GREAT 24 IDEA: Become a Profit Enhancement Officer

We're all familiar with CEOs, but how about a PEO? A PEO is a profit enhancement officer, and that's what every business owner should be, according to Barry Schimel, a Maryland certified public accountant (CPA) who quit preparing tax returns to devote his life to boosting business owners' profits.

“If you ask employees what their responsibilities are, the word profit rarely comes out of their mouths,” said Schimel. “People do their work, but there's often no relationship between what they do and how it affects the bottom line.”

Beefing up the bottom line is the goal of Schimel's rigorous analysis and intense brainstorming sessions. Schimel says he's helped his clients reap more than $200 million in additional profits over the years.

The owner of an upstate New York moving company said “he gave us new ways of looking at things.” For example, he encouraged the office staff to quickly complete all the move-related paperwork. Why? The faster they billed clients, the faster they were paid. This tactic added about $1,000 a week to the company's bottom line.

Next, Schimel recorded calls to the sales department. “That was a real eye-opener,” said the moving company executive. “One salesperson was essentially giving away out-of-state business by referring customers to other movers.”

Schimel's other clients reaped a windfall just by reviewing customer accounts. “We found a lot of customers with special discounts that no one had reviewed for years,” said Gil Carpel, CEO of a DC-area delivery company. Schimel urged him to increase rates and charge clients more for mileage, round trips, and waiting time. Few customers complained about these minor adjustments, which brought in an extra $100,000 a year.

“It was really manna from heaven,” said Carpel, who also “fired” some customers who rarely used his services. Based on Schimel's brainstorming sessions, they also installed a toll-free 800 number for drivers who had been calling dispatchers collect.

So look around your office today and find ways to cut expenses and boost profits.