Guide to Profitable Sales

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The Profitable Business

ARMTEC, Inc. helps organizations achieve profitable strategic performance, even non-profits. Profit is seen as a measure of efficiency, and reinvesting it can further the organization’s mission. To be clear, ARMTEC’s focus is not on cost cutting. Rather, it is on guiding the achievement of profitable GROWTH. The logic of the optimal combination of Profitability and Growth is clearly communicated in this important Harvard Business Review article. While that article demonstrates the “WHY” behind the business leader’s optimization of these two success drivers. Now turn to ARMTEC, Inc. for the details on “HOW” to achieve that peak success.

Focus on Profit

We focus on profit is because it traces so easily to an organization’s P & L, Profit & Loss, or Income Statement. There is a good video on how you might look at the percentages on a P & L Statement to better understand your business. While we are not in love with exactly how or the conclusion implied by the video, just seeing the math is a good start.

P&L Components

The broad perspective of the large sections of your P & L is pretty instructive in principle. Noted are the following areas:


Understanding the transaction level within each group is crucial in grasping day-to-day actions. A “Chart of Accounts” reveals how businesses categorize their expenses. Different businesses may have varying practices, but it’s legal. Working with large companies might involve detailed documentation on how expenses roll up from departments to divisions and corporate entities. This complexity requires thorough engagement diagnostics to optimize performance strategically.

Guiding partner

Looking at the different categories, let’s discuss how improving business performance can be achieved. For instance, the “Cost of Goods Sold” section focuses on what companies produce or sell. If a company is struggling with cost efficiency in sourcing and manufacturing, we might recommend consulting an industrial engineer to explore potential economies of scale.

When it comes to economies of scale and product manufacturing savings, ARMTEC, Inc. understands the importance of working with technical design or process team partners. Scaling volumes and modifying products to save money requires a deep understanding of relationships of features to their promotional response dynamics and impact on demand, buying cycles. and repeat rates In such situations, collaboration between industrial engineers and other teams is crucial to ensure a comprehensive understanding of all the moving parts.

Considering the line for ‘Taxes’, ARMTEC, Inc. would likely refer you to a tax accounting firm specializing in your industry and likely in your state. On the ‘Interest Expense’ we might comment on your debt/equity ratio relative to the rest of your P & L characteristics with consideration of plan risk. However, shopping specific debt-equity brokers, leveraging tax efficiency in rate calculations, and these types of consideration is likely an area we would work with a preferred financial expert. Our work with such an individual is around the area of ‘Pro forma’ planning to assure the other team members are ‘future thinking’ in terms of recommendations to assure they are strategically consistent with your broader business plans.

Revenue or Sales Leadership

It may sound like ARMTEC, Inc. is talking ourselves out of all sorts of lines in your business. So exactly what are the areas that we specialize in supporting? The big one is that ‘top line’ for Revenue or Sales — we aim to help you drive it. Driving it profitably is the most important thing you need your business to do to be successful. This is a key linking point of GROWTH and PROFITABILITY.

Profitable Growth

The biggest areas of concentration tend to be these:


The logic is this. Selling, Marketing, and Advertising expenses are short-term and long-term drivers of Revenue trend. They are relatively large in size. They are direct levers between expense and revenue. Using them properly and efficiently is core to driving a growing profit stream; not an expense stream that grows proportionate with Revenue. Rather, an expense stream that is foundational to ROI performance improvement.

Technology/R&D are also often key performance drivers that are foundational to assuring features that drive purchase choice are emphasized and technical advancements are not done just for their own sake. And it is critically important that the approach to spending in this area is closely tailored to the underlying business model of the organization.




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