There are 5 key drivers of profit and only 5!
- Improved customer acquisition,
- Reduced customer losses,
- Increasing the frequency of sales
- Increasing the average value of each sale
- Improving margins through better pricing.
There is a 6th, which is a focus on cost reduction, but in our experience there is little to be gained in the long term with a focus on cutting costs.
We will work with you to understand the financial dynamics of these issues on your business, i.e. which area has the biggest impact for the effort and costs expended? Once a clear focus is agreed, we then work on established techniques and strategies to improve the business’ performance in these critical areas.
Many businesses fall into the trap of believing that scale will drive profit increases, i.e. ‘bigger is better’, when the opposite is often the case. Profits grow by focusing on the key profit drivers with a structure and disciplined approach to the changes needed.
We will meet any business to explore the 5 ways to grow their business using our simple modelling tool, and then consider whether a project to make the proposed changes would work for them. More often than not our fees are payable based on the overall success of the project, so we take the risk.