Grow Your Own Business Demo

The example below shows that small changes can have a huge impact on a business’ profit potential. In this example a 1% improvement in key areas results in an increase in profits of £45,355. That is an increase of over 90%. If you would like to explore the profit potential within your business please contact us on 0141 332 6331, or email mail@russell-russell.co.uk, to arrange a free consultation.

  Current  Change 1% Improvement
1 - Average Transaction Value 


Average sales price per transaction
300.00 1.00%
303.00
Variable costs
200.00

1.00%
198.00

Gross Profit per transaction
100.00


 
105.00


Gross profit margin
33.33%
  34.65%
2 - Number of customers
     
Opening customers 500   500
New customers- opening balance
50 11.00%
55
Lost business
(50)
9.00%
(45)
Closing customers
500
2.00%
510
3 - Frequency of transactions per customer
10
1.00%
10.10
2 & 3 = Total Transaction Volume
5,000

  5,151

4 - Productivity
   
Admin and Finance expenses
450,000

1.00%

445,000


       
Summary income statement  Current
1% Improvement
Turnover
1,500,000

1,560,753
Cost of Sales
(1,000,000)
(1,019,898)

Grow Profit
500,000

540,855
Admin and Finance expenses
(450,000)

(445,500)
Net profit / (loss) before tax and depreciation

50,000

95,355

Increase in profits before tax and deprecation £45,355

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Most businesses aim at nothing and hit it with amazing accuracy
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