Tom Shay, CSP Certified Speaking Professional

How much of your personal money will you need? How much money will you need to borrow? At what interest rate? How much is the current owner going to finance? At what interest rate? Let’s buy a business today

How much of your personal money will you need?

How much money will you need to borrow?

At what interest rate?

How much is the current owner going to finance?

At what interest rate?

How much does your business need to earn to repay that money? Do you see anything missing from this calculation? (Don’t turn the page, yet!) How much…

How much does your business need to earn to repay that money?

Do you see anything missing from this calculation?

(Don’t turn the page, yet!)

What interest rate are you expecting for your money invested in the business? Have you thought about the rate you are currently earning with your business? A missing question?

What interest rate are you expecting for your money invested in the business?

Have you thought about the rate you are currently earning with your business?

What can we do starting today, to greatly affect your return on investment? Use the FREE Return on Investment calculator at profitsplus.org If not starting a business today, what about your business starting today? The clock starts today

What can we do starting today, to greatly affect your return on investment?

Use the FREE Return on Investment calculator at profitsplus.org

If not starting a business today, what about your business starting today?

Total sales Percentage of credit sales Cost of goods sold Operating expenses Tax rate percentage Average inventory on hand We need this info:

Total sales

Percentage of credit sales

Cost of goods sold

Operating expenses

Tax rate percentage

Average inventory on hand

Average accounts receivable Other current term assets (cash) Long term assets Current liabilities (<12 months) Long term liabilities (>12 months) We need this info:

Average accounts receivable

Other current term assets (cash)

Long term assets

Current liabilities (<12 months)

Long term liabilities (>12 months)

Total sales: $875,000 Percentage of credit sales: 12% Cost of goods sold: $450,000 Operating expenses: $320,000 Tax rate: 20% Average inventory on hand: $180,000 Business one

Total sales: $875,000

Percentage of credit sales: 12%

Cost of goods sold: $450,000

Operating expenses: $320,000

Tax rate: 20%

Average inventory on hand: $180,000

Average accounts receivable: $11,500 Other current term assets: $14,000 Long term assets: $175,000 Current liabilities: $23,000 Long term liabilities: $125,000 Business one

Average accounts receivable: $11,500

Other current term assets: $14,000

Long term assets: $175,000

Current liabilities: $23,000

Long term liabilities: $125,000

Gross margin %: 48.57% Operating expense %: 36.57% Net profit %: 9.60% Inventory turnover: 2.50 Our observations of #1

Gross margin %: 48.57%

Operating expense %: 36.57%

Net profit %: 9.60%

Inventory turnover: 2.50

A/R collection days: 39.43 Return on assets: 22.08% Financial leverage: 1.64 Return on investment: 36.13% Are you pleased with these? Our observations of #1

A/R collection days: 39.43

Return on assets: 22.08%

Financial leverage: 1.64

Return on investment: 36.13%

Are you pleased with these?

Total sales: $875,000 (same as #1) Percentage of credit sales: 12% (same) Cost of goods sold: $460,000 ($450,000) Operating expenses: $340,000 ($320,000) Tax rate: 20% (same) Average inventory on hand: $250,000 ($180,000) Business two

Total sales: $875,000 (same as #1)

Percentage of credit sales: 12% (same)

Cost of goods sold: $460,000 ($450,000)

Operating expenses: $340,000 ($320,000)

Tax rate: 20% (same)

Average inventory on hand: $250,000 ($180,000)

Average accounts receivable: $19,500 ($11,500) Other current term assets: $14,000 ($7,000) Long term assets: $175,000 (same) Current liabilities: $23,000 (same) Long term liabilities: $125,000 (same) Business two

Average accounts receivable: $19,500 ($11,500)

Other current term assets: $14,000 ($7,000)

Long term assets: $175,000 (same)

Current liabilities: $23,000 (same)

Long term liabilities: $125,000 (same)

Gross margin %: 47.43% (48.57%) Operating expense %: 38.86% (36.57%) Net profit %: 6.86% (9.60%) Inventory turnover: 1.84 (2.50) Our observations of #2

Gross margin %: 47.43% (48.57%)

Operating expense %: 38.86% (36.57%)

Net profit %: 6.86% (9.60%)

Inventory turnover: 1.84 (2.50)

A/R collection days: 42.23 (39.43) Return on assets: 13.29% (22.08%) Financial leverage: 1.49 (1.64) Return on investment: 19.77% (36.13%) Are you pleased with these? Our observations of #2

A/R collection days: 42.23 (39.43)

Return on assets: 13.29% (22.08%)

Financial leverage: 1.49 (1.64)

Return on investment: 19.77% (36.13%)

Are you pleased with these?

36.13% vs 19.77% r.o.i. $84,000 vs $50,000 profit Have these two businesses differentiated themselves? Bottom line difference

36.13% vs 19.77% r.o.i.

$84,000 vs $50,000 profit

Have these two businesses differentiated themselves?

Ever been bitten by an elephant? Ever been bitten by a mosquito? Ever been bitten by a no-see-em? It is the little things that get you! In business it is the little things that make a difference! Bottom line difference

Ever been bitten by an elephant?

Ever been bitten by a mosquito?

Ever been bitten by a no-see-em?

It is the little things that get you!

In business it is the little things that make a difference!

There is no business like show business. But there are several businesses like accounting. David Letterman

Final Note This presentation will be specialized to your industry and your attendees’ specific needs. For more information about having Tom present for you, contact us at (727)464-2182 or visit our website: www.profitsplus.org

This presentation will be specialized to your industry and your attendees’ specific needs.

For more information about having Tom present for you, contact us at (727)464-2182 or visit our website: www.profitsplus.org