Profits create cash which is the lifeblood of every business, so maximising profit is critical to all businesses. The visibility, quality and sustainably of profits are also likely to be the key drivers in determining the value of your business.
A realistic and deliverable profit growth strategy, together with a clear strategy and vision, will maximise the opportunity of your business in its respective market. It will also determine the capital required to support the growth and identify the point at which profitability and return on capital employed is maximised.
A well planned and executable profit growth strategy will need to incorporate a thorough review of internal and external factors including:
- Growth through new customers and markets, products & services, channels to market, and technology and digital strategies.
- Operational improvements and efficiencies through technology, systems and well thought through end-to-end customer experiences.
- Maximising selling prices and margins, exploiting full potential within the market.
- Controlling costs and critically reviewing and challenging each and every cost heading. Whilst many fall into the habit of ‘costs reduce tax’ never forget that they also suppress visibility of underlying profitability and value of the business.
In SWG’s experience, businesses with three year rolling profit growth plans consistently out-perform businesses with no business planning process. Generating higher profits and greater value for the business.
SWG Capital 