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Abstract

Biz Math

How to revolutionize the way that you make business decisions.

For less than US$180 you can acquire a unique software tool and the
know how to avoid the most common pitfalls threatening businesses and
ensure that sales generate profits.

Did you know?

Around 1% of businesses suffer catastrophic failure and bankruptcy each
year. However, that is not the full story. Over the life of a business
only about 40% are profitable, 30% break even and 30% lose money.

Even more revealing is the indication that over 90% of business
failures are due to management error. Avoidable mistakes are being made
due to failure to apply some basic math.
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Price/Volume Dynamic Benefits Easy To Use Unique Who Free
Video Buy Now
__________________________________________________________________

The most common serious but avoidable mistake made in business.

When setting product prices and production volumes management too often
fails to properly consider profit margins, the change in working
capital requirements and the impact on the value of the business.

The most common serious but avoidable mistake made in business is
failure to understand and apply the Price/Volume Dynamic when setting
prices.

All profit improvement strategies will comprise either reducing costs,
increasing prices or increasing the volume of sales.

Costs can be varied without necessarily impacting on either Volume or
Price.

Price increases always have the biggest impact but when Price increases
there will usually be a reduction in the volume of sales (Price/Demand
relationship).

But when Volume changes then revenue, variable costs, working capital
and the value of the business will all change.

So, when setting prices and/or negotiating with customers management
needs to forecast how the price change will impact on sales volume. And
understand how the resultant change in volume of sales will impact on
variable costs, profits, working capital and the value of the business.

This is referred to in Biz Math as the Price/Volume Dynamic.

Business managers need to understand the Price/Volume Dynamic when
making business decisions such as setting prices and production
volumes.

This is not as onerous as it may seem to be. Time-consuming training is
not required. A top-down methodology, Biz Math, has been developed to
explain why and how management should apply the basic math essential to
business success.
__________________________________________________________________

Avoidable Business Failure - Example

A manufacturer decided to grow sales revenue by offering significant
price discounts to stimulate an increase in sales volume. Prices were
reduced by 10%. Consequently sales volume rose by 15% and revenue was
3.5% higher.

Initially management was happy with the situation but it soon became
evident that all was not well. Although revenue had increased profits
had fallen and additional funding was required for trading working
capital. Failing to recognize the nature of the problem management
resorted to an even more aggressive price discounting strategy. The
outcome was the classic death spiral of prices being reduced to chase
volume and the eventual failure of the business.

Just what went wrong should not have been a mystery to management.

A few minutes of Biz Math would have made it obvious that losses would
be sustained and that additional funding would be required. The
consequent reduction in the value of the business would also have been
readily apparent.

__________________________________________________________________

Would your business benefit from Biz Math?

Certainly. Any business can benefit from application of the Biz Math
methodology. It is applicable to all industries; manufacturer, retailer
or services company.

Size does not matter. All businesses; small, medium and large can
benefit.

Biz Math is intuitive to apply. It is informative and addresses only
the information that business decision-makers need to know.

There are just seven key numbers utilized in Biz Math.

There are just three key questions that need to be answered by
management when deciding product prices and production volumes.

A computer program, Biz Math, is available to implement the
methodology.
__________________________________________________________________

Who else could benefit from Biz Math?

In addition to applying the methodology in-house there is the
opportunity for it to be applied effectively and economically by a wide
range of service companies and organizations:
* Business Coaches can deliver a unique, state-of-the-art service to
their clients via seminars or individual sessions.
* Accounting Firms can provide business advice to their clients.
* Banks can gain insight into their borrower's financial performance
and help up-skill their clients' business acumen.
* Business Associations can provide training and support to members.
* Consultants can deliver business advisory services.
* Educational bodies such as universities and training organizations
can use it as a learning tool when delivering business related
courses.
* Training centres selling and delivering business related courses.

My initial impression of Biz Math was its potential for me to deliver
an innovative and valuable service to my clients. Since studying it in
more detail I have confirmed and strengthened that initial
perception... the focus on profitability and the way that key issues
such as trading working capital and the value of a business are so
effectively addressed in Biz Math is unique and groundbreaking... Dave
Gaynor, Business Coach
__________________________________________________________________

Will Biz Math help me make money?

The conservative answer is "Probably." But what is certain is that
management will learn how to avoid some of the most common pitfalls
that threaten business.

So the best answer to the question `Will Biz Math help make me money?'
would be "Probably, but you can certainly avoid losing money."

Management will also be able to make better-informed business decisions
and be more confident that their efforts are not being misdirected.

Management will be better able demonstrate to shareholders, owners and
bankers just how your current and proposed business strategies will
impact on financial performance and value of the business.

Management can readily demonstrate to their bank that they know what
they are doing when they make business decisions that require
additional financial support.
__________________________________________________________________

Is Biz Math easy to use?

To answer that question consider the following email received from an
attendee at a small business seminar who was reluctantly given a
pre-release copy of the software to trial.

Thanks for the seminar last night. We were very excited to apply the
[Biz Math] knowledge that we gained last night.

First thing this morning we ran the Biz Math Calculator and found it
very straight forward and most informative.

How would you like to be paid for the software? Either direct credit or
cheque would work well for us.

Once again, thanks. Ross

Note - No instruction was given in how to use the software. No
installation of the software was required.

Another unsolicited email was received from a senior business manager
who was given a trial copy of Biz Math. It went as follows:

Impressive! Easy to use - no instruction needed. Graphical and logical.

Found that by increasing everything by 5% (including inflation) then
the PBIT increases by a rampant 80% - Wow!.

The compounding mathematical effects are amazing.

See you soon. Patrick

__________________________________________________________________

What makes Biz Math unique?

The unique features of Biz Math are rooted in the top-down methodology
that permits the display and manipulation of data graphically.

The level of detail is appropriate to decision making in business.

Basic Business Math is a "top-down" methodology. What does that mean?

Top-down describes an analytical approach based on analyzing a subject
with the so-called helicopter view. That is to rise above the detail of
a situation and look at the big picture without being confused by
unnecessary detail.

The user is able to manipulate fundamental business parameters
comprising product price, production production volume, productivity
and inflation assumptions by the use of 'sliders'.

The focus is on Margin and PBIT (Profit Before Interest and Tax).

Profit margin and PBIT are absolutely crucial if a business is to
prosper. There are no exceptions.

The following should also be self-evident to all business managers.

Product price setting and negotiations with potential purchasers
require that the profit margin is known and taken into account.

Profit improvement strategies should first investigate price increases,
even when the volume of sales will reduce. Discounting prices to get
sales is one of the most common, and most serious, mistakes that a
business can make.

Profit improvement strategies require that product price/volume
relationships are known and that costs have been identified as either
fixed or variable. It is a common mistake to regard growth in revenue
as a goal in itself. This can lead to offering bonuses to salespersons
based on the sales revenue not the profitability of a sale.

Changes in production volume will impact on working capital
requirements. Trading Working Capital should be re-calculated whenever
production volume changes.

Productivity improvement strategies need to be ongoing if only to
offset the `hidden tax' of inflation. Inflation is always a factor to
be considered.

Business strategies should always be considered in terms of whether or
not the proposed changes will increase the value of the business.

Business valuations are updated and displayed as changes are made to
the business parameters.

This ensures that when setting price and production volume decisions
that the impact on the value of the business is taken into account.

Trading Working Capital is recalculated automatically as changes are
made to the business parameters. This provides an early warning of
consequential increases in funding for trading working capital.

Cash Exposure Days are utilized to reflect the overall performance by
management to control the trading working capital tied up in a
business. Failure to control and fund trading working capital is
frequently the final nail in the coffin of a failing business.
Cash Exposure Days represent the time from the payment for raw
materials and services until payment is received for the sale of
product.

The Biz Math approach is particularly appropriate in training sales
persons, and any other persons involved in negotiating prices, to
understand the need to preserve margins and the impact on trading
working capital.

In a simple intuitive fashion Biz Math enables the user to calculate
and demonstrate the impact of changes in product price, production
volume, productivity changes and inflation of profit, margin, working
capital and business valuation. This enables flawed business strategies
to be identified and discarded. It also enables management to
demonstrate to shareholders and banks that their business strategies
are soundly based.
__________________________________________________________________

Who is responsible for Biz Math?

Dennis Debney Certified Practising Accountant, Chartered Professional
Engineer is the author of the Biz Math methodology and developer of
the Biz Math calculator.

Graduating in civil engineering in the 1960s Dennis's initial
professional experience was in engineering design, construction and
critical path planning. Subsequent accountancy studies and
qualification as a CPA led to project management roles covering
technical, commercial and financial aspects.

Considerable experience has been gained in due diligence studies and
the presentation of proposals to corporate Boards, public meetings,
potential investors and banks.

In recent years Dennis has been active providing business valuations,
project development advice, financial diagnostic services and training
in financial performance assessment. A high degree of expertise has
been gained in financial modelling and, supported by a number of
independent consultants, he has been responsible for the development of
a suite of financial analysis software programs.

Biz Math is his latest effort to overcome that perverse human
characteristic that seems to enjoy making simple things difficult.
__________________________________________________________________

"Introduction to Biz Math" Video (Free)

Anyone interested in assessing the performance and value of a business
objectively should find the time spent watching this video well worth
their while.

Click below to view Video of Introduction to Biz Math on line.

View Video on line.

Click below to download copy of Introduction to Biz Math video.

Download Copy of Video.

For further reading - "The Power of Positive Profit" by Grahame Foster.
This easy to read and informative book addresses profit improvement
strategies and the perils of price discounting. It is available for
purchase online at pacificseminars
__________________________________________________________________

Biz Math Calculator

(Buy Now - Purchase Price US$179.00)

The Biz Math calculator is a computer program developed in Real Basic
to run on Microsoft Windows computers. An Apple MAC version will be
released 'soon'.

Biz Math does not need to be installed. It will execute direct from a
CD or data stick. Alternatively it be simply copied onto your
computer's hard drive.

It will be delivered by downloading a Zip file containing the
executable program, a licence file, the Biz Math methodology ebooklet
(PDF) and a User Guide (PDF).

Purchasers can rely on prompt Email response to all support requests
and enquiries.

-
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End of Abstract

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