how to calculate net profit margins | small business management | business development training
TRANSCRIPT
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Profits
Strategies to
Increase
Profitability &
CASH in Your
Bank
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The Two Ways to Increase CASH
Increase Leads,
Sales & Turnover
Plug profit“leaks” to increase Profit &
CASH
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The BEST Way to Increase CASH
To increase your business’
Net Profit MARGIN
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To Calculate the Net Profit Margin
Get a recent P & L Statement for a financial year
Find the Total Income (e.g. $1,000,000)
Look at the bottom now to find your Net Profit(e.g. $100,000)
On a calculator, divide the Total Income by the Net Profit (e.g. $1,000,000 ÷ $100,000). Then multiple it by
100. This will be the Net Profit Margin % (e.g. 10%)
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The Net Profit Margin Goal
Businesses with less than 10% (at a turnover of $700,000 or more), usually struggle with
CASH
Over 15% is very achievable for businesses -with professional training
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How to Increase Your Margin & CASH
The BEST place to start is
Measuring
By simply measuring 7 key numbers you will find your business’ profit leaks & profit
opportunities
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The 7 Key Numbers
The 7 key numbers are easily worked out… some will need to be accurate and some won’t.
With some basic training (coming soon), it’s easy to find your business’ numbers
With your numbers found, we drop them into
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The Profit Calculator Tool
Look at how a small % change can increase the profit & margin
massively!
7 Key Numbers
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Examples of Clients’ Net Profit Margin Increase
“My net profit jumped $52,000 per year to $128,000 in just 6 months with no more costs” Milton Hampe – MJ United Plumbing
“I was virtually bankrupt as my business was running at a loss of $100,000, but I turned it around with a $220,000 positive profit in 7 months” Wes Turvey – Prosolve Constructions
“My net profit margin increased from 17% to 22% while my turnover increased from $880,000 to $1,400,000. That was a $158,400 profit increase”Shane Beetson – Choice Bathrooms
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The Actual Results for the Business Owners
It didn’t just improve their business
It changed their lives!
Gone was the stress from money… it was replaced by confidence because they were now
in control of their business & could grow it
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Would $100,000 More CASH Get You Excited?
Would it…
Reduce financial pressure
Pay for someone extra to free up your time?
Give you a BIGGER salary?
Are you serious about having these outcomes?
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Only if You Are Serious…
Download the Profit Calculator Tool
www.profittrans4mations.com/ cash-offer
There’s also a FREE Strategy Training offer – (for a limited time)
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The FREE Training Offer
The TOOL is one part of the cash solution, but you also need training and the strategies
To claim your no obligation strategy training for FREE, your business needs to have been
trading for 3 years and employ 3+ staff
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You CAN Live a Stress-Free Life!
The choice is yours to live it, or not
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So Where’s the Catch?
There is none! A lot of businesses offer FREEsamples or free first appointments
Once business owners see how easy our tool and strategies will increase their Net Profit, some
want to invest in our advanced Academy training.
That’s why its FREE!
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Download the Tool NOW
www.profittrans4mations.com/ cash-offer
Let’s start working together to increase your CASH in the bank and Net Profit MARGIN. There’s no obligation, only CASH to gain!
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Net Profit Margin Increase Examples
-7% Net Profit Margin to 12% NPM on $2.0M Turnover
(Cabinetmaker – $366,000 Net Profit increase)
1.6% NPM on $1.7M increased to 11.5% NPM on $3.2M
(Plasterer – $340,800 Net Profit increase)
4.8% NPM on $6.2M increased to 9.8% NPM on $7.0M
(Engineering – $388,400 Net Profit increase)
5% NPM on $2.1M to 21% NPM on $2.4M
(Vehicle radiator business – $489,000 Net Profit increase)
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Don’t Wait & Miss Out Any LongerScepticism is simply FEAR and you miss out on HUGE
benefits in business by being sceptical
Every business has dormant profits waiting to be accessed - and your business could have hundreds of
thousands more in CASH!
Do you want yours?www.profittrans4mations.com/cash-offer
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Example of a Net Profit Margin Strategy
Raise your prices, then counteract a loss of sales with conversion rate strategies. There
are dozens of super effective ones!
Prices
Conversion
Rate
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• Blind manufacturer
• Tree service
• Wholesale fencing
• Mechanic repairer
• Picture framing
• Electrical contractor
These clients made 50% to 2,000% more in Net Profit – with price rises & conversion rate strategies
• Hair & beauty salon
• Fly fishing school
• Security & screens
• Builder
• Locksmith
• Carpet cleaner
• Fibre optic cabling
• Truck spray painter
• Security sales/serv.
• Plumber
• Plastering company
• Stone restoration
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Get this FREE Tool NOW - (While You Can)
www.profittrans4mations.com/cash-offer
And enjoy a cashed up business!