Allocating Your Time to Improve Profit

Andrew Mattner • January 26, 2026

When improving business profitability, many business owners make the mistake of focusing too much on cutting costs instead of striking a balance between reducing expenses and growing revenue. 


Most business owners and managers simply focus on cutting overheads without balancing their profit-improvement time in other important areas like growing revenue and improving margins.


To get the best outcomes you must take a strategic approach to your profit and loss (P&L) statement.  This requires allocating your time effectively across key areas: overhead costs, direct costs, and revenue improvement.


1. Overhead Costs (10-15% Time Allocation)


Overhead costs—such as rent, utilities, and general administrative expenses—are relatively fixed. While you might be able to cut these expenses by renegotiating contracts, reducing waste, or improving operational efficiency, significant reductions are typically limited to 10-15%.


Since potential savings are limited, no more than 15% of your profit-improvement time should be devoted here. Focus on reviewing these costs quarterly and ensure any ongoing expenses still provide value.


Key Actions:


  • Negotiate supplier contracts for rent, insurance, and utilities.
  • Identify unnecessary or redundant services.
  • Automate administrative processes to improve efficiency.


2. Direct Costs (30-35% Time Allocation)


Direct costs include both fixed and variable costs related to delivering your product or service, such as raw materials, labour, and manufacturing expenses. In my experience, businesses can achieve up to a 30% margin improvement by optimising labour, improving operational efficiencies, and negotiating buying better terms with suppliers.


This is a high-leverage area because improvements here go straight to your gross margin. Allocate around 35% of your time to reviewing and improving your direct costs.


Key Actions:


  • Improve labour utilisation through better scheduling and training.
  • Optimise procurement processes to secure better pricing from suppliers.
  • Reduce waste and inefficiencies in production or service delivery.


3. Revenue Improvement (50% Time Allocation)


The most significant opportunity for profit growth lies in revenue improvement. Efforts to enhance your sales process, increase lead generation, develop new products, or improve pricing strategies often yield much higher returns than simply cutting costs.


By focusing half of your time here, you'll create sustainable, scalable profit growth. Marketing, business development, and refining your sales process are key to driving top-line revenue. Pricing is another critical factor—small price increases can have a significant impact on profitability without increasing costs.


Key Actions:


  • Optimise your sales process to increase conversion rates.
  • Invest in marketing to generate more qualified leads.
  • Explore pricing adjustments to increase margins.
  • Develop strategic partnerships to expand your market reach.


Final Thoughts


Improving profitability requires a balanced and strategic approach. By dedicating 50% of your time to revenue growth, 35% to direct cost management, and 15% to overhead reduction, you'll position your business for sustained profitability. Remember, cutting costs has a limit, but revenue growth is where true scalability and success lie. Make this time allocation a regular part of your business planning, and you'll see steady improvements over time.

Defining Business Values

By Andrew Mattner • May 5, 2026
When Was the Last Time You Revisited Your Core Values? When was the last time you revisited your business’s core values? Not the words written on your website. But the principles that genuinely guide how decisions are made, how your team behaves, and how your customers experience your business. Core values aren’t decorative statements. They are the backbone of how a business operates. When they are clear and consistently lived, they create alignment, trust, and momentum. When they are vague or inconsistently applied, teams lose direction, customers sense the disconnect, and growth becomes harder than it needs to be. Why Core Values Matter Strong core values act as a compass. They help you: Make consistent decisions Set clear behavioural expectations Build a culture your team is proud to be part of Strengthen trust with customers Navigate difficult conversations with confidence They become the filter through which strategy, hiring, performance, and leadership flow. Without that filter, decision-making becomes reactive. Standards shift. Messages become mixed. And over time, culture weakens. Clarity around values reduces friction across the business. Core Values Should Be Practical Values should not be abstract, overly polished, or filled with corporate jargon. They should answer simple but powerful questions: What principles are non-negotiable in this business? What do we want to be known for in our market? How do we expect our team to treat each other - and our clients? When clearly defined, values stop being words and start shaping behaviour. They move from being statements on a wall to standards that guide everyday actions. Embedding Values Into Daily Operations For core values to have real impact, they must influence more than marketing copy. They should shape: Hiring decisions Performance reviews Customer interactions Leadership behaviour Strategic priorities If someone joins your team, your values should be visible in how they are onboarded. If someone underperforms, your values should guide how feedback is delivered. If a strategic decision needs to be made, your values should help determine the right path forward. Values must be visible in action - not just in conversation. The Bigger Picture Businesses that scale successfully are not built on strategy alone. They are built on alignment. When your values align with your strategy, your team pulls in the same direction. Decisions become clearer. Performance strengthens naturally. If you would like to explore how to define or strengthen your core values, please get in touch. Register for our Business Accelerator Planning Workshop and build a plan based on values. 

Hustle Is Not a Strategy

By Andrew Mattner • April 30, 2026
Hustle Is Not a Strategy There’s a lot of talk about hustle in business. Long hours. Early mornings. Late nights. And while hard work absolutely has its place, there comes a point where simply working harder doesn’t move the needle the way it used to. If you’re busy every day but not seeing the growth you expected, it may not be an effort issue. It may be a strategy issue. Hustle Keeps You Moving. Strategy Moves You Forward. Many business owners find themselves caught in a constant cycle of activity: Responding to emails. Solving problems. Chasing opportunities. It feels productive - and often it is. But without a clear strategy guiding those actions, progress can feel scattered. Hustle without direction becomes noise. Strategy brings focus. What Strategy Actually Does A well-defined strategy does more than give you a plan on paper. It helps you: Focus on the right opportunities Set measurable objectives Align your team around shared priorities Make decisions with confidence Know when to push forward - and when to pivot Instead of reacting to whatever lands on your desk, you begin operating with intention. And that changes everything. Sustainable Growth Isn’t About More Hours It’s about working on the right things, with clarity. When strategy leads: Your energy is directed Your team is aligned Your decisions are deliberate Your growth becomes scalable Hustle alone can be exhausting. Strategy creates momentum. A Simple Reflection If you stepped back for a moment, could you clearly articulate: What your top three priorities are this quarter? How each team member contributes to them? What metrics truly define success? If the answers feel unclear, it may be time to shift from constant activity to focused planning. We work with Australian business owners to build clear strategies for growth, workforce planning, financial performance, and long-term sustainability. If you’re ready to move from hustle to strategy, get in touch. We’d love to work with you.

Why Business Feels Lighter When You Have Clear Direction

By Marc Grantham • April 28, 2026
Why Business Feels Lighter When You Have Clear Direction Have you ever noticed how much lighter business feels when you’re clear on where you’re heading? There’s a different kind of energy that comes with clarity. Many business owners don’t struggle because they lack effort. In fact, it’s usually the opposite. They’re working incredibly hard - long days, constant problem-solving, always “on.” But without a clear direction, all that effort can start to feel draining rather than energising. Direction Changes Everything When your business has a defined direction, something shifts. Decisions become easier. Priorities become clearer. Distractions lose their power. Your team pulls in the same direction. Instead of reacting to whatever pops up each day, you begin acting with intention. And that shift alone can restore a surprising amount of energy. From Busy… to Focused Without direction, every day can feel like a collection of random tasks. You’re busy - replying to emails, solving issues, attending meetings - but not necessarily moving forward. With direction, you know: What matters most this quarter What to say no to Where to invest your time and resources How your team contributes to the bigger picture Clarity turns effort into progress. And progress feels good. Direction Creates Purpose A clear business direction does more than organise your calendar. It gives purpose to your work. It aligns your team. It builds confidence in your decisions. When everyone understands the “why” and the “where to,” momentum builds naturally. Conversations become more productive. Priorities become sharper. Energy feels focused instead of scattered. A Simple Reflection If you paused today and asked yourself: Do we know exactly where we’re heading this year? Are our daily actions aligned with that goal? Does every team member understand their role in getting us there? Would the answers feel clear - or uncertain? Because often, what feels like fatigue isn’t about workload. It’s about a lack of clarity. And when clarity improves, energy follows. If you’ve been feeling stuck, stretched, or reactive, it may be time to step back and reconnect with your direction. We run our Business Accelerator Planning Workshop with hundreds of clients, and we’re now opening it up to Aussie businesses ready to grow with clarity. If you’re ready to move from busy to focused - and build real momentum - register below.
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