PROFIT IMPROVEMENT OPPORTUNITIES for SMALL BUSINESS MANAGERS

1
PROFIT IMPROVEMENT OPPORTUNITIES for SMALL
BUSINESS MANAGERS
BA 4452
2
How do you improve profits

• METODOLOGY

3
What is methodology?

• 2 ile 9 arasinda aklinizdan bir sayi tutun
• Bu sayisi 9 ile çarpin
• Çikan sayinin iki hanesini birbiri ile toplatin
  25 ise 257 gibi
• Buldugunuz sayidan 5 çikartin
• Kalan sayi alfabenin kaçinci harfi?

4
1 ise A 2 ise B 3 ise C 4 ise Ç 5 ise
D 6 ise E 7 ise F 8 ise G 9 ise H
5
MEYVENIZ ?
NAR
6
3 OPSTICALS

• Negative Attitude
• Confirmation
• Justification

7
3 CONDITIONS

• TO KNOW
• TO WANT
• TO IMPLEMENT

8
McKinsey Research Feb 2007

• Where does the success of the company come from?
• There is a huge relationship between management
  and profitability?
• 52 of seccess comes from management, and 48 of
  success cames from outside effects

9
SUCCESSFUL COMPANY

• Market Share
• Improvement of sales
• Improvement of profit
• Production effectiveness
• Market Value

10
Where to start profit improvement?
F1 F2 F3 F4 F5 F6 Comapany Performance Performance increase
1,00 1,00 1,00 1,00 1,00 1,00 1,00  
1,00 2,00 1,00 1,00 1,00 1,00 2,00 200
1,20 1,20 1,20 1,20 1,20 1,20 2,99 299
11
F1 F2 ... F99 F100 Performance increase
1,00 1,00 1,00 1,00 1,00  
1,00 2,00 ... ... 1,00 1,00 2,00 200
1,02 1,02 ... ... 1,02 1,02 7,24 624
1,20 1,20 ... ... 1,20 1,20 82.817.975
12
IS GROWTH IMPORTANT FOR PROFITABILTY ?
PROFIT ANALYSIS PROFIT ANALYSIS              

1. Situation
  A A B B C C   Total
Sales 8.000 8.000 6.000 6.000 5.000 5.000 19.000
Veriable costs 5.600 5.600 4.800 4.800 3.500 3.500 13.900
 
Fix Costs 1.300 1.300 1.500 1.500 1.200 1.200 4.000
 
Profit.................. 1.100 1.100 - 300 - 300 300 300 1.100
13
IS GROWTH IMPORTANT FOR PROFITABILTY ?
PROFIT ANALYSIS PROFIT ANALYSIS              

2. Situation
  A A B B C C   Total
Sales 8.000 8.000 5.000 5.000 13.000
Veriable costs 5.600 5.600 3.500 3.500 9.100
 
Fix Costs 2.300 2.300 1.700 1.700 4.000
 
Profit ................. 100 100 -200 -200 -100
14
IS GROWTH IMPORTANT FOR PROFITABILTY ?
PROFIT ANALYSIS PROFIT ANALYSIS              

3. Situation
  A A B B C C D  Total
Sales 8.000 8.000 6.000 6.000 5.000 5.000 2.000 21.000
Veriable Costs 5.600 5.600 4.800 4.800 3.500 3.500 1.400 15.300
 
Fix Costs 1.000 1.000 1.300 1.300 1.100 1.100 600 4.000
 
Profit ................. 1.400 1.400 - 100 - 100 400 400 0 1.700
15
ÖZAF ANALIZI
ÖZELLIK AVANTAJI MÜSTERIYE FAYDASI KANIT
Ölçüleri, rengi, tadi, kalitesi, dagitimi, fiyati, sartlari, sekli, paketlemesi, servisi, teknolojisi, içindekileri, Hizi, korumasi, gücü, çabukluk, Degerlerin tatmini, Kar artisi, zaman kazanimi, satislarin artmasi, maliyetlerin düsmesi, stok azaltma, Rapor, makale, resmi belge, Üniversite arastirmasi, ...





Temizlik süpürgesi saticisi bu süpürgenin
yüksek hizda çalisan motoru vardir (Özellik), bu
sayede iki kat hizli çalisir (avantaj), bu da
sizin temizlik sürenizi 30 azaltir.( fayda).
Spor ayakkabi saticisi bu ayakkabinin esnek
tabani (özellik) sayesinde daha hizli kosmaniz
saglanir (avantaj), böylece tüm yarislari
kazanabilirsiniz.(fayda).
16
(No Transcript)
17
DIFFERANTIATE
Specification Of the Products Specification Of the Rivals Difference Does the customer avare of the difference? If they know the difference do they care?



Do they care the difference?
18
Differentiate (or die)

• Packaging
• Guarantee
• Shops
• Sales aids
• Payment method
• Fation
• Durability
• Image
• Versions
• Clours
• Service

19
(No Transcript)
20
PRODUCT DIFFERENCE ACTION PLAN
Crest (dis macunu) Fluoride ilave edilerek üretilmistir. Kimse tam olarak etkisini bilemiyor ama etkili görülüyor.
Sony (Trinitron TV) Ne ise yaradigi tam bilinmiyor ama kulaga hos geliyor.
Dove Sabun Kendisine sabun demiyor. Sabunun içine krem ve losyon koyarak sanki çok farkli bir ürünmüs gibi sunuluyor.
Tapa Johns Pizza Her bir malzemenin en iyisi kullanilarak yapiliyor. Bu sekilde kendisini duyurmus.
While Castle Küçük hamburger. Tüm diger hamburgerlerden daha küçük ve ucuz.
Pampero Ketçap Domatesi soymadan üretime sokuyor. Rakipleri gibi degil farkli. Dolayisi ile daha yogun, daha iyi tat ve daha koyu bir renk elde ediliyor.
Intel Pentium Sürekli yeni versiyonunu sunuyor. Sürekli ileride. Pentium 1-2-3-4-5 ...
Gillette Sürekli yeni versiyonunu sunuyor. Sürekli ileride. Sürekli küçük degisiklikler yaratiyor.
Lange (kayak botu) Kayakçi eger arkaya dogru düserse çok zarar görüyor. Dolayisiyla bu botlar arakaya düsersen gevseyip açiliyor. Dolayisi ile sakatlanmalar azalmis. Bütün profesyonel kayakçilar bu botu giymeye basladi.
Conyon Saraplari Sise seklini degistirmisler. Kanyondan gelen yankili ses radyo reklami yapmislar.
21
Exceed the expectations of the costumer

• Logic and other examples
• Competitors
• Your ads.

22
WHY DO THE SMALL COMPANIES HAVE FINANCIAL
PROBLEMS?

• Capital inadequacy
• Inefficient working capital
• Inefficient market research
• Wrong pricing
• Wrong ad or no ad.
• Lack of quality
• FX Open position
• To much withdrawing money from company
• Lack of reporting system
• Lack of strategic planning and budgeting

23
(No Transcript)
24
PARETO LAW

• Which products create the most of the profits?
• Which customers create the most of the profits?
• 20 of the cost items, create the 80 of the
  total costs.
• 80 of the clients create the 20 of the
  profits.

25
PROFIT MATRIX
HIGH TURNOVER HIGH PROFIT MARGIN 1
HIGH TURNOVER LOW PROFIT MARGIN 3
LOW TURNOVER HIGH PROFIT MARGIN 2
LOW TURNOVER LOW PROFIT MARGIN 4
26
BREAKEVEN POINT
SALES
YTL
VERIABLE COST
FIX COSTS
1. SITUATION
27
SALES
YTL
VERIABLE COST
FIX COST
2. SITUATION
28
SALES
YTL
VERIABLE COSTS
FIX COSTS
1. SITUATION
29
SALES
YTL
VERIABLE COST
FIX COSTS
3. SITUATION
ALLWAYS FIRST TRY TO DECREASE THE FIX COSTS., AND
LATER TRY TO FOCUS ON VERIABLE COSTS.
30
MANAGEMENT OF RECEIVABLES
31

• Follow closely
• Establish internal Control
• Cash it before it is too late
• Act like a bank
• Establish a receivable process.
• Always reconcile
• Establish a limit to customer

32
RELATIONSHIP with BANKS
33

• They have also targets, they also want to do
  business
• Visit them very often
• Apply for credit when you dont need it.
• Work only with 3 banks
• You can always reschedule you payment plan.
• Always convince them with your budget.
• Show your needs as a project
• You can ask everything from your bank if you are
  financially powerful.
• Be alert when you are working with Foreign Banks.
• Report them before they ask.

34
3 PARTS OF PROFIT
ORGANISATION
MEETINGS
PERFORMANCE SYSTEM
35
(No Transcript)
36
(No Transcript)
37
LONELY PRODUCT
QUALITY
HIGH Q LOW P 1
HIGH Q HIGH P 3
LOW Q LOW P 2
LOW Q HIFG P 4
PRICE
38
LONELY PRODUCT
QUALITY
PRICE
39
LONELY PRODUCT
FIYAT
40
LONELY PRODUCT
QUALITY
PRICE
41
KAR ARTIRMA YÖNTEMLERI
KAR ENSTITÜSÜwww.karenstitusu.orgwww.karrehberi.
com info_at_karenstitusu.org