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
|
||