Monitor Business Performance: Discover Your Business Trends

Two Thirds of an Iceberg is Hidden Under Water! Sadly, your accounting system is probably not making valuable information very obvious. You have to do accounts for tax and compliance purposes.You think this is just an expense you have to live with. But, properly diagnosed, these accounts can tell you much, much, more about your […]

Find Business Risk with Business DashBoard

What is Business Risk and why should you monitor with our Business DashBoards? Your Car’s Dashboard shows Progress and Warns of Looming Problems Smart Business Leaders use Business DashBoards to do the same thing 12Faces is committed to helping you achieve Sustainable Business Success.Sustainable means on-going so you need monitoring tools to check your business’s health.DashBoard is our tool to be confident you […]

Business Health Check: Get Insights with Business Analytics

Your Car’s Dashboard Shows Progress and Warns of Looming Problems Smart Business Leaders use Business Analytics for the same reason 12Faces is committed to helping you achieve Sustainable Business Success.Sustainable means on-going so you need monitoring tools to check your business’s health.We have a range of such tools you can choose from to be confident you have […]

How to Track progress with Fever Charts

Very often we would benefit from some visual method of alerting us to the fact that some process is becoming critical and needs our attention. One such visual aid is a “fever chart”. 

Gross Profit Margin Analysis Boosts Profit Explained

Gross Margin Analysis opens the door to understanding the complex interactions between Revenue, COGS (Cost of Goods Sold or Operating Expenses) and Gross Profit.  It can be hard to understand why (e.g.) Revenue is going up but Gross Profit is going down!  Gross Margin also lets you measure the operating efficiency of your business and points out which components of your COGS may be declining in efficiency.  Bottom line, an improving Gross Margin is a good sign for improving profitability in your business.  Yellow Belt

How to Improve Cashflow Acceleration

A healthy cashflow is a major contributor to your business’s ability to survive and grow. Do you want to harness the power of your cashflow to grow your business?  Are you struggling to pay bills when they fall due? Speeding up cashflow can help with both these goals. Cashflow Acceleration discusses how you can accelerate your cashflow to improve the health and growth rate of your business. Yellow Belt 

How to Benefit from Cash Conversion Cycle (CCC)

How fast can you grow your business? This depends on how well you convert your sales into cash-in-hand. Is this conversion slow? You will need cash from other sources to fund your growth in sales volume and pay expenditures. Some expenditures will be for goods and services, others for capital items. The Cash Conversion Cycle assesses how you are going. It is an important metric for fast growing businesses. Blue Belt 

Overhead Margin Analysis Explained

Overhead Margin relates to Overhead Costs, which are the costs in your business that do not change directly with a change in your Revenue and/or a change in your Cost of Goods Sold (COGS).

They include such things as:

  • Rent, insurance.
  • Interest.
  • Salaries of permanent staff.
  • Administration costs in general; telephone, office costs.
  • Some elements of the sales process that are not directly related to your Sales Revenue.

These Overhead Costs tend to grow over time and may lead to inefficiencies in your business. This is due to activities no longer being relevant to your business but remain as a cost. 12Faces has several tools for helping to remove these “barnacles” that detract from your Operating Profit. Yellow Belt

How to Use Gross Margin Analysis

Gross Margin Analysis:

  • Lets you diagnose problems caused by changes in Income and/or Variable Costs.
  • Income and Variable Costs can move in different directions, or in the same direction, at different speeds.
  • This can make it hard to work out what is causing an upturn or downturn in your business.

The analysis tips here will help make that clearer.  Yellow Belt

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