The benefits of a profit improvement programme
A profit improvement programme enables business owners to move forward armed with information on performance that helps them to make crucial decisions on timing and direction.
This contrasts with annual accounts which tell you how the business did in the previous year. Although important lessons can be learned from examining what went well and what didn’t, understanding what lies ahead is essential to sound strategic planning.
To this end, companies must set targets and objectives that are reflected in budgets and detailed growth programmes. As a result, owners can calibrate their actual performance against their targets and adjust their activities accordingly.
Professional advisers can work with owners to review cash and profits in their business, taking into account each operational component and assessing its implications for the company’s progress.
Benchmarking information can be produced that enables owners to compare their performance with competitors, as well as providing information on the value being added to the business on an annual basis.
Integral to the process is an in-depth look at key factors, including customers’ profiles, sales levels and prices, overheads, profits and tax costs. In addition, a profit improvement programme will analyse broader issues, such as productivity, competiveness and flexibility.
In this way, opportunities can be grasped more effectively and challenges met with the confidence of foresight.
For more information please contact Damian Walmsley on 01772 821021.