WHEN: Thursday July 10, 2014
WHERE: Martha & Mary, Poulsbo
We all want to build a sustainable business that provides a return on our (or our owners’ investment). So, how much profit does it take to produce the real returns that you not only desire, but also require? The first step in the process is to answer the question: what is your breakeven sales annually, monthly and even daily? We will all first go through our Profit and Loss Statements to determine how our expenses “behave.” We will separate out our variable and fixed costs and then calculate the answer to the breakeven question. With this new structure we will be able to have a better understanding of which costs need to be focused on to improve the bottom line.
But nobody wants to just break even! We will also now be in position to project the future and determine useful strategies.
We all want to build a sustainable business that provides a return on our (or our owners’ investment). So, how much profit does it take to produce the real returns that you not only desire, but also require? The first step in the process is to answer the question: what is your breakeven sales annually, monthly and even daily? We will all first go through our Profit and Loss Statements to determine how our expenses “behave.” We will separate out our variable and fixed costs and then calculate the answer to the breakeven question. With this new structure we will be able to have a better understanding of which costs need to be focused on to improve the bottom line.
But nobody wants to just break even! We will also now be in position to project the future and determine useful strategies.
MEMBERS:
Members arrive at 7:45am for breakfast and Member check-in.
MEMBER CANDIDATES:
Member Candidates are invited to attend the event from 7:45am-12pm as their schedule permits.
- Breakfast at 7:45am
- Check-in at 8:00am
- Workshop from 9:00am- 10:45am
- Member issues from 11:00am- 12:00pm
Please RSVP to Michele Bosworth by June 30, 2014, regarding your attendance. Please include what portion of the meeting you will attend so we can make arrangements for breakfast and materials.
EMPLOYEE GUESTS: RSVP BY JUNE 30TH
Employee Guests are invited to the workshop from 9:00am - 10:45am (please arrive by 8:50am and wait in the lobby to be brought into the room.)
HOST:
Chad Solvie of Martha & Mary
WHERE WE WILL MEET:
Martha & Mary; 19160 Front Street NE, Poulsbo WA 98370
MEMBERS:
Members arrive at 7:45am for breakfast and Member check-in.
Member Candidates are invited to attend the event from 7:45am-12pm as their schedule permits.
- Breakfast at 7:45am
- Check-in at 8:00am
- Workshop from 9:00am- 10:45am
- Member issues from 11:00am- 12:00pm
Please RSVP to Michele Bosworth by June 30, 2014, regarding your attendance. Please include what portion of the meeting you will attend so we can make arrangements for breakfast and materials.
EMPLOYEE GUESTS: RSVP BY JUNE 30TH
Employee Guests are invited to the workshop from 9:00am - 10:45am (please arrive by 8:50am and wait in the lobby to be brought into the room.)
Chad Solvie of Martha & Mary
WHERE WE WILL MEET:
Martha & Mary; 19160 Front Street NE, Poulsbo WA 98370
Martha & Mary; 19160 Front Street NE, Poulsbo WA 98370
Click HERE for a map and Google Directions
TITLE OF WORKSHOP:
How to Use Your Numbers to Make Better Complex Financial Decisions
How to Use Your Numbers to Make Better Complex Financial Decisions
AGENDA:
Click here for the agenda.
QUESTIONS CEO'S SHOULD BE ASKING
AGENDA:
Click here for the agenda.
- How much profit do I need to reinvest in my company?
- How much profit do I need to pay back additional long term debt?
- How much profit do I need form y bonus and/or retirement plans?
- If I hire additional staff what will I need insoles to cover their costs and make more profit?
- If I add on to my building (take on more space or open a new location) what will I need in increased sales to make that a good investment?
TAKEAWAYS
- What does my company's cost structure really look like
- How can I use this knowledge to make better decisions for the future around issues such as: pricing, expense control and investments in projects, equipment and people
- Learn how targeting a specific profit to determine your sales goals.
PREPARATION: DUE JUNE 30TH
There are some key steps to complete beforehand to help you get the most out of this workshop: get familiar with the concept of breakeven, determine which of your expenses are fixed versus variable, and use that info to fill in the Questionnaire part of the worksheet. Your workshop presenter, Steve Abercrombie, will review the rest in class. The end goal: gain a great tool for better decisions using your own numbers!
1. First, read the handout, Guide to Breakeven Plus. It will give you some background on breakeven analysis and walk you through some sample case studies.
2. Second, enter your sales and expense numbers into the 2014 Breakeven Calculator. Click to open the 2014 Breakeven Calculator and download it by clicking on the download button that appears on your screen. Fill in the document and click save.
You will find detailed instructions for how to do so on the first worksheet entitled “Instructions.” You will enter your own numbers on the Questionnaire worksheet. You will need:
- Current month–end Profit and Loss Statement
- Year-to-Date Profit and Loss Statement
- The number of invoices/jobs and/or active customers for those same time periods
3. You will first need to decide which expenses are fixed and which are variable (that’s where reading the guide first will come in handy). Because this work will take us beyond breakeven and into future “what-if” analysis, you might have to do some consolidation if you have a lot of expense categories. Once you get done entering your numbers, you are welcome, but not required, to practice doing breakeven analysis on the Calculator worksheet.
4. Once you are finished, please print the Questionnaire and the Calculator pages and bring them with you to class.
5. Save the worksheet using your company name and email it as an attachment to Michele Bosworth at michelebosworth@excellpugetsound.com by June 30.
We estimate that it will take you about one hour to read the materials and about 1-2 hours to fill out the Questionnaire worksheet. Some of you will want to work with your CPA/bookkeeper/CFO on this project and to invite them (along with your other key team members), to attend the July CEO workshop with you.Please be sure to read the handout guide yourself, though, so you are personally familiar with the concepts.
Steve won’t be sharing anyone’s individual financial data with the other members in the workshop. But, if you are willing to let him use your worksheet and calculator pages in class as a “live” case study, let me know when you return your pre-work and Steve will be in touch with you before the workshop.
Questions? Don’t get stuck! Contact Steve directly at 360.320.8770 or steve.abercrombie@profitsoup.com. He will be happy to help!
You will find detailed instructions for how to do so on the first worksheet entitled “Instructions.” You will enter your own numbers on the Questionnaire worksheet. You will need:
PRESENTER: STEVE ABERCROMBIE
Steve brings passion and personality to company financial strategies. His life experiences as a banker, financial educator and business owner have shown him that having financial knowledge of your business model is in many cases the absolute key to success. His clients all say that Steve excels at taking the mystery out of the numbers with his common-sense approach and always-compassionate personal style.
He has a talent for rallying the troops behind improvement initiatives by organizing, understanding and appropriately communicating the financial story of the business to the management team and key staff. Then he integrates this connection to financial success with ongoing structure and support around company goals and strategic steps. With key players aligned and focused, everybody accomplishes more.
Steve has helped many clients prepare their businesses for the financial scrutiny of lenders and investors when financial restructuring or expansion is imminent. He understands the language of lending from his years in banking, where he has held roles from branch manager and lender to bank President and CEO. As President and principal of a leading financial training company, he mastered business expansion from the other side of the desk – with the perspective of owner and rain maker. He gained notoriety as a sought-after convention speaker for graduate schools of banking, corporations and associations throughout the US, Australia and England.
Steve’s clients include Choice Hotels, ProSource Floor Coverings, Graduate School of Banking of the South and Bright Star Franchising,
“I have had the good fortune to work with Steve Abercrombie at both ProSource and BrightStar. Both times, he provided these companies with top-shelf financial literacy training for our franchisees. I have found Steve to be not only well versed in financial management, but able to easily convey concepts to franchisees. His breadth of knowledge and ability to make financial concepts "real world" for franchisees is one of the things I most appreciate about Steve.”
“Steve is exceptional at taking complex financial information and terms, and making it easy for people understand and use. Steve is one of the best professional speakers I've ever heard. Interesting, captivating and helps the audience truly understand and apply what he is talking about.”
PRESENTER: STEVE ABERCROMBIE
Steve brings passion and personality to company financial strategies. His life experiences as a banker, financial educator and business owner have shown him that having financial knowledge of your business model is in many cases the absolute key to success. His clients all say that Steve excels at taking the mystery out of the numbers with his common-sense approach and always-compassionate personal style.
He has a talent for rallying the troops behind improvement initiatives by organizing, understanding and appropriately communicating the financial story of the business to the management team and key staff. Then he integrates this connection to financial success with ongoing structure and support around company goals and strategic steps. With key players aligned and focused, everybody accomplishes more.
Steve has helped many clients prepare their businesses for the financial scrutiny of lenders and investors when financial restructuring or expansion is imminent. He understands the language of lending from his years in banking, where he has held roles from branch manager and lender to bank President and CEO. As President and principal of a leading financial training company, he mastered business expansion from the other side of the desk – with the perspective of owner and rain maker. He gained notoriety as a sought-after convention speaker for graduate schools of banking, corporations and associations throughout the US, Australia and England.
Steve’s clients include Choice Hotels, ProSource Floor Coverings, Graduate School of Banking of the South and Bright Star Franchising,
“I have had the good fortune to work with Steve Abercrombie at both ProSource and BrightStar. Both times, he provided these companies with top-shelf financial literacy training for our franchisees. I have found Steve to be not only well versed in financial management, but able to easily convey concepts to franchisees. His breadth of knowledge and ability to make financial concepts "real world" for franchisees is one of the things I most appreciate about Steve.”
Bob Lange, Vice President of Field Support, Bright Star Franchising
“Steve is exceptional at taking complex financial information and terms, and making it easy for people understand and use. Steve is one of the best professional speakers I've ever heard. Interesting, captivating and helps the audience truly understand and apply what he is talking about.”
