E609: 3 Ways Your Business Is Leaking Profits And How To Solve It

In this Ecomcrew podcast episode, Dave interviews Nate Littlewood from Future Ready CFO about improving profitability for small and medium-sized e-commerce companies. Nate shares three key strategies: understanding the financial implications of inventory purchasing from both a profit and loss and cash flow perspective, taking a zero-based budgeting approach to indirect and overhead costs, and applying the Pareto principle (80/20 rule) to the product portfolio by focusing on revenue per SKU. He emphasizes the importance of managing inventory effectively to free up cash flow, regularly reviewing and cutting unnecessary expenses, and optimizing product offerings to avoid overwhelming customers with too many choices. Nate also touches on the significance of investing in supply chain optimization and product differentiation for long-term success, and he offers advice on aligning projects with individual strengths within a team.