Build Your Bottom Line

We all want to be successful. In business, that means making money and having as much as possible sticking to your bottom line.


Basic view of bottom line

What exactly does Mentio mean by “bottom line”?

INVESTOPEDIA describes it as a company’s net earnings, net income or earnings per share (EPS). Bottom line also refers to any actions that may increase/decrease net earnings or a company’s overall profit. A company that is growing its net earnings or reducing its costs is said to be “improving its bottom line”.  Investopedia further explains that the reference to “bottom” describes the location of the net income figure on a company’s income statement. It is almost always the last line at the bottom of the page after all expenses have already been taken out of revenues. Revenues are considered the “top line” figures.

Most companies aim to improve their bottom lines both by growing revenues and managing costs. That is all well and good but it is easier said than done. Especially when you are a 24/7 small business owner wearing a million different hats. Most business owners are busy putting out fires or focusing on what they do best – building, selling, servicing – not pouring over their financials.

But building a bottom line requires discipline and attention to your financials. Unfortunately, lack of time and expertise means that small businesses often drop the ball at this point, negating all their hard work.  Cutting through the financial reports and taking action based on the numbers is essential to generating profit. Getting caught in the weeds will not help


Classic Triple Bottom Line

Once you have your financial bottom line in order, you have conquered one of the three pillars of the Triple Bottom LineProfit. After that you can focus on the other two pillars – People and Planet. That is a bit more complicated that counting up dollars.

Mentio can’t help you with that yet. Maybe one day.


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Sean - Do Not UseBuild Your Bottom Line