Order Your Copy of The 7 Key Numbers Book
The secret to business improvement is NOT just about selling more, it's understanding what are the "Seven Key Numbers that drive Profit and Cashflow" - once the sale is made. We at CFO On-Call, can show almost any business owner, how to make a dramatic cash and profit improvement, like you'll read below. There is an example in the book where one business achieved $100,113 improvement in cashflow and $60,383 in profit - without making ONE EXTRA DOLLAR in sales - or delaying payment to suppliers!
How then was it done for this business - and for hundreds of customers like them?
Step 1: Once we had a look at their most recent Financials, (Profit and Loss & Balance Sheet), we could quickly isolate the "Seven Key Numbers".Step 2: We use "what-if" thinking and lightning-quick software to calculate the results. e.g. We would "what-if" the best options to suit that business and say, "What if we improved this number by 2%, or that number by 4%", then calculate the saving.Step 3: In the case of this business, we agreed to make the following changes to just five of the "Seven Key Numbers" in his business. They were:
To reduce the Cost of Goods Sold . We targeted a 1% reduction. That added $9,872 to the cashflow and the bottom line.
Make a small reduction in Overheads . That improved cashflow and profit by $19,286.
Improve the Accounts Collections. (Called Debtor Days .) He was too easy on his customers. We improved this by 11 days, which improved cashflow by $32,275.
He needed a review of Stock /Inventory holding. We agreed a reduction of 10 days. That improved cashflow by $20,557.
Now the trickiest one. He felt we couldn't Increase Prices because his was a competitive industry. We eventually agreed he hadn't increased prices in a while and that a 2% average was reasonable. That added $18,321.
And the result is then accurately calculated. It's a massive $100,311 in improved cashflow over the year and $60,383 in profit!
Learn more when you read the Seven Key Numbers that Drive Profit & Cashflow .
To order the booklet please fill out the form below.
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