NCCET Webinar - Finance Essentials for Corporate and Continuing Education Leaders

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Description: Gain new insights into budget management and which reports and numbers you need to scrutinize.

Presenters: Kathy M. Walton, Ph.D., is the Executive Director of Customized Training at Austin Community College and Rob Clancy, Director, Corporate College, Polk Community College.

Published in: Education, Business
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NCCET Webinar - Finance Essentials for Corporate and Continuing Education Leaders

  1. 1. Finance Essentials for Corporate & Continuing Education Leaders Dr. Kathy Walton, Executive Director, Customized Training Austin Community College [email_address] (512) 223-7213   Rob Clancey, Director, Corporate College Polk State College [email_address] (863) 669-2321
  2. 2. Agenda <ul><li>Business Model </li></ul><ul><li>Financial Goals </li></ul><ul><li>Sources of Revenue </li></ul><ul><li>Pricing Strategies </li></ul><ul><li>Accountability </li></ul>It’s OK to Make $$$
  3. 3. Business Model <ul><li>Staffing </li></ul><ul><ul><li>Sales </li></ul></ul><ul><ul><ul><li>Educators vs Sales People </li></ul></ul></ul><ul><ul><li>Curriculum Development </li></ul></ul><ul><ul><ul><li>Vendors vs “DIY” </li></ul></ul></ul><ul><ul><li>Implementation </li></ul></ul><ul><li>Marketing and Sales </li></ul><ul><ul><li>Community Dynamics </li></ul></ul><ul><li>Financial Tracking </li></ul>
  4. 4. Financial Goals It’s OK to Make $ <ul><li>Current Information </li></ul><ul><ul><li>Review Financial Records </li></ul></ul><ul><ul><li>Track Sales </li></ul></ul><ul><li>Establish Profit Margin </li></ul><ul><ul><li>~40-50% </li></ul></ul><ul><li>Set Annual Revenue Goal </li></ul>
  5. 5. Revenue Sources It’s OK to Make $$ <ul><li>Sales </li></ul><ul><ul><li>Direct </li></ul></ul><ul><ul><li>Passive </li></ul></ul><ul><li>RFPs </li></ul><ul><ul><li>Stimulus Act </li></ul></ul><ul><ul><li>Workforce Boards </li></ul></ul><ul><ul><li>State/County/City Agencies </li></ul></ul><ul><li>Grants </li></ul>
  6. 6. Pricing Strategies It’s OK to Make $$$ <ul><li>Focus on Value Proposition </li></ul><ul><li>PCC Pricing Model </li></ul><ul><ul><ul><li>Flat Price $235.00/hour + materials </li></ul></ul></ul><ul><ul><ul><li>Instructors: $26.95-$85.00/hour </li></ul></ul></ul><ul><ul><ul><li>Minimum margin 64% </li></ul></ul></ul><ul><ul><li>Benefits </li></ul></ul><ul><ul><ul><li>Client Expectations Met </li></ul></ul></ul><ul><ul><ul><li>Fast—no delay in sales cycle </li></ul></ul></ul>
  7. 7. Pricing Strategies It’s OK to Make $$$$ <ul><li>ACC Pricing Model </li></ul><ul><ul><li>Factor in all costs </li></ul></ul><ul><ul><ul><li>Instructors: $36-$100/hour </li></ul></ul></ul><ul><ul><li>Include profit & bonus </li></ul></ul><ul><ul><li>Averages $250/hour </li></ul></ul><ul><ul><li>Benefits </li></ul></ul><ul><ul><ul><li>Consistent </li></ul></ul></ul><ul><ul><ul><li>Profit included in model insures results </li></ul></ul></ul><ul><li>Negotiations & Exceptions </li></ul>
  8. 8. Company:   Course Title: Interviewing Skills     Price Quote to Client (Sales REVENUE ) 3,400     Price per person 227 #DIV/0! #DIV/0! Assumptions:       No. of Different Modules 1     Hours per Module 8     No. times module(s) to be delivered 1     Number of Trainees 15     Course Contact Hrs 8 0 0 Instructor Rate/Hour $50     Textbook Cost Each       Workbook Cost Each $100     Eligible for CE enrollment? Y/N y     WECM Rate if applicable $4.01     Cost of Meal / breaks $8.00     Direct Expenses:       Total Instructor Wages incld fringe @ 2.75% 411 0 0 Workbook Total Cost 1,500 0 0 Additional Course Materials   0   Supplies Provided       Equipment / Software to be Purchased       Other, Customization, Design, or Contract Labor       Subtotal Direct Expenses for Markup 1,911 0 0 Other Direct Expenses       Textbook Total Cost 0 0 0 Total ACC Overhead Rate x Total Contact Hrs 240 0 0 Subtotal Other Direct Expenses 240 0 0 Total Direct Expenses 2,151 0 0 Calculating Target Price       1. Multiply desired markup X subtotal direct expenses for markup 3,058 0 0 2. Enter -- Subtotal Other Direct Expenses 240 0 0 3. Markup Price = sum of #1 + #2 above 3,298 0 0 4. Bonus 165 0 0 5. Catering Arrangements:       Number of Days for Meals & Breaks       Total Dining Costs $0.00 $0.00 $0.00 6. Target Price (Sum of #3, #4 & #5 above) $3,297.60 $0.00 $0.00 Surplus Revenue aka Profit (Quoted Price - Total Direct Expenses) $1,084.12 $0.00 $0.00 Financial Ratio for Comparison Gross Margin Percentage or Profit Margin = (Profit / Price) x 100 32% #DIV/0! #DIV/0! GOAL: 30-40% To Include WECM Contributions for Your Records:
  9. 9. Accountability It’s OK to Make $$$$ <ul><li>Performance: Track Team/Individual Goals </li></ul><ul><li>Track contracts, financial records </li></ul><ul><ul><li>Pipeline Report </li></ul></ul><ul><ul><li>Monthly/quarterly Trends </li></ul></ul><ul><ul><li>Track Sales per Individual </li></ul></ul><ul><ul><li>Institutional Records (Revenues, expenses, Profit) </li></ul></ul><ul><ul><ul><li>Reconcile Results </li></ul></ul></ul><ul><li>Rewards </li></ul>What gets measured, gets managed!
  10. 10. May--2009 Sales By Account Executive Top Sales Executive: Marie!!! @ $35,950 Total May Sales: $125,748 Accumulative Sales: $826,834 Current Status: 167% of monthly Goal 91.8% of annual Goal (75% of time) Team Monthly Goal: $75,000 Ind Monthly Goal: $25,000 Annual Goal: $900,000 % of Goal Goal
  11. 11. Conclusion <ul><li>Business Model </li></ul><ul><li>Financial Goals </li></ul><ul><li>Sources of Revenue </li></ul><ul><li>Pricing Strategies </li></ul><ul><li>Accountability </li></ul>It’s OK to Make $$$$
  12. 12. Finance Essentials for Corporate & Continuing Education Leaders Q & A
  13. 13. Finance Essentials for Corporate & Continuing Education Leaders Dr. Kathy Walton, Executive Director, Customized Training Austin Community College [email_address] (512) 223-7213   Rob Clancey, Director, Corporate College Polk State College [email_address] (863) 669-2321

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