Growing profit is normally one of the principal goals of business and we have a mass of advice to assist with this goal.
But one of our fundamental objectives is to make this available as conveniently as possible so we also collect the most relevant information into structured solutions.
We call them our Accelerator Programs as they are designed to accelerate your profit growth. You just pick your Program and we will take you through the implementation steps involved.
We have to say at the outset that every business will be different so any advice here is general in nature and should only be relied upon to craft your own approach to profit improvement. Always get appropriate professional advice for the detailed aspects of your pathway to profit.
We are nothing if not ambitious here. We aim to demonstrate how it might be possible to double your existing profit in 100 days then double it again in a year by increasing revenue!
We have developed an approach best represented in the following graphic.
It is basically a three step process:
- Work out your destination.
- Optimise what you have.
- Grow the business.
The balance of the material in the base of the pyramid above is the rest of PS's Menus and specific business management subject matter.
When setting out on any journey, one has a destination in mind.
It should be the same for your journey towards your goal of increased profits.
The goal is probably fairly simple on the face oft it but there may be a number of details that you should consider around this overall goal.
They might include:
- Attitude to risk (see Risk Management article)
- How much debt you are willing to incur to finance growth.
- The common trade-off between surrendering some short term profit to fund the growth program in the expectation of more profit later on.
- Is the profitability meant to be used to position the business for sale as better profit will mean a better price usually. Profit often drops in the short term as funds are used to promote growth so your sale might be delayed or stop short of our stage 3 - growth.
- The energy levels of yourself and your team and therefore how hard you want to push the exercise.
- The size of your business - the speed of change will usually slow down as the number of staff increase. Their minds need to be won over to the exercise and they might have different agendas to yours.
- The attitude of your superiors (if you have any) and what they will expect and tolerate.
We have a range of articles on goal setting that you can see grouped together in Goal Setting Recipe
We argue that before you try to grow your business in order to grow your profit, it makes a lot of sense to "tune" it to be operating as efficiently as possible.
If your business has any age or complexity, it will most likely have developed some less productive 'barnacles' on its operation and have a number of 'leftovers' from earlier profit drives.
Many of these will be absorbing money, management attention and probably morale.
Rather than them hanging around and diverting energy, our first step is to prune out resource wasters.
Related to that is the value of getting yourself and your team as efficient as possible so as to be able to focus on the profit drive.
We group our recommendations for this optimisation process in our Menu Double your Profit in 100 Days.
3. Go for Growth
Having tuned the engine of your business, now is the time to go for growth at the speed and direction you determined in the first (Destination) step of this process.
Going for Growth is a big topic because there are many forces and techniques that can be brought to bear.
We start out with a Menu that is really a Menu of Menus because of the huge subject area to cover. See the Double your Revenue in a Year Menu.
Degree of Difficulty
We know our audience has widely different levels of business experience and training in business management in general and some topics specifically.
The last thing we want to do is overwhelm someone just starting out in a management topic with advanced business management science.
So, throughout Profit Savvy, we classify the material by its degree of difficulty.
Once you pick your present skill level, you just need to follow the Menus and/or Tags to see material on each management topic pitched at your skill level.
Over time, your skill level in that topic will improve and you can step up to the next degree of difficulty.
We use the well know "belt" system from the martial arts.
- Yellow Belt is an entry level understanding of the topic designed to be easily understood. If you want to learn more on the particular topic, progress to higher belts in that topic area. (click for list tagged yellow)
- Blue Belts are for those either already fairly experienced in the topic area or wanting to known more. (click for list tagged blue) and
- Black Belts are masters in the topic area but, just like a martial art's master, they still need to train and they can still learn new things (click for list tagged black)
All that really remains is for you to start!
We are here to help so please provide feedback on where we can flesh out our offerings.
Also try the Q&A and comment tools on this site to see if others can help you.