26 04, 2018

What margin should we target?

By |2019-06-24T01:37:48+10:0026 April 2018|Featured|0 Comments

Over the years I have been asked this question on many occasions. The enquirer is looking for a number but the number depends on many factors. So the answer is to explore a range of principles that apply to these factors. Let’s look at this for both from the “gross profit margin” and the [...]

19 04, 2018

Gross profit explained without numbers

By |2019-06-24T01:43:16+10:0019 April 2018|Featured|0 Comments

How front of mind is the meaning of gross profit for most business managers. If asked to describe what gross profit is, they would invariably say it is sales revenue minus cost of sales. Of course that is correct, but what does it truly represent? For me, it represents a measure of customer value [...]

5 04, 2018

Don’t assume when making assumptions

By |2019-06-24T01:56:51+10:005 April 2018|Featured|0 Comments

Planning is one of the key drivers of success in business. We all know that a proactive management approach is critical for achieving successful outcomes. A key element of your business plan is the financial plan, or forecast. This is used for budgeting purposes. For a budget to be a valuable performance management tool [...]