Are you happy with your ‘hourly rate’?
Unfortunately, many family business owners in Australia could be earning more as a salaried employee. When you take into account the hours they work and the return from the business, it’s a pretty dismal ‘hourly rate’.
We see examples every week that even the financial success of established, profitable businesses can change rapidly in today’s global economy. It’s absolutely critical to have rigorous financial management processes to ensure you become or remain financially successful, and don’t become a statistic. I want to assist my clients to generate wealth. Wealth gives you choice as opposed to stress.
Here we will look at processes and strategies to:
- Improve cash flow
- Manage variable and fixed expenses
- Maximise gross profit
- Maximise net profit
- Measure financial performance against budget
- Manage the price and volume relationship
- Improve asset utilisation
- Improve return on capital
- Grow equity
There are only 4 levers to pull to increase profitability; increase volume, increase price, decrease cost of goods sold and decrease fixed expenses. Which lever to pull and how hard is where experience counts. Raffino have numerous clients where we have been able to double or treble profitability in a short space of time, by pulling the correct levers at the correct time.