Profit Improvement | Business Consultants
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BY COLIN RITCHIE Profit Improvement Helping Small Business Owners To Unlock the Profit They Deserve Profit Improvement, Improve Profit, Business Consultants
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Profit Improvement | Improve Profit | Business Consultants Are you looking to improve profit at your business? The sad truth is that many small businesses either cease to operate in the first few years of ownership, or if they continue, they don't provide a great return for you, the owner. In fact the statistics show that 80% of businesses cease in the first 5 years and that doesn't include the businesses that continue but produce a poor return. It doesn't have to be that way. Small changes really can make a dramatic improvement to your financial situation. If you haven't done already, I recommend that you look at the business development video to see the effect that a small change can have on your business valuation. Let's look at these small changes I'm talking about another way and I'll use the same numbers that I used in the business development video. • Say your businesses annual sales are $500,000 per annum • Say your average sale is $100. • That will mean over the year that you have 5000 transactions or invoices • You can easily get that figure by calculating your total sales invoices for the year and dividing that by your total sales • Now these transactions will be represented by purchases by your customers • In this case say on average customers buy on average 5 times a year. • That will indicate that you have 1000 customers • With me so far? • OK let's have a look at what we have. • We have sales of $500,000 • This is made up of 1000 customers who buy off you on average 5 times a year and spend on average $100 when they buy. • Do you think you could improve each of those numbers by just 5% It doesn't sound too hard does it? Let's have a look at the result of a 5% change Now it will depend on your gross profit % as to how much of that will be extra profit, but you can see what I mean, just a change of 5% in this case led to $78,000 in extra sales When I use this example the reaction of most people is to say, you know I bet we could do better than 5%, what would 10% look like? Why don't you do these numbers for your business and see what a small change could mean to you or let us help you with that. This has been Colin Ritchie for Inverell Business Solutions. Inverell Business Solutions 0267223115 0267223115 http://youtu.be/sMrTDDPh3lM
Transcript of Profit Improvement | Business Consultants
BY COLIN RITCHIE
Profit Improvement
Helping Small Business Owners To Unlock the Profit They DeserveProfit Improvement, Improve Profit, Business Consultants
Disclaimer
Any figures contained in this presentation are an example only and
don’t in anyway reflect the figures of any business nor do they profess to be the exact result that you would achieve.
Consult your financial adviser to address your specific situation.
Profit Improvement, Improve Profit, Business Consultants
The Horrifying Statistics on Small Business Failure
80% of small businesses will cease in the first 5 years of
operation
Profit Improvement, Improve Profit, Business Consultants
Small Changes Can Give Great Results
Watch the Business Development Video
See what a small change can do to your business valuationProfit Improvement, Improve Profit, Business Consultants
XYZ Business Example
Annual Sales $500,000
Say Average Sale is $100 / $100
Number of Transactions = 5000invoices
Say average customer buys 5 times a year / 5
Number of customers = 1000 customers
Profit Improvement, Improve Profit, Business Consultants
Just 5% Better
Existing Just 5% BetterCustomers 1,000 1050
x xFrequency of Purchase 5 5.25
Total Transactions = 5000 = 5512x
Average Sale $100 $105
Sales for the Year = $500,000$578,760
Increase in Sales $78,760 16%Profit Improvement, Improve Profit, Business Consultants
Complimentary Meeting
Reserve your complimentary meeting today to see what is possible with your business!
Profit Improvement, Improve Profit, Business Consultants
