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The multi-year analysis calculator was created as a result of an experience in working with a business owner. Over a period of several years, the sales and profit of the business had increased. As they should be, the owner was very proud of their efforts. However, when we took a look at how that growth had occurred there were several points that stood out. The first was that the gross margin had wavered over the years and in the most profitable year they did not have their best gross margin. When we looked at the groups of operating expenses, advertising, occupancy and payroll, as well as operating expenses overall, we saw there were fluctuations. With the fluctuation in advertising expense as a percentage of sales, you could see that an advertising budget was not utilized. You could see with payroll as the sales increased and decreased over the same four years, that with the addition of a new employee as sales increased, there were not fewer employees in the years with lesser sales. Overall the owner was pleased with their efforts. However, if controls of margins and expenses, the net profit would have been 1.5 times what it actually was in the best year. This calculator helps you to detect those patterns.
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OCTOBER 2026
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With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.
Small Business
Healthy, Wealthy, and Wise. It may be the last part of a saying dealing with going to bed early and getting up early. It is also the title of this month's advisory. We are going to look at five tests you can perform on your business along with several calculations you can perform on your business to determine how well the business is performing.
Small Business
Continually, I am baffled by small businesses that fail to ask for customers for their business. The example for October is service businesses that deal with their customers on a monthly, quarterly, semi-annual, or annual business.
I don't understand why they tell customers to call when they are ready for the next service.
It is just a tool. We are talking about money. The October article tells the story of several small businesses that make a big difference in their community. These are heart warming stories of making money and using that money in some unique ways.
How about an uplifting book to start the last quarter of the year? Big Magic: Creative Living Beyond Fear by Elizabeth Gilbert can give you that boost in both your personal life and in your business.
All this plus the Internet Tool for Your Business and a staff incentive idea for your business.
