The overarching goal of every business plan is to make more money. One of the critical ways of determining if your company is operating on a profit is by checking its profit and loss statement (P&L). The P&L is a summary of incurred losses and earnings over a period. What does the perfect P&L look like, and what metrics should you use to see if you have it?
In this episode, I define the perfect P&L and describe how we use it for our clients in Clever Profits. I explain how this concept originated and how it’s designed to maximize a company’s profitability. I describe the various metrics to use to determine P&L. I also share best practices in analyzing business performance and how to get the outcome you set out for.
“The perfect P&L is the foundation of a framework to maximize the performance of businesses and clients we’re working with.”
– Adam Rundle
This week on the Expensive Advice Podcast:
- Understanding how the perfect P&L works
- Where the concept of the perfect P&L started
- How to use the perfect P&L to maximize profitability
- Why profitability isn’t the end all be all
- The variables used to determine perfect P&L
- Finding your company’s key drivers for higher profits
- Knowing your profit margins and other questions to analyze performance
- Applying reverse engineering to identify your desired outcome
Turning Boring Money into FUN Money
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