Profit expansion with no increase in sales is achievable simply by moving numbers.
Business owners following advice from their accountant rarely conceptualize the economic possibilities of repurposing major expenditures and reclassifying certain expenses that may be able to recouped on sale of the business, brand licencing, or reclassifiable, or able to be repurposed & recycled.
Altering the P&L by reclassifying a previous expense to an asset doubles revenue
Money out the door not amortized is a drag on profits. Reclassifying an expenditure does wonders for profits and business valuations when planning to exit.
Previously recorded expenses marvellously transforms in to profit improvements of double the amount
An economic perspective is a more rational approach to expenditures which can subsequently flow back to replenish cash flows – as with mast heads included as assets of value when businesses are sold.
Corporate Advertising’s purpose is to create awareness, build image and develop brand loyalty. An Insurance group used it to motivate agents;
Imagine a R&D program designed to increase labor productivity and development of a robotic workforce which appoints displaced labor as enterprise shareholders in a business they manage and provide stand by replacement by humanforce in electric storms and brown outs & redirection of robots that took over performance of mundane tasks with repetitive stress and physical atropy (as typists and computer operators are often afflicted with), enabling management and development roles for talented executives & highly paid PERSONNEL AND HR department heads will retain workers negatively experiencing COVID economic impacts.