We often say "what you measure you can manage" and "what gets managed gets done".
When it comes to achieving greater profitability, truer words cannot be found. The fourth way of growing a business, which is improving the effectiveness of the things that you do, is a vital part of assisting you to better manage the results.
We often talk about the importance of focusing your profit improvement strategies into some key areas. They are to increase:
a) The number of desirable customers
b) The number of times each customer makes a purchase, and
c) The average amount they spend on each purchase
These are the major areas that can be managed by measuring their impact on overall profits and the good news is they can be measured with relative ease.
Identify your Critical Success Factors (CSF's) by asking three questions:
Once these questions are answered you should then plan on how you can monitor the effectiveness. For example recognising your Key Performance Indicators (KPI's) and placing more or less emphasis on each area depending on the trend.
At the end of the day a profit improvement plan is only effective if your return on investment (ROI), your net profit margin and your bank balance are improved simultaneously. Constant review and management of your CSF's is the key to sustainable profit and ROI over the long term.
And that's exactly what our Financial Performance Reviews and Business Health Checks are designed to help you with. For more information call us on 1300 791 600 or email Mike Reddy at firstname.lastname@example.org but we are willing to prepare the first 12 with our compliments. We will analyse your last three years performance and you will receive a financial review including a written report worth $330 (including GST). Just include the words "Jan newsletter offer" in the subject line, and leave the rest to us.