How you can work out exactly what sales will guarantee your business is sustainable
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The document discusses the importance of determining the right sales volume for business sustainability, emphasizing the relationship between sales and fixed administrative expenses. It introduces the concept of 'transaction flow' as a measure to ensure sufficient sales volume without evaluating profit margins. The document provides actionable steps to either decrease administrative costs or increase sales to meet financial targets.
How you can work out exactly what sales will guarantee your business is sustainable
- 1. How you can work out EXACTLY what sales will guarantee your business is sustainable It may be closer than you think! © Copyright One Sherpa Pty Ltd 2010
- 2. PROBLEM #1 Are you struggling to get enough sales in your business? © Copyright One Sherpa Pty Ltd 2010
- 3. PROBLEM #2 Are you unsure about how many sales are enough for your business? © Copyright One Sherpa Pty Ltd 2010
- 4. PROBLEM #3 Do you know the right number that can make you relax? © Copyright One Sherpa Pty Ltd 2010
- 5. PROBLEM #4 Are you continually worried that no matter how hard you try there will never be enough sales in your business? © Copyright One Sherpa Pty Ltd 2010
- 6. Would you like to know one simple measure that would give you the right number to aim for? © Copyright One Sherpa Pty Ltd 2010
- 7. There is a relationship between the sales you make and the amount of fixed expenses in your business © Copyright One Sherpa Pty Ltd 2010
- 8. In simple terms you will find most fixed expenses in an area we call administrative expenses © Copyright One Sherpa Pty Ltd 2010
- 9. Over time we have watched hundreds of businesses fail when the administrative expenses are too high compared to the sales in the business © Copyright One Sherpa Pty Ltd 2010
- 10. PROBLEM #1 Has a measure which can tell you exactly whether you have enough sales and how many you need to aim for © Copyright One Sherpa Pty Ltd 2010
- 11. This measure is called Transaction Flow This measure makes sure you are bringing in the right volume of sales for your business © Copyright One Sherpa Pty Ltd 2010
- 12. This measure will NOT check the margin you are making on those sales © Copyright One Sherpa Pty Ltd 2010
- 13. BUT it will help you with the right volume of sales © Copyright One Sherpa Pty Ltd 2010
- 14. If you are concerned about your margin and profits then refer to the sessions on Customer Value © Copyright One Sherpa Pty Ltd 2010
- 15. Let me show you how to check your Transaction Flow in One Minute Business Checkup © Copyright One Sherpa Pty Ltd 2010
- 16. PROBLEM #3 © Copyright One Sherpa Pty Ltd 2010
- 17. PROBLEM #3 © Copyright One Sherpa Pty Ltd 2010
- 18. PROBLEM #3 © Copyright One Sherpa Pty Ltd 2010
- 19. We can solve this problem using One Minute Business Checkup in two ways © Copyright One Sherpa Pty Ltd 2010
- 20. 1. Decrease the Administrative Expenses © Copyright One Sherpa Pty Ltd 2010
- 21. PROBLEM #3 Subtract $30,000 from Costs © Copyright One Sherpa Pty Ltd 2010
- 22. 2. Increase the sales © Copyright One Sherpa Pty Ltd 2010
- 23. Let’s calculate how many more sales we need to ensure we have the correct volume of sales Administration Expenses $120,000 To ensure these are no more than 12% Divide the costs by 0.12 New sales figure $120,000/0.12 $1,000,000 © Copyright One Sherpa Pty Ltd 2010
- 24. PROBLEM #3 Add $200,000 to the sales and $160,00 to Other Costs © Copyright One Sherpa Pty Ltd 2010
- 25. Checkout your own information now. © Copyright One Sherpa Pty Ltd 2010
- 26. Make sure you have the right volume of sales flowing through your business © Copyright One Sherpa Pty Ltd 2010
- 27. Go to www.oneminutebusinesscheckup.com and make sure you’re aiming for the right level of sales TODAY © Copyright One Sherpa Pty Ltd 2010