Maximizing Profits, Successfully Executing
Business Strategies
VAAS Professionals, LLC
UNDERSTAND THE BASIC FINANCIAL STATEMENTS
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UNDERSTANDING THE BASIC FINANCIAL STATEMENTS
Income Statement
Balance Sheet
Statement of Retained Earnings
Statement
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Cash Flow Statement
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HOW CAN I MAXIMIZE MY PROFITS AS A
BUSINESS OWNER
HOW CAN I MAXIMIZE MY PROFITS?
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Manage by the numbers Utilize a “real-time”
reporting system
A business owner
who is actively
working to
maximize profits
should:
Be vigilant everyday
MANAGE BY THE NUMBERS
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MANAGE BY THE NUMBERS
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Pay Yourself
Based on the results of
the company,
remember to pay
yourself.
Business Plan
Continue to evolve by
reassessing your
business plan regularly.
Your Staff
Hire the best staff who
believe in your vision
and re-evaluate your
staff accordingly.
Accountability
Hold yourself
accountable to a board
of trusted advisors.
SMALL BUSINESS FINANCIAL RATIOS
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5 SMALL BUSINESS RATIOS FOR A HEALTHY, GROWING BUSINESS
Profit Margin
Ratio
Grow profit
margin ratio
Quick Ratio Current Ratio
Return on
Investment
(ROI) Ratio
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2 MARGIN RATIOS TO ALWAYS CONSIDER
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MARGIN RATIOS TO CONSIDER
Gross Profit Margin
Money you have from
sales after subtracting
the cost of goods sold
(COGS).
Profit Margin Ratio
Earning after deducting
all expenses.
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GROSS PROFIT =
(Revenue - COGS)Revenue
PROFIT MARGIN=
(Revenue - Expenses)Revenue
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SHORT & LONG TERM RATIOS TO CONSIDER
SHORT & LONG TERM RATIOS
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Quick Ratio
Your company’s ability
to meet short-term
financial obligations.
Profit Margin Ratio
Earning after deducting
all expenses.
QUICK RATIO =
(Cash + Marketable Securities + A/R)
OR
(Current Assets - Inventory)
Current Liabilities
CURRENT RATIO=
Current AssetsCurrent Liabilities
Current Liabilities
STRATEGIES TO MAKE YOUR CASH FLOW MORE
PREDICTABLE
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PREDICT YOUR CASH FLOW
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Keep a rolling 120-day
cash flow forecast.Refine your forecast
model with time.
Maintain longer-termed
contracts/clients.Give yourself a longer
“notice” period.
Plan for external factors
that impact your sales
or expenses.
HOW TO KEEP YOUR FOOT ON FIRST BASE
WHILE STEALING SECOND?
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YOUR SUCCESSION PLAN
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Maximize your Practice
Value
Identify Due Diligence
Steps for the Transition
Learn about Practice
Valuation