Unlock Your Business Profit – Part One
Welcome to the five numbers that all business owners need to know. This series will be separated into 3 segments.
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The ONE Number and key life indicator
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Revenue and profit
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Working capital days and solution
Today’s focus will be of identifying a number that represents the business and understanding that your business should be separate from your personal life as your health, family and relationship is equally as important.
The ONE Number
This One Number that is chosen will have a ripple effect on various aspects of your business.
What this means is that your One Number will lead into other numbers. Let me give you an example.
There are many inputs that makes up Revenue such as existing clients, average spend and number of transactions per clients.
The effectiveness of your One Number can be maximised if everyone in your business is on board. Take ‘number of days between last incident’ for accidents in the work place’ as an example. If everyone contributes, it would reduce administration time, costs for leave and insurances.
Below are ideas for different parts of your business:
Customer
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Number of days or hours from order to delivery
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Number of returned clients
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Average days turnaround time for projects
If you’re short on Leads
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Number of calls each day
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Number of meetings with clients each week
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Number of speaking engagements each month
If your cash flow is tight
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Reducing number of days between debtor follow ups
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Percentage of customers who pay up front
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Number of stock returns each month
Key Life Indicator
We have to understand that your business should be separate from your personal life as your health, family and relationship is equally as important. Finding a way to achieve the perceived work/life balance can be challenging.
Below are some examples of Key Life Indicators:
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Number of times you exercise in a week
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Number of date nights you have with your partner each month
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Number of phone calls to your relatives
There are a few ways to maintain balance for your own health and happiness.
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Make an exercise plan
Take care of your wellbeing by choosing an activity that you naturally enjoy.
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Plan meals ahead
Planning weekly family meals ahead of time and cooking at the beginning of the week not only saves time and money but is usually a lot healthier.
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Remember your passions
Whether you have your own business or are climbing the corporate ladder, it is important to keep your goals in sight as this will create meaning and purpose in your life.
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Time for the family
Take some time to check in with the family and be physically & mentally away from work distractions.
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Make time for you
You can’t look after your business, family and other people very well unless you are looking after yourself.
Over a decade Success Accounting Group has partnered and worked with over a thousand business owners and we know what key numbers to look at that can take your business to the next level of PROFIT.
So book a 15 minute Chat to review the 5 numbers of your business with our Financial Coach Lan Nguyen.
About Lan Nguyen
Lan is the Founder and Chief Strategist at Success Accounting Group, Melbourne based CA firm. In a matter of short 8 years she has built up a reputable Chartered accounting firm with 3 offices and a team of 6 professional accountants and support team members. Her mission is to provide Innovative and Strategic Financial advice to help her customers make smarter financial decisions today for a brighter future.
Success Accounting Group is for established business owners who would like help to grow a sustained business. As a business owner you understand what drives your business success with our accounting team taking care of the rest.
To see how you too can benefit from working with us, request your FREE meeting today. Enter your details in the form on the right, or phone us direct on 03 9583 0550.
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Success and Wealth
Success Accounting Group Pty Ltd
Oakleigh, VIC, 3166
