Every time you print a P&L report, print a column of percentages beside each expense line.
This percentage figure is a percentage of sales.
To get these percentages it is a simple matter of ticking a box in your reports creator in your software. This percentage figure becomes your Key Performance Indicator (KPI), which is something you can improve each and every day that you trade. KPIs are how business owners really understand and drive their businesses.
Identify the KPI for each expense line in your current P&L report.
Then set about improving it by just one or two percent. Share this new KPI with your staff and challenge them to meet it every day. This is how you work together to improve the business. When you next print out your P&L you will see decreases in expense lines. Each percentage point you can decrease your expenses puts money straight into your pocket.
Sure it takes time to get used to, but working with these KPIs each day takes as little as five minutes and gives you peace of mind that your business is on track.
