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
|
Most businesses aim at nothing and hit it with amazing accuracy
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