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People Profits & Palestine



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  • 1. People Profits & Palestine
  • 2. We love our Olive Tree
    • First 5 years:
    love + constant care + proper irrigation + fertilisation + pruning to ensure the olive tree survives hundreds if not thousands of years
    • Who said your business is different from our precious Olive Tree?
    • 3. If you take care of Profits, People & Palestine your “olive tree” will survive.
  • Pricing to boost your profits
    • What is within your control
    • 4. Skills audit.
    • 5. Profit boosting
    • 6. Increase Sales
    • 7. Budget
    • 8. Cash Flow management
    • 9. What’s in a mark-up?
    • 10. Leverage + Value to grow your business
  • the honest truth:
    why business fails & how you can succeed
    • 81% of variables are within your control
    • 11. Let’s leave the economy, staffing and unions aside!
  • Increase chance of success
    You can’t be good in everything – Know thyself:
    Technical/professionals not necessarily business people.
    To succeed, you need to ensure either you/your team have:
    • Management Skills
    • 12. Financial Skills
    • 13. Marketing Skills
    • 14. Sales Skills
    • 15. Operational Skills
    Need to do a Skills Audit
  • 16. we need to eat!
  • 17.
  • 18. My Dad – Victor
    Dedicated husband
    Loving father
    Entrepreneur – gets seizures
    Great salesman – always looking for needs to fill
    Loves his business & his friends
    Understands people needs
    But a lousy financial manager!
  • 19. My mum - Souad
    Super mum – 5 kids (3 girls & 2 boys) in 6 years
    Relationship builder
    Wise financial manager
    Business in her blood
  • 20. Everything happened to my family in 1975!
    Eli Mahlab – General manager of Engel bakery Jerusalem.
    Eli saved my family
  • 21. You need a financial manager
  • 22. You need to keep your records
  • 23.
  • 24. Know your margin
  • 25. The purpose of a business is: to make money
    It does this when it simultaneously increases:
    • Net Profit
    • 26. Return on Investment
    • 27. Cash Flow
    Distinguish between business and service for the greater good.
  • 28. Net Profit Is . . .
    • What remains after you deduct all expenses from the revenue your business generates.
    • 29. It’s important to understand that profit and cash flow are two different things.
  • Cash Flow Is . .
    The cash that flows into your business from all sources after deducting the cash that flows out of the business.
    A business can never grow faster than its cash flow allows.
    If you try to grow a business faster than this, it will fail.
  • 30. The Cash Flow Cycle
    Goods are purchased from a supplier
    who gives credit.
    Cash out to pay creditors.
    The goods go into inventory for resale.
    The goods are sold to customers, some of whom
    pay at the time of sale and the
    others receive credit.
    Cash in from cash sales & accounts receivables
    The amounts owed by credit customers are
    recorded as accounts receivable, which will be paid in due course.
    Cash out to pay other expenses.
  • 31. Your Cash Flow Projection
    You must prepare a Cash Flow Projection for 12 months in advance.
    Then you must monitor it monthly and roll it over each quarter.
    Your cash flow projection is your main financial management tool.
  • 32. How to Project & Monitor Your Business
    • Look at your cost structure.
    • 33. Determine what profit you require.
    • 34. Calculate the sales you need to achieve this.
    • 35. Test the validity of this sales volume.
    • 36. Determine what resources are required to support sales.
    • 37. Prepare a Cash Flow Projection to ensure finance is OK.
    • 38. Establish KPIs to monitor your progress.
  • 4 Ways to Grow
    Increase the number of customers (of the type you want).
    Increase the transaction frequency
    Increase the transaction value of each sale
    Increase the effectiveness of each sale
  • 39. To Increase Profit
    You must increase revenue
    You must reduce expenses
    A combination of the two
  • 40. Work on the price
    You can increase revenue by increasing price.
    Provided that any decline in volume does not offset the price increase.
    Or you can increase revenue by decreasing price.
    Provided that the increase in volume is sufficient to offset the reduction in margin.
  • 41. You can increase profit by increasing volume.
    Provided that price remains constant so that the increase in volume translates in higher gross profit.
    Or you can increase profit by decreasing volume.
    Provided that the saving in costs outweighs the reduction in gross profit.
    Work on Volume
  • 42. Work on Fixed Expenses
    You can increase profit by reducing fixed expenses.
    Provided that sales revenue does not decline or if it does, the reduction in revenue is less than the saving in fixed expenses.
    Or you can increase profit by increasing fixed expenses.
    Provided that there is a resulting increase in gross profit from greater market share or higher gross margin.
  • 43. The Components of Revenue
    The number of customers you start with
    Those that you lose each year
    Those you pick up
    Your total number of customers
    Multiplied by
    The number of times they deal with you each year
    The number of transactions
    Multiplied by
    The average value of each sale
    Your Total Revenue
  • 44. To Increase Your Total Revenue You Must
    Get more customers
    Stay with you and come back more often
    Spend more with you each time
    and / or
    Recommend you to their friends and associates
  • 45. Cost Behavior & Activity-Based Costing
    There are 3 types of costs
    Fixed Costs
    Variable Costs
    Activity-Based Costs
  • 46. These are costs independent of the dollar value of sales and the level of activity.
    They are usually associated with the physical capacity of the business to provide its service to customers.
    Fixed Costs
  • 47. These costs vary directly with sales revenue.
    In other words, when sales rise or fall, they rise and fall in exactly the same proportion.
    Variable Costs
  • 48. Work on Variable Expenses
    You can increase profit by decreasing variable or activity related expenses.
    Provided that there is no change in product or service quality that could have a consequential effect on sales volume.
    Or you can increase profit by increasing variable or activity related expenses.
    Provided that the improvement in product or service quality allows you to win greater market share or premium price.
  • 49. These costs are driven by activities undertaken in the business.
    On the surface, they usually appear to be fixed costs, but in fact they are activity-related.
    Activity Costs
  • 50. If you want to manage a business, you must manage the activities that make up the business.
    To manage these activities, you must first be able to measure them because—what gets measured gets managed.
  • 51. The difference between big & small business:
    1.Leverage - to create new customers and make sure they keep coming back
    2. Value – what you can provide that solves a real need and cannot be duplicated
  • 52. Leverage
    Get CLEAR on your business model:
    Employees vs. contractors
  • 53. Creating Value
    Creating value builds loyalty;
    Loyalty builds growth, profit and even more value;
    Profit is indispensable but it is a consequence of value-creation
  • 54. Customers buy
    they perceive
  • 55. Fundamental truths
    1. Why is your service/product different? Why is it better? It's always thelittle things that make a huge difference
    2. It's all about SYSTEMS - you systematise the 90% so that you can humanise the 10%
    3. Ways to dazzle the customer. Provide something different from other businesses
  • 56. The aim now must NOT be to satisfy the client. The aim must be to DAZZLE them - to be MEMORABLE