It’s no surprise that a part of the process of increasing corporate profitability is a complete examination of the profit and loss statement (P&L) to determine what costs can be reduced or eliminated. However, a turnaround expert tends to look at things a different way. I have already discussed how to increase the revenues portion of the P&L by:
Identifying strategic markets through the “slice and dice” analysis method
Increasing margins on existing business through niche pricing
Getting out of unprofitable market sectors and shedding unprofitable customers
Now the time has come to examine the rest of the P&L in regard to the expenses beyond cost of goods sold. These also reduce profitability and ...