Doubling Net Profit

- Ian Ash

1

Taking your business from

STRIVING to THRIVING

Established in November 2009

VISION: Creating solutions that enable businesses to

perform beyond their expectations.

MISSION: To provide organisational mentoring and business

advisory services that transform clients’ business

to achieve sustained performance.

Testimonials available at http://orgmentbusinesssolutions.com.au/

2

Business Overview

• Former Managing Director of a Boeing subsidiary

• Senior management roles in a variety of SMEs

• Business coach and advisor across multiple areas

• President of the Emerald Business Group

• Chair of Casey Cardinia Shire Business Group

• Former Judge for Casey Cardinia Shire Business Awards

• Write business articles for Signpost magazine

• Board member of the Hampton Park Community House

• Accredited Associate of the Institute for Independent Business

3

Personal Overview

• Business Strategy and Strategic Planning• Business Excellence• Goal and Objective Setting• Leadership Skills• Client Engagement Model (Sales preparation)• Creating Delighted Customers• Effective Communication• Improving Productivity• Time Management• HR Fundamentals• Effective Recruitment and Interviewing Skills• Staff Development• Staff Retention and Engagement• Performance Management• Project Management Fundamentals• Practical Project Management• Advanced Project Management • Risk Mitigation through Succession Planning

5

Training Courses Available

What are the Major Challenges facing SMEs?

6

1. CEO Time-Poor

2. Lack of Business Strategy

3. Cash-flow / Poor Sales / Profitability

4. Staff Issues – quality, engagement etc

5. Growth / Organisational Structure

Top 5 SME Issues

7

How to double your Net Profit

8

Sales $$$

COGS $$$

Expenses $$$

“Turnover is Vanity

Profit is Sanity

Cash is Reality”

-Anonymous

How to double your Net Profit

9

Simple Profit and Loss

Profit / Loss 101

SALES (REVENUE): $S

COST OF GOODS SOLD: $C________________________________

GROSS PROFIT ($GP): $S - $C

EXPENSES: $E________________________________

NET PROFIT ($NP): $GP - $E10

# NEW CUSTOMERS + # EXISTING CUSTOMERS = TOTAL # CUSTOMERS

AVERAGE SALE PER CUSTOMER = TOTAL SALES / TOTAL # CUSTOMERS

20 Leads x 60% Conversion Rate = 12 New Customers

12 New Customers + 30 Existing Customers = 42 Customers

If Total Sales = $84,000 and 42 customers, then Average Sale per Customer = $84,000 / 42 =

$2,000

How to double your Net Profit

# NEW CUSTOMERS = # LEADS x SALES CONVERSION RATE

11

Profit Equation Worksheet Example.xlsx

How to double your Net Profit

12

How to double Net Profit

13

Thank you!

OUR VISION

Creating solutions that enable

businesses to perform beyond their

expectations.

www.OrgMentBusinessSolutions.com.au15