Northern Anne Arundel County Chamber Balancing Finances During Emotional Times

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Presentation to small business profesionals and those consulting to small businesses.

Presentation to small business profesionals and those consulting to small businesses.

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  • 1. Northern Anne Arundel County Chamber of Commerce “Balancing Finances During Emotional Times” Tuesday, June 15, 2010 presented by Kelly Leonard Taylor-Leonard Corporation
  • 2. What Executives Are Thinking “Maybe we should … diversify our product and/or consider lowering service offerings.” our labor costs (outsourcing, off- shoring).” identify ways to collect receivables faster.” slash operating costs by closing/consolidating offices.” 2
  • 3. We Will Discussion …  Financial Measurement & Management  Strategies to Achieve Market Growth  Ways to Work Through a Business Slowdown  Effective Ways to Reduce Business Costs 3
  • 4. Financial Measurement & Management Three important financial measurement tools are: 1. Balance Sheet, 2. Profit and Loss / Income Statement and 3. Cash Flow Statement – Cash is king! MASTER THE FUNDAMENTALS & CONSIDER DRIVERS Activity-Based Costing (ABC)  Isolates the cause and effect relationships to objectively assign costs to each product/customer  Magnifies high overhead costs per unit (cost drivers)  Helps to control the costs at an individual level and departmental level  Isolates unnecessary costs  Helps fixing price of product/service scientifically 4
  • 5. Strategies to Achieve Market Growth • Create New Income Streams  Teaming / Partnerships (leverage Chamber relationships)  Complementary products and services  New ways to sell and promote current products  Creative pricing • Acquire Small Business Designations & Identify Opportunities  Minority Business Enterprise (MBE)  Disadvantaged Business Enterprise (DBE)  Local Small Disadvantaged Business Enterprise (LSDBE)  8(a)  Veterans, Service-Disabled Veterans  HubZone  Women 5
  • 6. Working Through a Business Slowdown • Have reserve capital (not just cash, could be strong receivables) . • Focus on retaining your customers. Increase customer loyalty by  Finding out customer needs  Emphasizing your value proposition & services offered  Offering discounts, samples & giveaways • Segment customers  High margin – continue building loyalty (help them to help their customers)  Acceptable margin – up-sell and cross-sell  Low margin – shed these Receivables acceleration (incentives, reciprocity, payment terms, factoring) 6
  • 7. Working Through a Business Slowdown • Get outside help.  Use consultants  Leverage banking relationships  Emulate successful competitors ~ Avoid mistakes of others • Learn more about & take advantage of government stimulus.  Access to working capital  Owner-occupied commercial real estate refinancing  Microloan programs 7
  • 8. Working Through a Business Slowdown • Change your own role. Focus on being a financial architect and strategic thinker. • Socialize/Network.  Leverage Chamber membership & referral groups  Define a social networking strategy 8
  • 9. Effectively Reducing Business Costs • Tap into alternate sources of human capital. Diverse and plentiful talent pool. • Barter goods & services • Renegotiate  Landlord  Banker  Suppliers & vendors (change fixed fee  performance based contacts) Reduce/Eliminate ancillary, non-core fees • Manage your inventory  Buy wholesale/bulk  Trim inventories 9
  • 10. Effectively Reducing Business Costs • Improve processes  Lean Thinking – focus on eliminating waste and increasing customer value (adding value = generating revenue)  New payment methods  Reduce collections cycle time  Replace paper-based invoicing  electronic/paperless • Borrow/Rent business equipment. • Plan Ahead. Make purchases of supplies when they go on sale, in advance of your need. • Search. New suppliers, lower prices, and better quality. 10
  • 11. "Finish each day and be done with it. You have done what you could. Some blunders and absurdities no doubt crept in; forget them as soon as you can. Tomorrow is a new day; begin it well and serenely and with too high a spirit to be encumbered with your old nonsense." - Ralph Waldo Emerson 11
  • 12. Contact Us Kelly Leonard, CPA, CITRMS Group Benefits Specialist & Small Business Consultant Bus. (240) 683.6336 | Mobile. (240) 994.4861 kelly.leonard@taylor-leonard.com www.workforcecare.com | www.gosmallbiz.com 12
  • 13. About Kelly Leonard Kelly Leonard received her bachelor's in Accounting from Virginia Commonwealth University in Richmond. She is a Certified Public Accountant (CPA) and Certified Identity Theft Risk Management Specialist (CITRMS). Kelly’s finance, accounting, and risk management experience spans more than 19 years; encompassing federal government, private and public accounting environments, to include Fortune 100 companies with specialization in internal audit, healthcare, and financial services. Her extensive client list includes such recognized organizations as Blue Cross/Blue Shield Association, Kaiser Permanente, and the World Bank. Kelly oversees the Risk Management practice of Taylor-Leonard Corporation (T-LC); a family-owned information technology and risk management consulting practice. Although T-LC’s client list includes nationally recognized non-profit organizations as well as large publicly traded organizations, Kelly’s passion rests ultimately with helping small to medium size businesses to protect and grow their enterprise. Kelly maintains professional affiliations with The Institute of Fraud Management and Gaithersburg-Germantown Chamber of Commerce. She also serves as Past President for Stedwick Elementary School’s Parent-Teacher Association, volunteers regularly within her community, and is an active member at Church of the Redeemer in Gaithersburg, Maryland. 13