People Profits & Palestine<br />
We love our Olive Tree <br /><ul><li>First 5 years: </li></ul>love + constant care + proper irrigation + fertilisation + p...
 If you take care of Profits, People & Palestine your “olive tree” will survive. </li></li></ul><li>Pricing to boost your ...
 Skills audit.
 Profit boosting
 Increase Sales
  Budget
 Cash Flow management
 What’s in a mark-up?
 Leverage + Value to grow your business</li></li></ul><li>                      the honest truth: <br />why business fails...
 Let’s leave the economy, staffing and unions aside!</li></li></ul><li>Increase chance of success<br />You can’t be good i...
 Financial Skills
 Marketing Skills
 Sales Skills
 Operational Skills</li></ul>Need to do a Skills Audit<br />
we need to eat!<br />
My Dad – Victor <br />Dedicated husband<br />Loving father<br />Entrepreneur – gets seizures<br />Great salesman – always ...
My mum - Souad<br />Super mum – 5 kids (3 girls & 2 boys) in 6 years<br />Diplomat<br />Relationship builder<br />Wise fin...
Everything happened to my family in 1975!<br />Eli Mahlab – General manager of Engel bakery Jerusalem. <br />Eli saved my ...
        You need a financial manager<br />
You need to keep your records<br />
Know your margin<br />
The purpose of a business is: to make money<br />It does this when it simultaneously increases:<br /><ul><li> Net Profit
 Return on Investment
 Cash Flow</li></ul>Distinguish between business and service for the greater good.<br />
Net Profit Is . . .<br /><ul><li>What remains after you deduct all expenses from the revenue your business generates.
It’s important to understand that profit and cash flow are two different things.</li></li></ul><li>Cash Flow Is . . <br />...
The Cash Flow Cycle<br />Goods are purchased from a supplier <br />who gives credit.<br />Cash out to pay creditors.<br />...
Your Cash Flow Projection<br />You must prepare a Cash Flow Projection for 12 months in advance.<br />Then you must monito...
How to Project & Monitor Your Business<br /><ul><li>Look at your cost structure.
Determine what profit you require.
Calculate the sales you need to achieve this.
Test the validity of this sales volume.
Determine what resources are required to support sales.
Prepare a Cash Flow Projection to ensure finance is OK.
Establish KPIs to monitor your progress.</li></li></ul><li>4 Ways to Grow<br />1<br />Increase the number of customers (of...
To Increase Profit<br />You must increase revenue<br />or<br />You must reduce expenses<br />or<br />A combination of the ...
Work on the price<br />You can increase revenue by increasing price.<br />Provided that any decline in volume does not off...
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People Profits & Palestine

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People Profits & Palestine

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

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