| Date post: | 27-Dec-2015 |
| Category: |
Documents |
| Upload: | jesse-watts |
| View: | 215 times |
| Download: | 2 times |
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
1/371-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
What are the Real What are the Real Numbers?Numbers?
Setting Realistic Goals Based on Setting Realistic Goals Based on Real Numbers!Real Numbers!
By Les CunninghamBy Les Cunningham
CGC, CR*, CCR*, CGRaCGC, CR*, CCR*, CGRa
http://www.businessnetworks.comhttp://www.businessnetworks.com*A NARI Certification*A NARI Certification
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
2/37
Your Expectations...Your Expectations...
1 /Name
2 /Name
3 /Name
What are your expectations of this What are your expectations of this seminar from what’s been seminar from what’s been
advertised?advertised?
(Need a Volunteer)(Need a Volunteer)
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
3/37
Basis of my information:Basis of my information:Basis of my information:Basis of my information:
Business NetworksBusiness Networks with 200+ companies!with 200+ companies!
a: Hands-on review of their numbersa: Hands-on review of their numbers
b: Participation in the major associationsb: Participation in the major associations
c: One-on-One consultingc: One-on-One consulting
d: Owned and operated my own business d: Owned and operated my own business
for 15 yearsfor 15 years
e: Won 15 C.O.T.Y. awards in a 7 year period.e: Won 15 C.O.T.Y. awards in a 7 year period.
Business NetworksBusiness Networks with 200+ companies!with 200+ companies!
a: Hands-on review of their numbersa: Hands-on review of their numbers
b: Participation in the major associationsb: Participation in the major associations
c: One-on-One consultingc: One-on-One consulting
d: Owned and operated my own business d: Owned and operated my own business
for 15 yearsfor 15 years
e: Won 15 C.O.T.Y. awards in a 7 year period.e: Won 15 C.O.T.Y. awards in a 7 year period.
It will offer you a different perspective thatIt will offer you a different perspective thatmay lead to significant results for you may lead to significant results for you personally and corporately. personally and corporately.
It will offer you a different perspective thatIt will offer you a different perspective thatmay lead to significant results for you may lead to significant results for you personally and corporately. personally and corporately.
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
4/37
$60,000,000 Lottery$60,000,000 Lottery$60,000,000 Lottery$60,000,000 Lottery
Priest Tennis Player DKI MemberPriest Tennis Player DKI MemberPriest Tennis Player DKI MemberPriest Tennis Player DKI Member
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
5/37
SystemsSystemsSystemsSystems• BudgetBudget• MarketingMarketing• SalesSales
– Pass the BatonPass the Baton– Commission Paid fromCommission Paid from
Produced Gross ProfitProduced Gross Profit
• ProductionProduction– Pass the batonPass the baton– Job CostingJob Costing
• Incentive SystemIncentive System– Beat the BudgetBeat the Budget– Paid out of net profit above 10%Paid out of net profit above 10%
• BudgetBudget• MarketingMarketing• SalesSales
– Pass the BatonPass the Baton– Commission Paid fromCommission Paid from
Produced Gross ProfitProduced Gross Profit
• ProductionProduction– Pass the batonPass the baton– Job CostingJob Costing
• Incentive SystemIncentive System– Beat the BudgetBeat the Budget– Paid out of net profit above 10%Paid out of net profit above 10%
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
6/37
50 Hours 50 Hours Max!Max!
What is the Time Frame?What is the Time Frame?
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
7/37
Common Income ComparisonCommon Income ComparisonCommon Income ComparisonCommon Income Comparison
(Refer to Handouts #1 & #2)(Refer to Handouts #1 & #2)
1999 Business Networks1999 Business NetworksIndustry AveragesIndustry Averages
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
8/37
Crucial DataCrucial DataThe Leading Indicators of the Health of your Business.The Leading Indicators of the Health of your Business.
8/378/37
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
9/37
Crucial DataCrucial DataThe Leading Indicators of the Health of your Business.The Leading Indicators of the Health of your Business.
9/379/37
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
10/37
0%0%
5%5%
10%10%
$0$0
$1
,000
,000
$1
,000
,000
$2
,000
,000
$2
,000
,000
$3
,000
,000
$3
,000
,000
15%15%
Real NumbersReal Numbers
The following charts The following charts are from the same 66 are from the same 66 companies shown on companies shown on Handout #1.Handout #1.
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
12/37
Real NumbersReal Numbers
0%0%
5%5%
10%10%
$0$0
$1
,000
,000
$1
,000
,000
$2
,000
,000
$2
,000
,000
$3
,000
,000
$3
,000
,000
15%15%
Annual Gross SalesAnnual Gross Sales
Example Expense Item:Example Expense Item:
Each dot Represents a Company
This dotindicates thatthis company
has Annual Salesof approximately$900,000 and theexpense is equal to 5% of Sales.
The calculated trend line
indicates the general trend as
companies’sales increase.
0%
5%
10%
15%
20%
25%
30%
35%
40%
Annual Gross SalesAnnual Gross Sales
Building Materials (Direct Cost) Building Materials (Direct Cost) vs. Gross Revenuevs. Gross Revenue
Shown as a Percent (%)
14/3714/37 1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
Annual Gross SalesAnnual Gross Sales
Payroll - Labor (Direct Cost) Payroll - Labor (Direct Cost) vs. Gross Revenuevs. Gross Revenue
0%
5%
10%
15%
20%
25%
30%
35%
Shown as a Percent (%)
15/3715/37 1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
Annual Gross SalesAnnual Gross Sales
Subcontractor Costs (Direct Cost) Subcontractor Costs (Direct Cost) vs. Gross Revenuevs. Gross Revenue
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Shown as a Percent (%)
16/3716/37 1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
Annual Gross SalesAnnual Gross Sales
Actual Gross Profit Actual Gross Profit vs. Gross Revenuevs. Gross Revenue
0%
10%
20%
30%
40%
50%
60%
70%
Shown as a Percent (%)
17/3717/37 1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
Annual Gross SalesAnnual Gross Sales
Payroll – Owner (Overhead) Payroll – Owner (Overhead) vs. Gross Revenuevs. Gross Revenue
0%
2%
4%
6%
8%
10%
12%
14%
16%
Shown as a Percent (%)
18/3718/37 1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Annual Gross SalesAnnual Gross Sales
Payroll – Owner (Overhead) Payroll – Owner (Overhead) vs. Gross Revenuevs. Gross Revenue
Shown in Dollars ($)
19/3719/37 1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
Annual Gross SalesAnnual Gross Sales
Total Overhead Total Overhead vs. Gross Revenuevs. Gross Revenue
0%
10%
20%
30%
40%
50%
60%
Shown as a Percent (%)
20/3720/37 1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
Annual Gross SalesAnnual Gross Sales
Net Profit, Pre-tax Net Profit, Pre-tax vs. Gross Revenuevs. Gross Revenue
0%
5%
10%
15%
20%
25%
30%
Shown as a Percent (%)
21/3721/37 1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
Annual Gross SalesAnnual Gross Sales
Net Profit, Pre-Tax Net Profit, Pre-Tax vs. Gross Revenuevs. Gross Revenue
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Shown in Dollars ($)
22/3722/37 1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
Annual Gross SalesAnnual Gross Sales
Net Profit + Owner’s Salaries Net Profit + Owner’s Salaries vs. Gross Revenuevs. Gross Revenue
0%
5%
10%
15%
20%
25%
30%
35%
$0
$1,0
00,0
00
$2,0
00,0
00
$3,0
00,0
00
$4,0
00,0
00
$5,0
00,0
00
$6,0
00,0
00
$7,0
00,0
00
$8,0
00,0
00
$9,0
00,0
00
$10,
000,
000
Shown as a Percent (%)
23/3723/37 1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
Annual Gross SalesAnnual Gross Sales
Net Profit + Owner’s Salaries Net Profit + Owner’s Salaries vs. Gross Revenuevs. Gross Revenue
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$0
$1,0
00,0
00
$2,0
00,0
00
$3,0
00,0
00
$4,0
00,0
00
$5,0
00,0
00
$6,0
00,0
00
$7,0
00,0
00
$8,0
00,0
00
$9,0
00,0
00
$10,
000,
000
Shown in Dollars ($)
24/3724/37 1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
25/37
Step by Step by Step by Step by Step... Step...
Building Your Business:Building Your Business:
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
26/37 Definition
* Before Taxes* Before Taxes
1110% Owner/General 10% Owner/General
Manager Manager Compensation*Compensation*
Building Your Business:Building Your Business:
10% for Doing the Work of Running the
Company!
Definition
Step by Step by Step by Step by Step... Step...
EatingMoney
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
27/37 Definition
* Before Taxes* Before Taxes
1110% Owner/General 10% Owner/General
Manager Manager Compensation*Compensation*
EatingMoney
Building Your Business:Building Your Business:
10% for Doing the Work of Running the
Company!
Definition
Step by Step by Step by Step by Step... Step...
Examples of Owner/General Manager Compensation:
CashHospital InsuranceMedical ExpensesLease IncomeRetirement PlanOther BenefitsWagesPersonal RemodelingPersonal Income
Personal CommunicationsOrganization MembershipsHome Office ExpensesVehicle ExpensesDisability InsuranceLife InsuranceCredit CardsEntertainment
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
28/37 Definition
22
Building Your Business:Building Your Business:
10% Working10% WorkingCapitalCapital Working Capital =
(Current Assets - Current Liabilities)Short Term Money Available to the Business
Definition
1110% Owner/General 10% Owner/General
Manager Manager Compensation*Compensation*
Step by Step by Step by Step by Step... Step...
OperatingMoney
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
29/37
Sample Group of Real CompaniesSample Group of Real Companies
Working CapitalWorking Capital
($40,000)($40,000)
($20,000)($20,000)
$0$0
$20,000$20,000
$40,000$40,000
$60,000$60,000
$80,000$80,000
$100,000$100,000
$120,000$120,000
$140,000$140,000
$160,000$160,000
$180,000$180,000
10% of Gross Sales
Working Capital
Working Capital -------
Current Assets -
Current Liabilities10% of Gross Sales
is Desired.
Com
pan
y #1
Com
pan
y #1
Com
pan
y #2
Com
pan
y #2
Com
pan
y #3
Com
pan
y #3
Com
pan
y #4
Com
pan
y #4
Com
pan
y #5
Com
pan
y #5
Com
pan
y #6
Com
pan
y #6
Com
pan
y #7
Com
pan
y #7
Com
pan
y #8
Com
pan
y #8
Com
pan
y #9
Com
pan
y #9
Com
pan
y #1
0C
omp
any
#10
Com
pan
y #1
1C
omp
any
#11
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
30/37
22
Building Your Business:Building Your Business:
10% Working10% WorkingCapitalCapital
1110% Owner/General 10% Owner/General
Manager Manager Compensation*Compensation*
Step by Step by Step by Step by Step... Step...
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
31/37Definition
3310% Working10% Working
CapitalCapital
10% Net Profit 10% Net Profit (Stockholder(StockholderCompensation*)Compensation*)
22
1110% Owner/General 10% Owner/General
Manager Manager Compensation*Compensation*
Profit
Building Your Business:Building Your Business:
Bucket 3 is Profit for the
Owner(s)--You?
Definition
Step by Step by Step by Step by Step... Step...
31/3731/37
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
32/37Definition
3310% Working10% Working
CapitalCapital
10% Net Profit 10% Net Profit (Stockholder(StockholderCompensation*)Compensation*)
22
1110% Owner/General 10% Owner/General
Manager Manager Compensation*Compensation*
Profit
Building Your Business:Building Your Business:
Bucket 3 is Profit for the
Owner(s)--You?
Definition
Step by Step by Step by Step by Step... Step...
Examples of Stockholder Compensation:
Dividends
Profit or Loss Before
Taxes
32/3732/37 1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
33/37
10% & 10%10% & 10%10% & 10%10% & 10%
The Goal:The Goal:
WITHWITH
Fluctuating 10%Fluctuating 10%WorkingWorking CapitalCapital
WITHWITH
Fluctuating 10%Fluctuating 10%WorkingWorking CapitalCapital
(Current Assets - Current Liabilities)(Current Assets - Current Liabilities)
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
34/37
Owner/General Manager vs. Owner/General Manager vs. Stockholder CompensationStockholder Compensation
Direct Costs60%
OtherOverhead
Costs20%
Net Profit10%
Stockholder Stockholder CompensationCompensation
Owner/General Owner/General Manager Manager CompensationCompensation
10%
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
35/37
““If you are going to go broke...If you are going to go broke...Don’t work at it. Go to the Don’t work at it. Go to the beach.”beach.” --My Next Door Neighbor--My Next Door Neighbor
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
36/37
Your Expectations...Your Expectations...
1 /Name
2 /Name
3 /Name
Did the Seminar give you what you Did the Seminar give you what you wanted?wanted?
1-800-525-1009
BUSINESS
1-800-525-1009
BUSINESS
37/37
Our Business Networks Our Business Networks Team thanks you for the Team thanks you for the opportunity to be of opportunity to be of service to you and service to you and your company!!your company!!
Our Business Networks Our Business Networks Team thanks you for the Team thanks you for the opportunity to be of opportunity to be of service to you and service to you and your company!!your company!!
Please take a Please take a moment to fill out moment to fill out my Speaker Evaluation my Speaker Evaluation form now.form now.
