Unlock Profit Secrets: Calculate Your Business's True Cost in 1 Hour! #shorts
In this YouTube short, Bill Canady advises business leaders to spend one focused hour with their CFO and controller to compute a simple profitability ratio. He outlines how to construct the numerator by subtracting all material‑related expenses (materials, purchased components, subcontracting, freight, duties, royalties, rebates, cash discounts) from revenue. The denominator is defined as every dollar of human‑related cost across the organization, including direct labor, contractors, PEO fees, and the human component of COGS. After summing both sides, the ratio is obtained by dividing numerator by denominator. Canady warns against letting finance build a detailed multi‑week model, arguing that a quick whiteboard exercise yields two transparent numbers and reveals hidden workforce costs—often showing that a significant percentage (e.g., 11%) of labor is “invisible.” The core message is that a fast, collaborative calculation surfaces hidden costs and drives better profit insight.
