2. ”The Language of Business is Finance!”
Warren Buffet – Worlds Top Investor
“If you don’t understand the Language
how do you keep Score?”
Keith Cunningham – Creator of Keys to the Value &
Tony Robins Wealth Coach
3. Profit
Margins
Up Sell/
Cross Sell
Enquiries Conversion
Rate
Life Time
Value
5 Components of Your Business Engine™
Score the pistons from 1 – 10
(1 being lowest and 10 being highest)
5. 3 Critical Areas of YOUR Financial Wealth in
the Business ...
Net Profitability
Sales & Turnover
Balance Sheet Value
1
2
3
6. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Getting to Break-Even & Beyond
£2,500,000
£2,000,000
£1,500,000
£1,000,000
£500,000
£0
(£500,000)
(£100,000)
Revenue
Total
expenses
Variable costs
Fixed costs
Net Profit
Break
even
Net profit
Max
Utilisation
7. What Profit Per Hour (PPH) Do you Need?
£100K
2000
hrs= £50 / hr
x£1m
2000
hrs
£500 /
hr
8. Review Your Business Finance Dashboard™
Financials
Budgets
Cash flow
Cash Gap
Overdraft limits
% Profit Margin
Balance sheet
Cash Flow
Debtors
Creditors
Average
Payment Days
Sales pipeline
warning
Keep track of
incoming work
Cash in Bank
10. Discounting vs. Increasing Prices …
Base Price
Base Price 10%
Discount
10%
Discount
10%
Increase
10%
Increase
11. How and Where to Raise Your Prices ...
• Just Do it!
• Raise Periodically – every 5 new
customers ...
• Split Test Pricing Models ...
• Increase shipping or carriage charges ...
• Survey customers ...
• Demonstrate a better ROI ...
• Sell Larger Units ...
12. How and Where to Raise Your Prices ...
• Sell Product or Service Bundles
• Sell Higher Quality ...
• Create a New Niche & Own it ...
• Demonstrate more “Proof” ...
• Volume / Time Based Model – Low
cost Airlines ...
• Set Sales Targets Based on Margin
14. 0 2
0
4
0
60 80 100 120 140
Payables
Receivables
Cash gap
Inventory
Where is the cash in
Avoiding The Cash Gap Crash™
Stock
arrives
Cash
paid
Stock
shipped
Cash
received
your business?
16. Strategies to Cut Your Cash Gap ... Fast!
• Offer discount for early payments…
• Set Cash In Targets …
• Improve your Credit Control Systems…
• Streamline operations to complete jobs faster
• Just in time ordering – small and often
• Change your Terms & Conditions
• Use debt collection services
• Negotiate better terms
• Research higher pricing