by Paul Simister
on July 18, 2013
If you want to improve the profit performance of your business, break even point analysis suggests that there are three main ways:
- To increase sales volumes
- To increase contribution rates
- To reduce fixed costs
Actions taken by turnaround consultants and business recovery experts suggest that in many cases, the fastest acting of these initiatives is to reduce fixed costs.
What Are Fixed Costs?
First a reminder of definitions.
Fixed costs are fixed in relation to volume over a normal level of business. [continue reading…]
by Paul Simister
on July 5, 2013
When I discovered how many videos there were on YouTube and the other video sharing sites on unique selling propositions or the idea of having a USP, I decided that I could add value by reviewing them.
If you missed the first set of videos you can see them and my comments at:
>>> Unique Selling Proposition Videos Review 1
Karl Bryan USP Marketing Tips
Karl Bryan is the man behind Profitable Growth Strategies (the excellent monthly small business training membership website that I promote) – which you can review at ProfitableGrowthStrategies.org so you will know that I like his ideas and I like him as a person.
The first six minute video starts with a review of the Domino’s, Fedex and Robert Allan. Karl discusses how these have powered the companies involved to massive success. [continue reading…]
by Paul Simister
on July 5, 2013
I promote myself as having the mind of a finance director and the heart of a marketer to both emphasise my main skills (and a big factor of difference to my competitors) and also to stress the two main stakeholders each business must strive to meet:
- Delighting customers so they buy and buy again
- Making enough profit for the owner to keep him or her in the game and continually innovating to add customer and shareholder value.
These two forces can be portrayed as opposing each other (e.g. a customer gains with a low selling price, a business makes more money from a higher price) but I believe there’s an optimum position that meets both.
As I intend to look deeper at the next economic crisis, which I expect to make the 2008 to 2013 contraction look like a baby, I think it’s important you understand my views on economic theory and politics.
by Paul Simister
on July 5, 2013
The Depression of 2016 by Rafael Aguayo
Book Review Rating – 4 Stars
This is a fascinating book that takes virtually all of the politics out of the debate on the economic situation by building and discussing a systems dynamics model.
You hear about the annual deficits in the USA and the UK, the high growth in China and India, the troubles in the Eurozone and like me, you probably think about how these things can be connected.
Well this book helps to answer those thoughts although its main focus is on the relationship between the USA and China.
The Origins Of The Crisis – The Boom in the USA – 1980 to 2000
Statistics analysis shows that this was a remarkable period that caused the Dow Jones index to soar. The authors research traces this back to two connected but compensating forces that have caused a great imbalance:
- The annual fiscal deficit in the USA that has pumped up the economy
- The annual trade deficit in the USA that has deflated the economy and at the same time caused the stock exchange bubble and then the real estate bubble.
[continue reading…]
