Maximising Profits

Profits are like oxygen. Your business must make profits in order to survive. In the short term, you can acquire investors or borrow to maintain the business, but the only sustainable method of generating cash for you and your business is to make profits.

Cash on the table

There is more than enough cash available in the world. It is just in the wrong bank accounts! Profits are the method by which you divert cash from someone else’s account to your bank account with integrity. Basically, there is cash on the table – it is your job to maximise your share of that cash. Barnes Roffe have created a diagnostic process to review your business operations and help you identify any areas where you are putting too much cash on the table or not taking enough off.

Your business

You know your business better than anyone else. We won’t tell you how to run your business, but remember, we act for hundreds of different companies across all industry sectors and we know what has proved successful or otherwise for our clients. Through our vast experience we can help you learn from the mistakes of others and increase your profitability.

Profit formula

Business is simple, not easy, but simple. There are only three drivers to your personal profit formula:

  • Sales
  • Price
  • Costs

Doing nothing

This is not an option for any business. If you are not growing, don’t fool yourself, you will be shrinking. If you do nothing to make your business grow, be certain that your competitors will be, and over time they will eat into your share of the market.

Sales

Increasing sales is essential for the long term growth of your business. However, they must be the “right” sales. We can help you define your ‘perfect sale’ and then target your sales effort accordingly.

We will assess opportunities for you to increase sales to new customers as well as help you retain and even increase sales to existing customers.

We will help you to critically assess your current sales process so that you fully understand:

  • The life value to you of your customers
  • Why you lose customers – remember it may not be your fault
  • How much it costs you to win a new customer
  • How your market offering compares to that of your competitors

Pricing

Research consistently shows that the most profitable companies are those with a clearly defined and considered pricing strategy. So why do so many businesses let their customers dictate the price?

We will help you create a powerful pricing strategy designed to maximise your profits by considering:

  • Your place on the price to value axis
  • Your brand
  • Your price performance criteria
  • Can you differentiate your products from your competitors and from each other
  • How sensitive are your customers to price changes

Costs

Typically the first port of call for people looking to increase profits is to reduce costs. Unfortunately, it is difficult to grow a business while cutting costs and any big savings will already have been made. However by improving the efficiency and effectiveness of your processes you may be able to produce more output from the same input at a cheaper price.

No improvement is too small. If you have been operating a successful business for several years, it is likely that all the big improvements have already been made. Profit maximisation is about accumulating all the small bits of cash that are left on the table, or have fallen on the floor. If the benefit of doing something outweighs the costs, even if only slightly, then you should do it.

Let Barnes Roffe help you to critically review your profit formula and help you to maximise your profits.

Talk to Barnes Roffe today Barnes Roffe – Clever Accountants for BusinessBarnes Roffe has tried to ensure that the contents and information it provides in its website is accurate at the time of posting. Unfortunately it cannot guarantee the accuracy of contents or information contained in its pages and any person choosing to act on this information should contact a Barnes Roffe partner prior to taking any action
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