Joshua Morse: Why Your 5% Net Profit Isn’t Good Enough - And What to Do About It

Please, let me know if I’m on the right track with the podcast by hitting Subscribe/Follow and then, download the Blog Summary & Josh’s contact details: https://criticalfewactionspodcast.com.au/JoshuaMorseEpisodePageIt means the world to me and helps me know I’m adding value.Founders and CEOs: Are you really making enough profit for the risk you’re taking?If your net profit margin hovers around 4–5%, you’re not alone. But what if that return isn’t worth the stress, the sleepless nights-or the risk to your house and future?In this episode of the #criticalfewactions, John Downes sits down with long-time business advisor and accounting partner Joshua Morse of Sarwood Dawson, to unpack the truth about SME profitability, strategic costs, and the risks too many CEOs ignore.Together, they explore why smart businesses aim for 15%+ net profit, how to stop bleeding money below the gross profit line, and what to do now to protect your margin and your cashflow.What You’ll LearnWhy 5% net profit might be too low - and how to benchmark what’s realistic= How to distinguish strategic investments from admin overheads= The #1 habit of profitable businesses (hint: it’s not revenue-related)= What a 3-way forecast is and why it’s a game changer for cashflow control= When to stop doing $30/hr tasks as a $500/hr CEO⏱️ Highlights00:00 Meet Joshua Morse: Business Excellence Judge01:03 Understanding Business Profitability02:05 Operational Costs and Strategic Spending08:03 The Importance of Cash Flow Management08:43 Investing in Technology: Timing and Strategy14:14 Governance and Outsourcing for Growth20:52 Case Study: Optimizing IT Systems30:44 Finance, Borrowing, and Strategic Asset Management33:47 Taxation and Compliance Costs37:17 Tools and Strategies for Better Profitability42:10 The #CriticalFewActions™ for Founders and CEOsTake Action: What You Can Do Today✅ Benchmark your net profit against industry averages✅ Reclassify your operating costs: essential vs. investment vs. waste✅ Build a 3-way forecast and review it monthlyLet’s Stay ConnectedIf this episode challenged your thinking, subscribe to the channel and share it with a fellow business leader. Leave a comment: What’s your net profit target-and is it enough for the risk you’re carrying?SponsorThe CEO Masterclass in Strategic Planning & Implementation – helping founders and CEOs of mid-sized businesses turn ambition into action. https://criticalfewactionspodcast.com.au/JoshuaMorseBACFinal ThoughtYou didn’t build your business to break even.You built it to create value, freedom and security.This episode might be the push you need to raise your standards; and take action.#ceomasterclass #profitability #smeleadership #businessstrategy #NetProfit #Cashflow #ThreeWayForecast #StrategicPlanning #BusinessMentor #AustralianBusiness #JohnDownes