Maximise your profits
Profit Maximisers to Improve your Bottom Line
We have developed these additional products in response to demand from our clients wanting to know what areas can make an impact on their business.
These are usually one off projects, often with a scheduled follow up to make sure the benefits are being seen on the bottom line.
Customer Profitability Maximiser
In every business it's vitally important that you know how profitable your customers are. We can help you undertake a systematic approach to reviewing how profitable your customers are, where the actual profit is coming from, and to understand how the profitability is calculated once you take into account ALL of the costs of servicing each customer. You also need to understand your product profitability to be able to cost each client.
The results are often surprising with the profits not being where was thought, but also often confirm the nagging suspicion about how much they actually make from their top customers. When you consider that the 80:20 rule applies in most companies, with 80% of your profit coming from the top 20% of your customers, you really do have to be sure those top 20% truly are profitable.
Once armed with the facts you can then plan what to do about it - once you know where the profits and losses lie in your customer base, you can make significant improvements to revenue, gross margin and therefore straight through to the bottom line.
Product Profitability Maximiser
Many businesses do not regularly review how profitable each of their products are, and over time the profits on individual products can get eroded with price increases, customer discounts, production issues etc. It's particularly important to know how profitable each of your products is and to put this in context of your product mix - i.e. the volumes of each product you sell. Again the 80:20 rule tends to apply here - 80% of the profit coming from 20% of the products.
Once you know how your products rank in terms of profitability you can take steps to increase your overall profitability and make some significant improvements.
The same principles apply to customer profitability and often very easy wins can come from understanding the profitability of your product range.
Full Business Review
This is a systematic review of your business, working through the profitability of your products and customers, sales pipeline and marketing, your gross margin and how this has performed over time, the overhead cost base, looking at your working capital management - debtors, creditors, stock and work in progress, your cost of that working capital and other debt. We also review your current information and what data you use to run the business.
This review results in an action plan for the business to work to, directly aimed at increasing profitability and the cash position of the company. We can also help you implement the action plan and put in place the measurement system you will need to keep track of progress and make sure the bottom line increases.
Accounting department review - making sure they add value to your business
Over time, accounts departments can grow, but the directors may question what value they add to the business, and if inefficient systems have developed as the company has grown, especially if you don't get the information you want and need, when you want it. Often part- manual systems prevail, meaning repetitive tasks could be automated, freeing up staff for things that can make more of a difference to you.
We can conduct a full review of how your finance team operates to make sure the processes are as efficient as possible and are directly supporting the business goals. The impact of the department on cashflow is a particular focus - i.e. - credit control processes and efficiency, purchase ledger and how cashflow is controlled.
We can help your team design the information that you need to run the business, including Key Performance Indicators and flash reporting, and put in place reporting timetables to make sure you get it when you want it.
Any training needs can be taken care of to bring your team to where you want them to be.
