SM2.0 80/20 Principle – 16 Times More Productive
Introducing the 80/20 Principal The 80/20 Principle asserts that a minority of causes, inputs or effort usually lead to a majority of the results, outputs or rewards. Taken literally, this means that 80 percent of what you achieve in your job comes from 20 percent of the time spent. This implies that: 80% of your […]
SM1.1 Rapid Profit Increase from Price Increase
As was outlined in the introduction to our Pricing Module, even small changes in the prices of your product goes 100% to your bottom line Profit (assuming demand doesn’t change). Consider a business turning over $500,000 per year. Let us further assume that it makes a 5% profit on that, which gives it a Profit of […]
SM1.0 How 1% Price Change Gave 11% Profit Increase
Price is a major determinant of the profitability of your business! A price change of as little as 1% can often lead to profit increases of up to 11%. A consultant study across 1,200 major businesses found that a 1-2% increase in price, assuming demand remained constant, on average would have increased the company’s profit by 11%. […]
Sensitivity Analysis: Experiment with Changes to Your Business
What is sensitivity analysis? Free tool shows impact of changes on business; instantly! Use this free Business Modelling Tool to see the impact of (e.g.):percentage change in pricechange in sales revenuestaff numbers changeAccounts Payable and Receivable change and the impact on cash flowimpact of changes on profitabilitychange on business selling pricewhat revenue do you need […]
Boost Your Cash Flow, Learn Pricing Strategies and Improve Productivity
10 Ways to Improve Cashflow If you own a business and sales, or your top line, are growing at a rampant pace and you’re increasing profits each year, you’re certainly headed in the right direction. But don’t put your guard down. Even growing, profitable companies can be hit with cashflow problems if their finance, operations […]