BUSINESS ACCELERATION CALCULATOR
(A) Input the number of team members not performing.
(B) Input the average compensation (base + all monetary incentives) – do not get complicated here.
(C) Multiply (A) x (B) x 2.5 and that will give your NBT Impact.
(D) Multiply (C) by (1-your eective tax rate) and this will give you the Cash Impact.
3. Vacant Positions – If yours is like many companies and you have an operations plan that requires a specific number of people
to achieve your goals, then it is costing you money if you do not have those positions lled. If it is common for you to have
one or more positions open every month you need to capture the cost of that leak here. It will cost you the same 2.5 times
compensation because of your failure to have a good recruiting process. Follow the same steps as a Team Member Not
WAYS TO IMPROVE SALES GROWTH RATE OR PRICE
1. We have found that a poor strategy is hindering at least 75% of companies, and that shows up in your volume growth
rate. Companies that have a great strategy have revenue growth rates of at least 3 times the industry average or 25%,
whichever is greater. If your company is not growing faster than 3 times the industry growth rate or 25%, then follow the
Target Growth Rate (3x Industry Average or 25%) (A) 30%
Your Last Year’s or Most Recent Growth Rate (B) 5%
Gap from Poor Strategy (A) – (B) = (C) 25%
Last Year’s Revenue (D) 10,000,000
Gross Margin % (E) 50%
Gross Margin $ (D) x (E) = (F) 5,000,000
NBT Impact of Poor Strategy (C) x (F) = (G) $1,250,000
Eective Tax Rate (H) 20%
Cash Impact of Poor Strategy (G) x (1-(H)) $1,000,000
2. Consider the biggest mistake in your sales process that costs the most revenue because you have not eliminated it. This
is causing lost leads, lower close ratio, client turnover, etc. List this item in the lines remaining and place the gross margin
impact of xing this problem, and that is the NBT Impact. Now calculate the Cash Impact.
3. Consider one way in which you can increase price on a subset of customers, product line, or specic service you have been
giving away and should not. Now add this to the worksheet reecting your direct cost of sales. Now calculate the Cash Impact.
4. Consider one realistic way you can innovate how you generate leads or close sales. What is the one bottleneck that if you
changed it, you could multiply the number of sales you get each quarter by 10? What is that worth to you?
WAYS TO IMPROVE DIRECT COSTS AS A PERCENTAGE OF SALES
1. Consider the biggest mistake in your operating processes that is causing the most waste and the most damage to your
relationship with customers, vendors, and employees. What is the one measure that if you improved it can contribute most
to reducing your direct cost of sales? What is the bottleneck in the process? Add this to the spreadsheet in both the NBT
Impact and Cash Impact.
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