September 5, 2023

Working hard but not seeing the profits?

It’s a terrible feeling when your profit margin doesn’t match the time, worry, and sheer effort you’re putting into your business. Now is the time to get off the treadmill for an hour and sit down with Tactica Partners to run your figures through our Profit Model and typically show you one or two small things you could change that will result in a big difference to your bottom line.

So just what is a Profit Model?

Over many years of working with many businesses, there is a common mistake many, if not most are making, and it is this: They don’t have a financial model of their business which predicts how much profit the business will make if they charge X dollars per hour/widget and sell Y volume.

In fact this problem is so widespread, that many (if not most) businesses are undercharging. This in turn sets the benchmark for prices in their industry which ‘forces’ their competitors to charge the same, sentencing them to the same fate. The owners of these businesses grind away, often for years, wondering when the proper wage and profit is going to start.

When, in desperation they finally engage someone like us to help them, and a Profit Model is developed, the lights come on. They see what they need to do to push their business into profitability and inspires them to make the changes. They wish they had done it years’ ago. The tragedy is the profits they could have made but didn’t and those years are now gone (not to mention the businesses that don’t survive at all).

So what exactly does a profit model look like and how do you get one?

A Profit Model is built using a spreadsheet app – the usual ones work fine. It only takes an hour or so to get the basics done. It really is as easy as that with Tactica’s template to start with.

At Tactica, we are such big believers in the power of this tool, that we offer to develop a customised model for any owner of an Australian business with a turn-over greater than $500k for free – no strings.

Any business owner simply needs to arrange a meeting with us for 1 hour – in person or via zoom/teams. Bring a P&L covering a 12 month period so we get an idea of costs, or let us into your accounts and we’ll do it for you. You will probably know the salaries of your staff close enough and can supply the rest of the information off the top-of-you-head.

You will leave the meeting with a Profit Model developed for your business, and most importantly, a clear idea of what you need to do to increase the profit of your business.

Imagine what a Profit Model could do for you and your business. You enter the sales you believe you could make, and the delivery capacity you have, and out pops your annual profit. Once you’re happy the numbers are about right, you have the targets you need to achieve each month (or week) to guide your business with. If they are not working out, you know what the outcome is likely to be, and know what you need to do about it.

If you don’t already have a financial model of your business, there is no better investment of an hour you can make, and no better time than now.

To book your free session, call 08 9387 5637 or email

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