In this episode, we tackle the concept of margin erosion and how it impacts scaling businesses. I share insights on how growing your sales doesn't necessarily equate to growing your profits. We dive into common culprits like hiring rates, customer acquisition costs, and overhead, providing practical solutions to maintain healthy margins. You'll learn the importance of knowing your fixed vs. variable costs, adjusting your pricing structure, and implementing standardized processes without compromising customization. I'll also emphasize the necessity of regularly reviewing your finances to ensure sustainable profitability. Tune in to gain actionable strategies to improve your margins, ensuring that your business growth translates into increased profitability.
What You'll hear in this episode:
[00:50] Understanding Lifestyle Creep in Business
[01:15] The Concept of Margin Erosion
[02:50] Warning Signs of Margin Erosion
[03:40] Customer Acquisition Costs
[06:45] Diagnosing Margin Erosion
[09:00] Improving Margins and Scaling
[10:05] Standardization and Customization
[13:10] Financial Oversight and Cash Flow Management
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
