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How to Drive Profitable Business Growth

 
  Arthur F. Rothberg, Managing Director, CFO Edge, LLC  
   
  This is the first article in a three-part series on improving profitability.

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  Article Summary  
Along with cash flow and cost controls, Los Angeles and Southern California business leaders look at profitability as a primary measure and driver of successful businesses.

Profitability requires planning and disciplined execution, and the best way to ensure it is to perform a customer and product profitability (or CPP) analysis. Outcomes help gauge profitability by customers and products - two needed perspectives that provide critical management information beyond profit and loss statements.

This article looks at the why's and how's of a customer and product profitability analysis, as well as suggestions on proactive steps that can be taken in both areas to increase profitability.

Outcomes from a customer and profitability analysis can help executives make strategic decisions about whether or not to continue serving unprofitable customers and offering unprofitable products. An outsourced CFO services professional with a proven track record executing CPPs can be an invaluable resource in this endeavor.

Other articles in the profitability series can be found here:

Article 1: This page describes the first article.
Article 2: Will Your Sales Coverage Model Help Drive Profitable Growth?
Article 3: Driving Profitable Growth: How to Set Prices Throughout the Product Life Cycle

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