FEATURE STORY
By Jim Yount
Five keystone pillars of profit:
Accountability and strategic evaluation for growing profits
B
eing oriented by simplicity rather than complexity, you will
recognize the "Five keystone pillars of profit," by Jim Yount Success
Dynamics (JYSD) as being typical of today's generally accepted
accounting principles. I've been told the Italians developed the
double-entry accounting system about 500 years ago. Perhaps
that's why in these hi-tech times of the 21st century, we at JYSD chose to attach
"Ageless formula for success" to the title of this series.
"Five keystone pillars of profit" is JYSD's strategic business planning and
consulting approach to maximizing profitability. It is easy to track your business
performance by reviewing a typical accounting report usually titled, "Income
Statement and Balance Sheets," which are available at the end of each month from
most accounting software.
What is a "pillar"? In the real world, a "pillar" is defined as a part of a vertical
superstructure support, of a building or bridge. These five keystone pillars
(support) of profit are identified using mathematical principles. Let's take a brief
look at these five keystone pillars of profit. They are as follows:
#1 NET SALES: Your income from the products and services you sell.
#2 COST OF GOODS: What you pay your suppliers for the inventory
you sell.
16
OUTDOOR POWER EQUIPMENT
"We all live by sales."
That's a favorite quote
of mine from my German
friend Herr Lange. And he
is absolutely right. Sales is
the activity that feeds the
revenue stream of money.
Without sufficient revenue/
income, the business will
eventually close its doors.
www.outdoorpowerequipment.com
Image ©istockphoto.com/ozgurdonmaz
Second article in a series
