Order Your Copy of CFO On-Call's
The Seven Key Numbers That Drive Profit & Cashflow
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 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?
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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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OUR OFFER TO BUSINESS OWNERS! If you want to see what Cashflow and Profit improvements are possible in your business, simply contact us now and we will arrange for a CFO On-Call Partner to make a time to show you - absolutely FREE of charge! NO obligation.
I repeat, almost any business regardless of size or industry, can find some level of cashflow and profit improvement. Many of our clients improve between 5% and 10% of turnover ... and it's NOT unusual. Our cost is insignificant by comparison.
Call us today, email or leave a message. There's an answering service 24/7.
Call Laurie Meakins on 1300 36 24 36 (Aus) or 0800 180 400 (NZ). |
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