn’t chilled, stored or defrosted correctly, product can be lost before it ever reaches the customer.
If high-cost stock isn’t checked regularly, shortages and over-portioning can continue unnoticed.
And if the business is closed properly, the opening team isn’t spending tomorrow morning fixing yesterday’s problems.
Five Places to Look for Hidden Profit
1. Closing procedures
Make sure the business is properly reset every night.
2. Opening procedures
Start the day ready to trade rather than correcting mistakes.
3. High-cost stock
Know where your expensive products are going.
4. Waste
Measure what is being thrown away and understand why.
5. Equipment
Clean and maintain equipment before problems affect quality or productivity.
Small Leaks Become Big Numbers
A $20 mistake doesn’t feel significant.
But $20 every day is more than $7,000 a year.
And most businesses don’t have just one leak.
They have dozens.
That’s why increasing profit doesn’t always start with finding another customer.
Sometimes it starts by tightening the operation.
Before you chase more sales, clean up the profit you are already earning.
Profit is in the daily disciplines.
— Ismail Davids
Founder, Profit Master™