It's crucial to know how to read and interpret your P&L statement so you can make informed decisions based on the data. Analyzing the loss side of the P&L statement can be tough, and that's where the "heated seat syndrome" comes in.
Have you ever felt like you couldn't live without something, even if it wasn't necessary? For me, that thing was heated car seats. At first, I thought they were frivolous, but now I can't imagine driving without them - especially in my chilly hometown in Idaho!
As business owners, we tend to hold onto expenses that we have become accustomed to, even if we don't really need them. By applying the heated seat syndrome principle, we can identify those unnecessary expenses and cut costs to increase profitability.
Are there things you're holding onto that you could do without? It's not always easy to let go of things we've become entitled to, but by doing so, you'll set yourself up for greater success in the long run. Let's get serious about understanding our P&L statements and cutting costs where we can. With the heated seat syndrome principle in mind, we can make informed decisions and achieve greater profitability in our businesses. Let's do this!
Check out The Appraiser Coach Podcast for more info on this topic:
