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:
Improving Profit Mrs Hunter
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
questions…. What is profit? ____________________________ How is profit used? ____________________________ Why is profit important? _______________________________________ ____________________________________
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
?v=6i49wZWHwOM CAT How do we Improve Profitability?
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
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’
Completed Profit and Loss What does this show?
TASK Complete the gaps on your profit and loss account. What are the problems here? Suggest ways in which we could improve profits.