What is Business Optimisation 100?
Over time, your business will have accumulated wasteful habits, pricing and costs that will act as a drag on its Profitability; just like barnacles slow down a boat! Your goal is Sustainable Business Growth so it makes perfect sense to scrape off these “barnacles” rather than waste time and money dragging them forward. Then you can be really serious about growth with your newly streamlined business. O100 is your tool for business optimisation to get rid of any accumulated waste.
We are aiming to streamline what you have, thereby directing more money to the bottom-line Profit. This is simpler than increasing Revenue and can happen much faster.
- It would be wasteful to focus on generating more Revenue first if the business is not as efficient as possible already. That would mean missing out on maximising the Profit from the increased Revenue.
- If your business has any age and complexity, it may have developed some less productive ‘barnacles’ throughout its operation and have a number of ‘leftovers’ from earlier Profit growth drives.
- Many of these will be draining money, management attention and probably morale.
- It lets you and your team practice working together on a major project, with a business you already know, before launching out into uncharted territory to Grow Revenue and further Double Profit in the next 12 months with Grow365.
Who is Business Optimisation 100 for?
Anyone can do this at anytime of course but we think there are four most likely users:
- An existing manager of the business unit who decides it is time to do a ‘spring clean’.
- A newly promoted manager who now gets to run the business unit and would like to impress the bosses with a cleanup/makeover in the famous ‘first 90 days’ of their management reign.
- A business that has acquired another business and wants to spring clean it as part of the takeover process. This will also help to tune it for integration with the existing, parent, business
- You have decided to sell the business in the foreseeable future and want to get it looking as Profitable as possible
Is Business Optimisation 100 even possible?
The natural sceptic in us is probably a bit affronted at the thought that the business we have been running all this time is even capable of much Profit improvement; let alone a doubling.
We can’t tell you how much extra Profit you will make from following this 12Faces Campaign, every businesses circumstances will be different.
The Case Studies following will give you some idea of what might be possible.
Case Study 1
Figures for a small business.
Assumptions:
- $1 million in Revenue – improve this by 5% (5 cents for every current dollar) – not a big ask.
- $250,000 in Variable Cost – reduce by 5%.
- $580,000 in Fixed or Overhead Costs – reduce by 5%.
Profit = $170,000 – increases to $261,000 after improvements.
54% increase in Profit. Not too shabby!!
If we increase the improvements to 10% in this example, the Profit improves by 108%!
Case Study 2
Let’s use a simple hypothetical case study to demonstrate how all the steps we will cover can add up.
Assumptions:
- $1,000,000 in Revenue
- 5% Profit before Tax = $50,000.
- Costs are 95% of the sales = $950,000.
- Labour, typically 60-70% of costs = $480,000.
- Fixed costs = $235,000.
- Variable costs = $235,000.
Activity | Amount improved | Additional profit % |
Product range tune-up | $10,000 | 20% |
Location review | $5,000 | 10% |
COGS | $2,350 | 4.7% |
Fixed costs | 0 | 0% |
Labour | $30,000 | 60% |
Relieve constraint | 5,000 | 10% |
Surplus capacity | 7,650 | 15% |
Inventory tune-up | ||
Improved sales | $5,000 | 10% |
Pricing Review | $10,000 | 20% |
Totals | $75,000 | 150% |
From this realistic example, Profit went up by $75,000 which is a 150% improvement over the $50,000 present Profit.
Did any of these steps seem particularly difficult?
How Much Time Will it Take?
We are all short of time and always looking for the priority for what time we do have.
The good news is this – Optimise100 is entirely self paced, it can take as much or as little time as you like.
The actual sequence of events is not too important either. We actually encourage you to do the bits you like first so you start to build up a bit of interest and speed.
You do this at your own speed but, given the goal is more Profit, it is a process that probably is worth your attention.
A by-product of Optimise100 is that it is laser focused on reducing the problem areas in your business.
These are the ones you are always fire-fighting, using Optimise100 to get rid of them automatically gives you more time in your life.
Included in the Business Optimisation 100 Campaign
Recommended Prerequisite:
We encourage Clients to have a recent TrendBoard run as a diagnostic of their present financial situation.
If you do not have one, we strongly recommend that you do.
The TrendBoard fee is in addition to the Campaign fee below.
Go to the signup page: TrendBoard Signup
to read more about the TrendBoard and download the Business Secrets Case Study.
The Optimise100 Campaign comprises:
- A planning tool and savings estimator: this outlines the components of your business that will benefit greatly from Optimisation.
- Access to three, self-paced learning, Skill Modules of your choice, included in the fee. Additional Skill Modules can be purchased at $200 each.
- A 1 hour person-to-person session at the start of each month and a wrap up session at the end (4 sessions in total).
Additional person-to-person sessions can be purchased for $300 per hour or part thereof. - Free Help Desk assistance of a general nature.
The Optimise100 Campaign contains:
Self-paced planning materials, 3 self-paced learning Skill Modules of your choice and 4 separate, 1 hour long, person-to-person progress review sessions
Ready to give it a shot?
Go to the signup page now:
Step Through
We have arranged the items in the Campaign in the order that we feel flows the best.
You can of course change the order in which you apply these tasks to suit your circumstances but quite often a method of improvement is ideally preceded by some earlier step.
This Campaign is about quick ways to improve the Profit of your existing business.
Optimise100 is divided into several articles, these are:
- C2.2 Introduction to Optimise100
- C2.3 Getting Ready – set your Optimise100 goal.
- C2.4 Cost Reduction Opportunities – which costs to target.
- C2.5 Increase Revenue Opportunities – increase throughput, improve cashflow, increase sales revenue.
- C2.6 Advanced Business Growth Techniques – Blue Belt article – time management, change management, continuous improvement, Kanbans to regulate flow.
- C2.7 Using the Optimise100 Planning Spreadsheet – worksheet for all the things you might work on and their expected payoffs.
More on 12Faces
12faces.business is a Not-For-Profit that distills the best available Profit growth tips from leading authors and presents it to you in an easily digested format.
Save the expense of buying books and the huge amount of time required to wade through them.
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