A guide to designing Profit & Loss Statements to enhance the success of strategic planning.

Introduction

Content of this Document
The content of this document draws upon established principles of business administration together with the tried and true daily practices of "front line" business people.

Purpose of this Document
The purpose of this document is to act as a guide for you, the owner of an existing business, who wishes to fine tune or discover new successful strategies for future growth, or for you, the new business person, with little or no experience in the starting up and running of a profitable business.

Upon Completion of this Document
Upon completion of this document you will;

• be better able to read and interpret a Profit & Loss Statement

• have been provided with tips about what to look out for and how to prevent problems arising

• understand the principle of “sustainable growth through effective pricing”

Business Growth
You will be able to utilise profits for further research and development of new ideas to enable your organisation to grow through increased opportunities.

How do you generate higher profits? One overriding strategy that you need to adopt to achieve this, is one of;
“Offering differentiation as a strategy of sustainable competitive advantage”

• Differentiation  - be different in the market place to your competitors.

• Sustainable       - don’t compete on price alone.

• Advantage      - something that will make customers prefer you over your competitors.