You can make all the Gross Revenues you want, but if your expenses are more than revenue you are only surviving on past success or infusions of cash from elsewhere. Profitability is the heart of business.
Most advice about improving profitability falls into three categories:
Operations suggestions include reducing operating cost, decreasing direct cost, decreasing indirect and overhead cost. Product advice includes things like focusing on high margin products and services, improving quality, decreasing inventory and reviewing pricing strategy. While Customer related advice includes reducing customer acquisition cost (CAC), trimming underperforming customers and getting referrals (low CAC new customers).
This advice is good but it makes the fatal mistake of looking at them as separate entities. They are not. All three exist in a continuous give and take of underlying patterns.
At Whitewater Projects we focus on these patterns. Mapping them and making insightful systemic improvements.