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PROFIT IMPROVEMENT OPPORTUNITIES for SMALL BUSINESS MANAGERS. BA 4452. How do you improve profits. METODOLOGY. What is methodology ?. 2 ile 9 arasında aklınızdan bir sayı tutun Bu sayısı 9 ile çarpın Çıkan sayının iki hanesini birbiri ile toplatın : 25 ise 2+5=7 gibi
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PROFIT IMPROVEMENT OPPORTUNITIES for SMALL BUSINESS MANAGERS BA 4452
How do youimproveprofits METODOLOGY
What is methodology? • 2 ile 9 arasında aklınızdan bir sayı tutun • Bu sayısı 9 ile çarpın • Çıkan sayının iki hanesini birbiri ile toplatın : 25 ise 2+5=7 gibi • Bulduğunuz sayıdan 5 çıkartın • Kalan sayı alfabenin kaçıncı harfi?
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
MEYVENİZ ? NAR KAR ENSTİTÜSÜ
3 OPSTICALS • Negative Attitude • Confirmation • Justification KAR ENSTİTÜSÜ
3 CONDITIONS • TO KNOW • TO WANT • TO IMPLEMENT KAR ENSTİTÜSÜ
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 KAR ENSTİTÜSÜ
SUCCESSFUL COMPANY • Market Share • Improvement of sales • Improvement of profit • Production effectiveness • Market Value KAR ENSTİTÜSÜ
Where to start profit improvement? KAR ENSTİTÜSÜ
IS GROWTH IMPORTANT FOR PROFITABILTY ? KAR ENSTİTÜSÜ
IS GROWTH IMPORTANT FOR PROFITABILTY ? KAR ENSTİTÜSÜ
IS GROWTH IMPORTANT FOR PROFITABILTY ? KAR ENSTİTÜSÜ
ÖZAF ANALİZİ Temizlik süpürgesi satıcısı: “ bu süpürgenin yüksek hızda çalışan motoru vardır (Özellik), bu sayede iki kat hızlı çalışır (avantaj), bu da sizin temizlik sürenizi %30 azaltır.( fayda).” Spor ayakkabı satıcısı: “ bu ayakkabının esnek tabanı (özellik) sayesinde daha hızlı koşmanız sağlanır (avantaj), böylece tüm yarışları kazanabilirsiniz.(fayda)”. KAR ENSTİTÜSÜ
DIFFERANTIATE Do they care the difference? KAR ENSTİTÜSÜ
Differentiate (ordie) • Packaging • Guarantee • Shops • Sales aids • Payment method • Fation • Durability • İmage • Versions • Clours • Service KAR ENSTİTÜSÜ
Exceed the expectations of the costumer • Logicandotherexamples • Competitors • Yourads. KAR ENSTİTÜSÜ
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 WHY DO THE SMALL COMPANIES HAVE FINANCIAL PROBLEMS? KAR ENSTİTÜSÜ
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. KAR ENSTİTÜSÜ
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 KAR ENSTİTÜSÜ
BREAKEVEN POINT SALES YTL VERIABLE COST FIX COSTS 1. SİTUATION KAR ENSTİTÜSÜ
SALES YTL VERIABLE COST FIX COST 2. SITUATION KAR ENSTİTÜSÜ
SALES YTL VERIABLE COSTS FIX COSTS 1. SITUATION KAR ENSTİTÜSÜ
SALES YTL VERIABLE COST FIX COSTS 3. SITUATION ALLWAYS FIRST TRY TO DECREASE THE FIX COSTS., AND LATER TRY TO FOCUS ON VERIABLE COSTS. KAR ENSTİTÜSÜ
MANAGEMENT OF RECEIVABLES KAR ENSTİTÜSÜ
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 KAR ENSTİTÜSÜ
RELATIONSHIP with BANKS KAR ENSTİTÜSÜ
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. KAR ENSTİTÜSÜ
3 PARTS OF PROFIT ORGANISATION MEETINGS PERFORMANCE SYSTEM KAR ENSTİTÜSÜ
LONELY PRODUCT QUALITY HIGH Q LOW P 1 HIGH Q HIGH P 3 LOW Q LOW P 2 LOW Q HIFG P 4 PRICE KAR ENSTİTÜSÜ
LONELY PRODUCT QUALITY PRICE KAR ENSTİTÜSÜ
LONELY PRODUCT FİYAT KAR ENSTİTÜSÜ
LONELY PRODUCT QUALITY PRICE KAR ENSTİTÜSÜ
KAR ARTIRMA YÖNTEMLERİ KAR ENSTİTÜSÜwww.karenstitusu.orgwww.karrehberi.cominfo@karenstitusu.org KAR ENSTİTÜSÜ