If you’ve been in business for any length of time, I’m pretty sure profitability is important to you, and an aspect of your company that gets plenty of attention. If it isn’t important to you, then don’t bother continuing to read this, but I’m sure you know that if you aren’t profitable, your business won’t exist very much longer.
What really drives profitability and truly impacts your overall results? It might not be what you think. You could say it’s fixed and variable costs, sales or the other line items on your financial statement, but it’s really the things that impact those numbers that matter. It’s what is behind each number on the spreadsheets.