The ‘One Number’ approach to transforming the profitability of your business
This is all about how the numbers in a business may be used to inform the management decision making that leads to increased profitability.
The ‘One Number’ approach recognises that there is a limitation that will inhibit growth in every type of business. Correctly identifying this limitation and designing the business around it can be the key to dramatically improving profitability whilst reducing pressure on resources and then allowing sales to be improved.
It is based upon and extends the original work of Brian Warnes. He was the architect of the concept, which connects the ‘Critical Resource Limitation’ to the financial drivers of a business through the break-even point: which is that sales turnover figure that will give a profit that exactly balances the overhead expenditure.
Understanding the ‘One Number’ target that will deliver the planned profitability informs sales and marketing by highlighting those product and customer combinations that will maximise the value added from sales and operational constraints.
Price flexing to win deals that give the best possible return for the business resources always results in a rapid and dramatic improvement in profitability whilst simultaneously ‘relaxing’ operations and releasing them from the ‘Busy fools’ treadmill.
The technique has never failed to increase the bottom line profitability and sales of any business where it has been fully applied.
A half day workshop is illustrated with real life examples. This is a lively and interactive workshop where participants will gain a thorough understanding of how ‘One-number’ technique is derived from company accounts and operational constraints to influence pricing policy and the way the business sells. Everyone will have the opportunity to apply the techniques to several company examples including their own.
The workshop will look at:
- The break-even point
- True overhead
- Business crash risk
- Critical resource limitation concept
- Value added concept
- Dynamic pricing
- Tracking tools
- Transformation steps
- Improvement ideas to take away
- A thorough understanding of how ‘One-number’ technique is derived from company accounts and operational constraints to influence pricing policy and the way the business sells.
- A ‘Profit Builder’ worksheet completed for their own company that gives a clear insight into what needs to be done in the business to improve profitability and sales when they leave the session.
- Clear follow up actions and plenty of material for subsequent one-to-ones and group work.
- A copy of the presentation, including sample calculations and key action points will be provided along with a copy of ‘Boosting Sales: increasing profits without breaking the bank’ where applicable.