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What are the Real Numbers? Setting Realistic Goals Based on Real Numbers!

Join the seminar to gain a different perspective on setting goals based on real numbers. Learn from industry experts and participate in hands-on activities to achieve significant results for your personal and corporate success.

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What are the Real Numbers? Setting Realistic Goals Based on Real Numbers!

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  1. What are the Real Numbers?Setting Realistic Goals Based on Real Numbers! By Les Cunningham CGC, CR*, CCR*, CGRa http://www.businessnetworks.com *A NARI Certification

  2. Your Expectations... 1 /Name 2 /Name 3 /Name What are your expectations of this seminar from what’s been advertised? (Need a Volunteer)

  3. Basis of my information: It will offer you a different perspective thatmay lead to significant results for you personally and corporately. • Business Networkswith 200+ companies! • a: Hands-on review of their numbers • b: Participation in the major associations • c: One-on-One consulting • d: Owned and operated my own business • for 15 years • e: Won 15 C.O.T.Y. awards in a 7 year period.

  4. $60,000,000 Lottery Priest Tennis Player DKI Member

  5. Systems • Budget • Marketing • Sales • Pass the Baton • Commission Paid fromProduced Gross Profit • Production • Pass the baton • Job Costing • Incentive System • Beat the Budget • Paid out of net profit above 10%

  6. What is the Time Frame? 50 Hours Max!

  7. Common Income Comparison 1999 Business NetworksIndustry Averages (Refer to Handouts #1 & #2)

  8. Crucial Data The Leading Indicators of the Health of your Business. 8/37

  9. Crucial Data The Leading Indicators of the Health of your Business. 9/37

  10. Real Numbers The following charts are from the same 66 companies shown on Handout #1.

  11. This dotindicates thatthis companyhas Annual Sales of approximately $900,000 and theexpense is equal to 5% of Sales. The calculated trend lineindicates the general trend as companies’ sales increase. Each dot Represents a Company Real Numbers Example Expense Item: Annual Gross Sales

  12. Building Materials (Direct Cost) vs. Gross Revenue Shown as a Percent (%) Annual Gross Sales 14/37

  13. Payroll - Labor (Direct Cost) vs. Gross Revenue Shown as a Percent (%) Annual Gross Sales 15/37

  14. Subcontractor Costs (Direct Cost) vs. Gross Revenue Shown as a Percent (%) Annual Gross Sales 16/37

  15. Actual Gross Profit vs. Gross Revenue Shown as a Percent (%) Annual Gross Sales 17/37

  16. Payroll – Owner (Overhead) vs. Gross Revenue Shown as a Percent (%) Annual Gross Sales 18/37

  17. Payroll – Owner (Overhead) vs. Gross Revenue Shown in Dollars ($) Annual Gross Sales 19/37

  18. Total Overhead vs. Gross Revenue Shown as a Percent (%) Annual Gross Sales 20/37

  19. Net Profit, Pre-tax vs. Gross Revenue Shown as a Percent (%) Annual Gross Sales 21/37

  20. Net Profit, Pre-Tax vs. Gross Revenue Shown in Dollars ($) Annual Gross Sales 22/37

  21. Net Profit + Owner’s Salaries vs. Gross Revenue Shown as a Percent (%) Annual Gross Sales 23/37

  22. Net Profit + Owner’s Salaries vs. Gross Revenue Shown in Dollars ($) Annual Gross Sales 24/37

  23. Step by Step by Step... Building Your Business:

  24. 10% for Doing the Work of Running the Company! Building Your Business: 1 Step by Step by Step... EatingMoney 10% Owner/General Manager Compensation* * Before Taxes

  25. Examples of Owner/General Manager Compensation: Cash Hospital Insurance Medical Expenses Lease Income Retirement Plan Other Benefits Wages Personal Remodeling Personal Income Personal Communications Organization Memberships Home Office Expenses Vehicle Expenses Disability Insurance Life Insurance Credit Cards Entertainment 10% for Doing the Work of Running the Company! Building Your Business: 1 Step by Step by Step... EatingMoney 10% Owner/General Manager Compensation* * Before Taxes

  26. 1 10% Owner/General Manager Compensation* Definition Working Capital = (Current Assets - Current Liabilities)Short Term Money Available to the Business Building Your Business: OperatingMoney Step by Step by Step... 2 10% Working Capital

  27. Working Capital -------Current Assets - Current Liabilities Sample Group of Real Companies Working Capital $180,000 10% of Gross Sales is Desired. $160,000 $140,000 $120,000 Working Capital $100,000 10% of Gross Sales $80,000 $60,000 $40,000 $20,000 $0 ($20,000) Company #3 Company #4 Company #5 Company #6 Company #8 Company #9 Company #10 Company #1 Company #11 Company #2 Company #7 ($40,000)

  28. 1 10% Owner/General Manager Compensation* Building Your Business: Step by Step by Step... 2 10% Working Capital

  29. 1 2 3 Bucket 3 is Profit for the Owner(s)--You? Step by Step by Step... Building Your Business: 10% Owner/General Manager Compensation* Profit 10% Working Capital 10% Net Profit (Stockholder Compensation*) 31/37

  30. Examples of Stockholder Compensation: 1 Dividends Profit or Loss Before Taxes 2 3 Bucket 3 is Profit for the Owner(s)--You? Step by Step by Step... Building Your Business: 10% Owner/General Manager Compensation* Profit 10% Working Capital 10% Net Profit (Stockholder Compensation*) 32/37

  31. The Goal: 10% & 10% WITH Fluctuating 10%WorkingCapital (Current Assets - Current Liabilities)

  32. Direct Costs 60% Owner/General Manager vs. Stockholder Compensation Stockholder Compensation Net Profit 10% Other Overhead Costs 20% Owner/General Manager Compensation 10%

  33. “If you are going to go broke...Don’t work at it. Go to the beach.”--My Next Door Neighbor

  34. Your Expectations... 1 /Name 2 /Name 3 /Name Did the Seminar give you what you wanted?

  35. Our Business Networks Team thanks you for the opportunity to be of service to you and your company!! Please take a moment to fill out my Speaker Evaluation form now.

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