Holmegarth Profitability Navigator
7 levers to improve your numbers - incremental changes with massive results
Total Cash Impact
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Total Profit Impact
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Impact Analysis
This waterfall chart shows how each adjustment contributes to the final profit. The base bar represents the initial profit, and each subsequent bar shows the positive (green) or negative (red) impact of an adjustment, leading to the final total (primary color).
Key Metrics: Before & After
Gross Margin
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Net Profit %
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Debtors Days
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Inventory Days
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Cash Cycle
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Strategic Insights
The 7 Levers of Profitability
The "Power of One" concept is built on seven key levers you can adjust to significantly improve your business's financial health. Here's how they relate to this tool and strategic management:
- Price: A small increase in price, even 1%, can have a massive impact on your profit. The key is to communicate this effectively, justifying the value to segmented customer groups through tailored messaging.
- Volume: Increasing the volume of goods sold or services delivered directly boosts revenue.
- Cost of Goods Sold (COGS): By building strong, communicative relationships with your suppliers, you can negotiate better terms and pricing, leading to cost reductions that flow straight to your bottom line.
- Overheads: Scrutinize your recurring overhead costs, such as subscriptions. Leverage AI to identify and automate low-value tasks to reduce operational spending and increase efficiency.
- Debtors Days: Speeding up the time it takes for customers to pay improves cash flow. Implement automated systems like QuickBooks to chase payments, moving away from slow, manual processes.
- Inventory Days: Optimize your inventory management by implementing an ERP system. This allows for better forecasting, demand planning, and tracking, enabling you to reduce days and clear out old stock effectively.
- Creditors Days: Take control of your outgoing payments. Utilizing services like GoCardless can help you manage your cash outflow more strategically, ensuring you pay suppliers on time while optimizing your own cash position.