absolute
Optimization: Business Turnaround
absolute Profit Company is a pre-determined profit management solution that provides you the ability to implement metrics on every component of your business and then decisively navigate earnings with metric profit tools.
Therefore, employees, equipment, inventory and services are tagged to a pre-calculated business proforma that has instant implementation capabilities for profit recovery and continued profit management.
Profit………. Without it you are out of business!!!
Definition of Absolute Profit
Absolute profitability measures the impact on an organization’s overall profits of adding or dropping a particular segment, such as a product or customer, without making other changes. Relative profitability is concerned with ranking products, customers, and other business segments to determine which should be emphasized. (Investopedia)
How is Absolute Profit achieved?
Absolute profit is achieved by modeling with a strategic profit policy. The process is incrementally achieved with good decisions, such as business profit leaks creep into your business that grows with poor uninformed and emotionally decisions.
Achieved by:
First, setting aside an Absolute Predetermined Profit to cover stakeholders investment and a rainy-day fund.
Second, the set aside is taken right off the top line revenue before paying any fixed and variable cost. This forces critical thinking to stratify cost understandings on each product or service of your business. All intrinsic cost is identified and measured against profit in a closed loop management system.
Third, the business is compelled to make solid profit decisions based on solid information, branding creation factors, six sigma production metrics and point of sale closing strategies.
Fourth, employees are incentivized by performing critically thinking on an individually and in a corporate mind level set by “eliminating the bad and repeating the good” on a daily basis and then setting the measurable metrics and six sigma factors.
Fifth, by protecting profitability “Good Decision Policy” by deciding which products or service to drop when a constraint trade force is presented.
Six, practice leaky business prevention management by utilizing a simple “Ben Franklin” white board evaluation.
What Is Absolute Advantage?
Absolute advantage is the ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time, or to produce the same quantity of a good or service per unit of time using a lesser quantity of inputs, than its competitors.
Absolute advantage can be accomplished by creating the good or service at a lower absolute cost per unit using a smaller number of inputs, or by a more efficient process.
KEY TAKEAWAYS
An absolute advantage is when a producer can provide a good or service in greater quantity for the same cost, or the same quantity at a lower cost, than its competitors.
A concept developed by Adam Smith, absolute advantage can be the basis for large gains from trade between producers of different goods with different absolute advantages.
By specialization, division of labor, and trade, producers with different absolute advantages can always gain more than producing and consuming in isolation.
Absolute advantage can be contrasted with comparative advantage, which is the ability to produce goods and services at a lower opportunity cost.
Ask yourself.
How long has profit been a problem?
What have you done to fix it?
Did that work?
How much do you think this problem has cost you to date emotionally, financially, and time?
How do you feel about it?
Have you given up?
A business repositioning and turnaround is a 3-week process and produces profitable results within 90 Days.
absolute Development Business Turnaround Modeling
-
Revitalize your business strategy with our expert restructuring and repositioning modeling services! Our team of seasoned professionals will guide you through alignment, agreements, and implementation to foster sustainable growth and success.
-
Smoothly navigate the complexities of business collaboration with our dedicated support. We'll help you establish effective alignments, agreements, and implementation plans to ensure seamless operations and lasting partnerships.
-
Unlock financial stability with our predetermined profit management strategies. We'll help you set realistic profit targets, optimize your resources, and monitor your progress to achieve consistent growth.
-
Maximize your company's earning potential with our residual profit management services. We'll help you identify and leverage additional revenue streams, ensuring long-term financial success.
-
Reinvest in your business's future with our retained earnings profit management expertise. We'll guide you in making smart financial decisions, allocating resources efficiently, and fueling growth through strategic reinvestment.
-
Inspire your workforce with our pay-for-performance implementation services. Our team will help you design and implement a fair, motivating, and transparent compensation system that rewards employees for their contributions and drives results.
Stratifies profit and cost in a controlled conduit for each of your services and products.
The standard profit model reports residual profits of “Whatever is left over” at the end of the year. Profits are not fully realized until Q4 being a consequence of the annual going forward plan taking time for absorption and returns to materialize. Absolute profit modeling treats profit as a predetermined profit requirement with margins being taken off the top as an obligation to pay debt and stake holders along with a rainy-day reserve. Fixed and variable cost are modeled into a productivity formula deployed and managed by the employee’s who control the related cost and productivity metrics. Thus, task and metrics drive the business with a corporate ERP system aligned and executed with measurabability. Decisions are based good information and well aligned with corporate critical thinking navigating a strategic road map with tactical implementation measured weekly.
working ahead of the event curve
absolute methods for shifting your profitability by removing the bad & repeating the good
The profitability curve is managed incrementally with the going forward plan working out interferences by simply repeating the good and eliminating the bad. This simple evaluation is done with all participants of the company to be certain everyone on board with the company is working with the same cost and profit information to maintain and shift the Profit Curve with measurable input-thru-put and out put. Remember if you can’t measure the input and incremental processes of the thru-put you can not improve the outcome.
An Absolute profit Optimization Planning Analysis “APOP” will properly evaluate your operations in order to reposition your company’s and deliver the best course of action for a rapid profit recovery.
The analysis provides factual and measurable quantifications of your current:
cash flow
debt and capital structure
products and services
sales and operation efficiencies
reporting systems
employee evaluations ……..
We will illustrate for you an end-to-end plan to survive and profit in today’s economy.
The analysis will show you how to develop Absolute Profit Optimization Plan “APOP” that you can use to self correct your company’s performance. Employee’s will buy in and rally around your new strategic profit plan because everyone wants to know what’s in it for them.
If you choose to ask for our help. Absolute Profit™ systems repositioning shows you how your profit is created and formed, and then gives you the ability to dial productivity up or down and create absolute profits in your current business environment. Yes, we are profit engineers with processes, procedures and policies designed to help your company survive the chaos and crises as you adjust your company’s path to prosperity.
Closed Loop Management System
absolute Profit Optimization
Planning Goals
Determine metrics for Absolute Profit™ in your company.
Find sources for Absolute Profit™ in your company.
Demonstrate a profit plan with solutions for your company.