|
|
|
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.
PROFITS PLUS, FOUNDER OF...
©1998-2026 Profits Plus Solutions, Inc. |
JUNE 2026
|
|||
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
Marketing talks about finding your target customer. Unfortunately, those customers are not wearing a shirt with a bullseye on them to help you make that determination. The June Small Business Advisory offers an alternative method for understanding where your customer lives.
Small Business
It is countdown to the start of the 24th Independent Retailer Month beginning July 1. We work to promote the celebration from a different prospective; that of telling the public of the benefits they receive because they shop at a locally owned independent retailer. We also share reseach that shows the many positive feelings that consumers have about locally owned independent retailers and why they prefer to shop with you.
Remeber Struther Martin in Cool Hand Luke as he said, "What we have here is a failure to communicate"?
We are going to apply that expression to the software you use in your business. Are you getting what you need from that software?
Think of how Harley Davidson, Apple, and Campbell's Soup are perceived. Each have a very devout following. We call that cult branding. This month's book we review is, "The Power of Cult Branding", by B.J. Bueno.
All this plus the Internet Tool for Your Business and a staff incentive idea for your business.
