Increasing your profits does not have to be difficult - check out these proven bottom line results...
If you had every figure you needed at your fingertips, understood where all the risks were in your business, and what levers you could pull to improve things, think how much you could influence the profitability and cash position of your business.
Changes don't need to be sweeping; just incremental changes to parts of your business can have a significant effect.
QUESTION: What do you think the impact would be of making changes such as:
- Increasing sales by 1%
- Price increases
- New customers
- Sell more to existing customers
- Introduce a high end product to sell to your best customers
- Increasing gross margin by 1%
- Ditch unprofitable customers
- Sell more to your most profitable customers
- Sell more of your most profitable products
- Better prices on your purchases
- Cut overheads by 1%
ANSWER: For a company turning over £3m, with a 50% gross margin and a 3% net margin, this will add £60k to the bottom line.
Make it a 2% increase in sales and gross margin and you add £105k.
You can achieve powerful bottom line benefits by implementing strong financial controls and having financial expertise in your business.
You need a clear starting point so you can see where the easy wins are. Clear focussed management information will show you which parts of the business need attention and then you can measure the effects in the numbers as you make the changes.
Looking at our client base, of those who have been working with us for a year or more:
On average, clients have improved their balance sheet value by 29% in the last year - ranging from 10% to 400%.
Turnover grew by an average of 18% this year
95% of clients made a profit in this last year.
60% of clients increased their gross margin %, with a further 15% holding margins in line with last year.
If you can see it and measure it, you can focus on it and improve it.