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Grow Your Own Business Demo

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The example below shows that small changes can have a huge impact on a business’ profit potential. In this example a 1% improvement in key areas results in an increase in profits of £45,355. That is an increase of over 90%. If you would like to explore the profit potential within your business please contact us on 0141 332 6331, or email mail@russell-russell.co.uk, to arrange a free consultation.

Current Change 1% Improvement
1 – Average Transaction Value
Average sales price per transaction 300.00 1.00% 303.00
Variable costs
200.00

1.00%
198.00

Gross Profit per transaction
100.00


105.00


Gross profit margin 33.33% 34.65%
2 – Number of customers
Opening customers 500 500
New customers- opening balance 50 11.00% 55
Lost business (50)


9.00%


(45)


Closing customers 500


2.00%


510


3 – Frequency of transactions per customer 10


1.00%


10.10


2 & 3 = Total Transaction Volume 5,000



5,151



4 – Productivity
Admin and Finance expenses 450,000



1.00%



445,000


Summary income statement Current 1% Improvement
Turnover 1,500,000 1,560,753
Cost of Sales (1,000,000)


(1,019,898)

Grow Profit 500,000 540,855
Admin and Finance expenses (450,000)


(445,500)


Net profit / (loss) before tax and depreciation 50,000



95,355



Increase in profits before tax and deprecation £45,355