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Business Planning for Success_rob Hartnett

Business Planning for Success_rob Hartnett

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Published by Rob Hartnett
Sales performance specialist lifts the lid on what it takes to build a success business and the importance of sales and marketing in building long term brand value and goodwill which can eventually be turned into wealth through business.
Sales performance specialist lifts the lid on what it takes to build a success business and the importance of sales and marketing in building long term brand value and goodwill which can eventually be turned into wealth through business.

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Published by: Rob Hartnett on Apr 14, 2009
Copyright:Attribution Non-commercial

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05/11/2014

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Planning For BusinessSuccess
Rob Hartnettwww.robhartnett.comwww.businessperformance.com.au
 
Planning for Business Success
The first thing for any business owner to realise is that two of their most importantassets are their brand and in turn the goodwill they build up in their business overtime.This is what people buy when they buy a business be it a franchise, a newbusiness or they are a large corporation buying a small innovative business thathas attracted a market they want.Make no mistake about it sales and marketing is what delivers the brand and thegoodwill over time. Of course I am assuming you have a quality product andexcellent customer service. They are mandatory in today’s market not options.However I have seen too many great business ideas, excellent innovations andhigh quality product out sold and out marketed by products of less but sufficientquality to know the difference that great marketing execution can make.Let me demonstrate with an example of the key drivers of any business.There are just seven ways to drive profit in any business and these are made upof either increasing revenue or decreasing costs.
5 Ways to Increase revenue
1. Increase number of leads2. Increase the conversion into sales3. Increase average sales value4. Increase number of times p.a. that clients buy5. Increase the profit margin per sale
 
2 Way to Decrease Cost
6. Decrease variable cost per sale7. Decrease fixed overheadThe focus of this article is the first five so let’s have a look at how just a 10%increase across these five variables would impact profit.
Business Drivers in Action
Source: Better Business InstituteAs you can see a 10% increase across these five areas has a dramatic effect onthe bottom line. This example is so simple yet I have had marketing people from
#1. Leads/Enquiries x#2. % Conversion To Sale =
Number of Customers x
#3. Average Sale Value =
Sales Turnover x
#4. Repeat Sales per year
Annual Turnover
#5. Profit Margin
Annual Gross Profit
Current
10010%
10
$1,000
$10,000
4
$40,000
50%
$20,000
Increase in Net Profit10% incr
.
11011
12.1
$1,100
$13,310
4.4
$58,564
55%
$32,210
62%

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