Strategy: Generate Extra Revenue While Leveraging Existing Overheard

I’ve always believed you put dollars in the bank, not percentages. For example, it’s not the percent of net income that’s important, but the total dollars of profit achieved.

To maximize dollars, manage the income statement by the ratios as a percentage of net sales — the dollars will take care of themselves. This month, I’ll review the key ratios of a typical profit and loss (P&L) statement for a B-to-B and a B-to-C catalog company and discuss how these ratios are different today than just a few short years ago.