Ok, so you want to know your numbers to determine the health of your business. Wonderful! The first place to start is to run a Profit and Loss report from your accounting software. Choose a date range such as the last Financial Year or the previous 12 months to get an up-to-date assessment.

When you have done that you will most likely notice your net profit is significantly different to your bank balance. So where has that money gone? The report shows your business has made a profit, but you have no idea where the money has gone. Don’t stress, this is normal.

In this short article, we will uncover a few reasons why there is a difference between your reported net profit and your bank balance.

Not long ago, it was common for a cafe or restaurant to make 15-20% net profit. But, in the latest industry performance benchmark, the ATO reported the average net profit for Cafes and Restaurants in Australia is 10% or lower. Other research states that profit for hospitality venues is now between 3% - 8%.

Due to the rising costs of running a hospitality business, it’s hard to make a good profit. But there are ways to increase your profit, regardless of the current downturn. There are simple strategies you can implement right away to increase your profit. Here’s one simple strategy. Engineer (or design) your menu to get more sales and raise your profit. Let’s unpack a few ways on how to do that.

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Your Next Five Moves: Master the Art of Business Strategy by Patrick Bet-David is a powerful guide that unveils the secrets of effective strategic planning and, most importantly - applying strategy to the real world of business. Bet-David, an accomplished entrepreneur and founder of PHP Agency, shares his insights and experiences to help business owners develop a strategic mindset and make informed decisions.

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