Know Exactly Where The Money Comes From
Companies often focus on profitability without much regard for where exactly the profit is coming from. Slicing and dicing your company's income to understand how income breaks down by product line can help you make better decisions about how to price products, where to invest resources, and perhaps when to cut costs. Identify the profit-leading products and be sure you're making the right ongoing investments. Find out which products aren't making you money and why. Smaller companies can do this by approximation if their systems aren't yet sophisticated enough to cut the data. If your company has numerous products, batch them into categories that will make this type of measurement easier.
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