Presentation on theme: "Improving Profit www.njhunter.co.uk Mrs Hunter. www.njhunter.co.uk NO IDEA I NEED HELP NEVER HEARD OF IT OK I CAN DO THIS WITH SUPPORT SOME GUIDANCE NEEDED."— Presentation transcript:
www.njhunter.co.uk NO IDEA I NEED HELP NEVER HEARD OF IT OK I CAN DO THIS WITH SUPPORT SOME GUIDANCE NEEDED NEARLY AT MY TARGET GOT IT! VERY CONFIDENT WILL HIT MY TARGET GRADE EXCEED TARGET Success Criteria < C Define profit and loss and ways in which we can improve it C > Create a working profit and loss account and apply realistic ways in which profits can be improved B > Create a working profit and loss account and apply realistic ways in which profits can be improved and analyse the impacts A >QOWC and SPAG LEARNING OBJECTIVES Investigate how we can improve PROFIT
www.njhunter.co.uk questions…. What is profit? ____________________________ How is profit used? ____________________________ Why is profit important? _______________________________________ ____________________________________
www.njhunter.co.uk Answers... What is profit? Sales Revenue – Costs/ expenses How is profit used? Expansion, investment… Why is profit important? A main FINANCIAL objective, it measures success, difference between success and failure
http://www.youtube.com/watch ?v=6i49wZWHwOM CAT How do we Improve Profitability?
www.njhunter.co.uk Improving Profitability Improving Quality will reduce; – Returns – Breakdowns – Re-funds / Fines Reducing Costs – Economies of scale, bulk buying – Cheaper quality – New suppliers (perhaps from overseas) Increase Sales Revenue – Advertising / Marketing – Lowering prices might mean you sell more
www.njhunter.co.uk The Profit and loss account A record of past costs and revenues (often for 1 year) It can look at total costs over a period E.g. Spent £500 on shampoo this year Staff cost £45,000 Made 1 million in sales last year. Who will be interested in a companies profit and loss account? Managers- planning purposes, Owners, Potential investors
We looked at this spreadsheet in year 9 And calculated profits and loss for ‘Hair by Hunter’