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The multi-year analysis calculator was created as a result of an experience in working with a business owner. Over a period of several years, the sales and profit of the business had increased. As they should be, the owner was very proud of their efforts. However, when we took a look at how that growth had occurred there were several points that stood out. The first was that the gross margin had wavered over the years and in the most profitable year they did not have their best gross margin. When we looked at the groups of operating expenses, advertising, occupancy and payroll, as well as operating expenses overall, we saw there were fluctuations. With the fluctuation in advertising expense as a percentage of sales, you could see that an advertising budget was not utilized. You could see with payroll as the sales increased and decreased over the same four years, that with the addition of a new employee as sales increased, there were not fewer employees in the years with lesser sales. Overall the owner was pleased with their efforts. However, if controls of margins and expenses, the net profit would have been 1.5 times what it actually was in the best year. This calculator helps you to detect those patterns.
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SEPTEMBER 2026
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With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.
Small Business
Our September advisory is titled, "What do you sell?" My favorite example of someone getting it wrong has an email that starts with, "Sallysellsinsurance@."
Yes, that may be the product that Sally sells, but what she is really selling is peace of mind in knowing that if something happens, you are not going to pay the entire cost of the loss.
This is but one example. Our September advisory - What do you sell?
Small Business
Yes, selling does include translating features into benefits. But it does not stop there. What if the benefit is not relevant to the customer? Then, there might not be a sale. This is where advantage comes into consideration, and that is our top story of the month.
When you think about a customer who makes a point to talk to you and your staff, have you ever thought about getting them to talk about your business with their friends? The September Article of the Month shares an idea.
The Art of the Exit is our suggested book of the month. The author, Jackb Orosz, discusses ways of getting out of your business whether it is retiring or just time to move onto something else.
All this plus the Internet Tool for Your Business and a staff incentive idea for your business.
