I have seen many businesses that do not make a profit.
Sometimes they think more volume will fix the problem. If they can get sales up, they will make money.
That may be true IF you make a good enough gross profit and IF you do not add to indirect (G&A) costs.
You may have things set up right but are just below your breakeven. Then there is the issue as to whether there is more business even available for what you sell in your area.
But I have seen many examples where a company then gets volume up and STILL does not make money.
This company should NOT try to grow topline business anymore.
Instead, focus on making a profit with the volume you have.
The problems could be –
1) Direct costs are too high and gross margin is too low.
2) Prices are too low. (Or too much discounting.)
3) Indirect expenses are too high.
There could be other reasons, but I’d bet most fall into one of these categories.
What is your main issue to fix to make a better profit?
At the moment our sales commission, direct payroll and material cost are on target, which has led to a healthy gross profit. Our indirect payroll is a bit high (1% over goal) as a function of being a little light on install revenue. We are in the process of rebuilding production capacity to address this. Additionally, there is quite a bit of”diamond cutting” we can do to gain even more.
Go, Austin!