Financial Cents | Arizona's Financial Podcast
Brent Cannon, executive vice president, director of community banking at National Bank of Arizona® is your host of Financial Cents, Arizona’s Financial Podcast. Each episode, Brent invites fellow banking colleagues with decades of experience in the financial industry to provide both financial and business insights that you could only get if you had a friend in the industry.National Bank of Arizona was founded on the mission to build local relationships, deliver financial literacy and exceptional customer service. More than 30 years later this approach has not changed, serving almost all the communities throughout the state of Arizona. By seizing technology opportunities in the 21st-century, National Bank of Arizona continues this approach with the foundation in which this organization was built upon. This financial podcast was created in efforts to continue to connect with consumers and business owners, building relationships with new listeners and currents clients alike. To learn more, check out nbaz.com/financial-cents.
Financial Cents | Arizona's Financial Podcast
Keeping Your Business Healthy & Profitable During Uncertain Times Part II
Picking up the discussion from our previous episode about what businesses can do to remain profitable during uncertainty, we’re keeping the conversation going on profitability. Are the fixed costs of running a business really all that fixed? When should you turn to technological resources to make processes in your business more efficient? It isn’t nearly as glamorous as generating new revenue or boosting gross revenue, but there’s quite a bit businesses can do to increase efficiencies for big net gains. Because for every dollar a business earns, there’s a cost associated with it. And by lowering that expense, you can make your revenue dollars go much further.
In this episode of Financial Cents, host Brent Cannon picks up the conversation with returning special guests Stephanie Sims and John Lewis to talk about increasing operational leverage. John Lewis is a senior vice president and business banking manager at National Bank of Arizona, and Stephanie Sims is the founder of Finance-Ability and author of the book “Funding Your Business Without Selling Your Soul.”
According to Sims, “Operating leverage is how you can do the things that need to be done more efficiently,” and it involves looking at “the way that you provide your services or products, or even in the way that you acquire your customers, that you can do those things a little more efficiently. The way that helps is obviously by saving on cost, because what it allows you to do is obtain the same level of revenue at a lower cost.”
John adds, “as the economy goes up and down, your fixed expenses are going to stay the same and never go away.” So the key is taking a hard look at those expenses and deciding whether or not they justify the revenue they’re helping you create.
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