Increase Profit Software Designed For Increasing Profits for Business and in turn Business Value.

Every business owner would like to ‘ Increase Profit‘ and I often get asked by small business owners ‘How do I grow my business?’ and ‘How do I increase business value?’

Normally increased profits go hand-in-hand with higher business value, as a more profitable business becomes much more desirable. However, before a company can begin increasing profits the owners need to identify how they are going to do it.

With this in mind Bowraven’s Profit Increase Software is designed to identify ways to bring in extra revenues, increase profit margins and to extract additional revenues from existing customers, instead of what most businesses do, which is to focus on getting new customers.

Understanding the ’7 Ways to Grow a Business’ and on knowing how to identify Key Performance Indicators (KPI’s) are the keys to business success. When you invest in Profit Increase Software the accompanying book explains the 7-ways to grow any business and will help you to understand Key Performance Indicators, which are measures commonly used to help an organisation define and evaluate how successful it is.

Business is about investing and getting a return on that investment. Any business that has invested in and used Increase Profit Software has had that investment returned in multiples of hundreds, but more likely by thousand’s of per cent. Increase Profit Software identifies the areas of profit improvement and targets the 7 Ways to Grow Your Business.

Once these have been identified you can focus on how to increase profits and on KPI Measurement and then on KPI performance. Increase Profit Software is designed to identify the areas of your business that are sensitive to adjustment and hence key to growing your business and its profitability. Increased profits combined with excellent cash flow will in turn increase cash in the bank.

Key Performance Indicators (KPI) are financial and non-financial measures used to help a business define and evaluate how successful it is and are used to monitor how the organisation is doing.

Another term for KPIs is Key Success Indicators (KSI) and any business that uses KPIs is one that certainly has an advantage over businesses that don’t. What you measure you can manage and each business needs to choose which KPIs are key to the performance of the business and those performance indicators that will have a major impact on the business if they are improved upon.

So what exactly is a KPI – the best way to answer this is by way of an example:

Client Conversion KPI

A KPI that is key to any business is it’s conversion of enquiries into actual clients, so for example if you are currently getting say 30 enquiries per month and you convert 10 of those enquiries into clients, then your KPI is 10 divided by 30, which equals 33.33%.

By having this percentage you now have a target to beat, but more importantly, by acknowledging your conversion rate as being 33.33% you can take steps to look at why it is this low and take action to make improvements.

A first step might be to make contact with the 20 out of 30 enquirers that do not become clients and ask them why this is. By asking your potential clients you will find out what it is you can do to improve upon this KPI. By taking action you will get more clients from those that enquire about your products or services and improve your Client Conversion KPI.

Average Revenue per Client KPI

Another example and also one that is both relevant and key to all businesses is the Average Revenue per Client KPI. Let us assume that you presently have an annual turnover of £550,000 and on average you had say 2,500 clients in the same year. Your Average Client Sale is £550,000 divided by 2,500, which equals £220, which represents your Average Revenue Per Customer KPI.

As with the first example, once you know what the average spend of your clients is you are able to address ways in which you can increase their spend, thereby Increase Business Profits.

There are KPI’s that are non-revenue related, for example:

Employee Retention KPI

If a business has a high employee-turnover this will be very costly to the organisation. Therefore, if you can keep your employees for longer periods and thereby reduced employee-turnover you will drive down costs and save time, by avoiding unnecessary interview and training time involved in replacing every new employee.

To get your Employee Retention KPI you take the number of employees that you lost over a given period (lets say you lost 5 employees over a 12-month period) and divide this by your total employees over the same period (let’s say that this was 20) therefore, your KPI in this instance would be 25%.

Once you have your Employee Retention KPI you can take the necessary steps to change this and make improvements and one such step would be to carry out Employee Exit Interviews and ask them for reasons why they are leaving your organisation. By performing Employee Exit Interviews you will discover a lot about why your staff are leaving you and then take steps to reduce this KPI and save the company money in the process.

So to begin on the road of business success you need to start Developing key performance indicators.