How to reduce overheads to improve EBIT?
Well you need book your time into your calendar to focus on your COSTs. Irrespective of what Gross Margin you make, you won’t be able to pay bonuses and invest in growth without making a net margin. Don’t forget the difference between Gross Margin and EBIT is ‘overhead’.
Run a report that shows all your overheads for the past 2 years and then go into lethal mode. Does this deliver any value or what’s the ROI (return on investment) to me as a business owner ?
Develop a tactical plan to reduce overheads ASAP and get cracking onto your sales pipeline.