Revenue & Profit Calculator
Revenue and Profit Calculator
There are three critical parts of your business:
Cash flow
Annual Revenue, and
Profits
Without cash flow your business can’t survive. As this is such a critical part of your business, we cover your cash flow in a separate section of this site called ‘Your Cash Growth Calculator’. Equally, without profits your business can’t survive, but a lot of businesses try to make no or limited profits to stop from paying more tax. My suggestion is that you need to be ok with paying tax, but have enough cash to do that through ‘Your Cash Growth Calculator’ and really start to ramp up your profits.
The more profit your business generates the more valuable it becomes
The more profit your business generates, the more valuable it becomes to you, and to others you may want to sell it to at the end of your game called ‘build a business’. The more profitable and the more positively your business is generating cash, the more valuable it becomes. A lot of business owners we talk to are fixated on generating more and more sales (annual revenue), but if nothing is sticking, then it’s a pointless exercise to chase sales.
The Revenue and Profit Calculator allows you to calculate how much revenue, and more importantly how much profit you want, to generate in an annual year. You may have heard about market share, but I prefer wallet share ... the amount of money that ends up in your wallet!
Use the Revenue Profit Calculator to model your business as to how it could be if you changed a number of activities. Remember that ‘More Clients’ is actually an outcome of two activities (1) generating leads and (2) converting those leads into a client. So if you need more clients, then simply focus on those two activities.
Making Small Changes Across A Number Of Areas Is The Key
If you want to change your business in a massive way, then see what changing each area by 2% to 5% can do to your profitability – you will be amazed. The challenge with a number of businesses we come across is that they simply concentrate on one or two areas of their business, and as such it is difficult to increase. But if you just make small increases in all of the areas across the Revenue and Profit Calculator you will see unlimited growth.
Where To From Here
- Find and input your figures into the Revenue and Profit Calculator
- Make minor adjustments to all areas
- You may need to increase expenses / overheads if you plan to increase (a) lead generation, (b) number of times a client transacts, and (c) retention rate
- Call your coach to work out how you can get your goals immediately and over the next 12 months.
