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Growing the profits of SMEs...

 

The Profit Doubler System

7 small changes in your business could double profits in 12 months.

I know! ... doubling profits over 12 months sounds like a major undertaking. But, this is a proven system where making just a 10% change to 7 key areas of your business results in a positive compounding effect leading to a potential doubling of profits.

The system is focused, backed up with easy to follow numbers and designed to minimise disruption to your existing operations. Let me further encourage you by saying that, although it does take hard work, it can be much easier than you might imagine!

Who is it for?

The Profit Doubler System works for all sizes and types of enterprise - online, off-line, retail, manufacturing, product or service based businesses.

Business owners often hit a growth barrier at around the two year point. Despite early success things may become tough, overwhelming perhaps, and you find yourself spending more hours imersed in the business, resulting in a loss of focus on where the business is heading. The system brings clarity and focus back into the business.

Business Sellers / Investors . Even a small uplift in profits a year or two prior to sale could have a significant impact on final sale value of your business.

How it works

  • Month 1 Review of current products/services
  • Month 2 Benchmark key accelerators
  • Months 3-9 Implement10%+ changes to 7 key accelerators
  • Month 10 Review progress
  • Month 11 Fine tune profit plan
  • Month 12 Identify future improvements

7 Accelerator Points

  1. Leads / Traffic
  2. Opt-ins
  3. Conversion rate
  4. Items per sale
  5. Average item value
  6. Transactions per customer
  7. Profit margin

Profit Doubling Example - Show me the numbers!

See what happens if you increase each accelerator by just 10 %.

Accelerator Now   Future
1. Traffic 100000 +10% 110000
2. Opt-ins X 20.0% +10% 22%
Prospects = 20000   24200
       
3. Conversions x 20% +10% 22%
Customers = 4000   5324
       
4. Items per sale 1 +10% 1.1
5. Ave item value $100 +10% $110
6. Trans'ns per customer 1 +10% 1.1
Revenues = $400,000   $708,624
       
7. Profit Margin x 50% +10% 55%
Net Profit = $200,000   $389,743
       
Increased Profits $189,743
% increased Profits 95%

Actually +10.48% is needed for a true 100% increase in profit

Business Valuation Example

 

  Now   Future
Profit $200,000   $389,743
* Company Value Multiple
(relative to earnings)
x 4   x 4
       
Valuation $800,000   $1,558,972
       
Increase in
Company Value
$758,972

* Every sector has its own multiples for public and private company valuations.

What Next ?

If you are interested in doubling your profits contact me at colin@findandfix.co.uk

Page updated: 18 June 2015

Colin Ward MBA
Technology Entrepreneur
& Business Mentor

Passionate about helping SMEs grow. Holds an MBA underpinned with 25 years experience running and advising businesses.

 

 

A Few useful tools for businesses buliding can be found at diytoolkit.org

 

 

..... "Be Smart" - the Profit Doubler approach...