1. What I Didn’t Learn at
Accounting School
Presented by: Chris Hooper
@ChrisHooper87 @CirilloHooper #1DayMBA
2. @ChrisHooper87 @CirilloHooper #1DayMBA
Disclaimer
This presentation is intended to provide general
information only and has been prepared without
taking into account any particular person's
objectives, financial situation or needs. You should,
before acting on this information, consider the
appropriateness of this information having regard to
your personal objectives, financial situation or
needs. It is recommended that you obtain tax and
financial advice from a qualified professional before
making any taxation, investment or insurance
decision.
5. @ChrisHooper87 @CirilloHooper #1DayMBA
The Importance of Cashflow:
Profit and Loss Sucks
• Prepared on an accrual basis
• Doesn’t tell the “real” story of what’s
going on
• It tells you what happened, not what’s
happening
7. @ChrisHooper87 @CirilloHooper #1DayMBA
How to Improve Cashflow:
Tips
• Pour the water faster:
▫ Get paid quicker (deposits, direct debit etc)
▫ Get more sales
• Constrict the flow:
▫ Cutting costs
▫ Creditor stretching
▫ Budget and cashflow management
8. @ChrisHooper87 @CirilloHooper #1DayMBA
How to Improve Profitability:
Hypothetical
• Imagine you own a used car dealer:
▫ Your turnover $500,000 per annum
▫ Your costs are $450,000 per annum
▫ Your profit is $50,000 per annum (10%)
• I want you to improve profit to $200,000
9. @ChrisHooper87 @CirilloHooper #1DayMBA
How to improve profitability:
The Numbers
Number of Enquiries 100 Enquiries
x Conversion % x 50%
x Average Sale x $10,000
= Gross Revenue = $500,000
- Costs - $450,000
= Profit = $50,000
10. @ChrisHooper87 @CirilloHooper #1DayMBA
How to Improve Profitability:
Just add 10%
100 Enquiries 110 Enquiries
x 50% Conversion x 55% Conversion
x $10,000 Sale Value x $11,000 Sale Value
= $500,000 Revenue = $665,500 Revenue
- $450,000 Costs - $405,000 Costs
= $50,000 Profit = $260,500 Profit
11. @ChrisHooper87 @CirilloHooper #1DayMBA
How to Improve Profitability
Ideas
• Enquiries
▫ Marketing
▫ Advertising
• Conversion
▫ Sales training
▫ Sales scripts
• Sales Value
▫ Bump your prices up / Stop discounting
▫ Add more value
• Costs
▫ Drive efficiency
▫ Zero Based budget review
12. @ChrisHooper87 @CirilloHooper #1DayMBA
Personal Finance Hacks:
Parkinson’s Law
• Cyril Parkinson - Economist 1955
▫ “Work expands so as to fill the time available for its
completion.”
• “Parkinson’s Second Law”
▫ “Expenditures rise to meet income"
• It’s human nature to spend exactly what one earns
▫ As such, as income rises so do living expenses
• Drive a wedge between your income and
expenditure
13. @ChrisHooper87 @CirilloHooper #1DayMBA
Personal Finance Hacks:
Eliminate the need for discipline
• Don’t feel bad
▫ Saving is a rare quality possessed by a small few
• Automate the process
▫ Eliminate the discretion
• Make it illegal to access
▫ Superannuation
▫ First Home Saver Accounts
• Make it difficult to access
▫ Property
▫ Password splitting
▫ Debit blocking
14. @ChrisHooper87 @CirilloHooper #1DayMBA
Personal Finance Hacks:
Start now, not later
• Compound interest is one of the most powerful
forces of the face of the earth!
$10,000 5% 10% 15%
20 $90,000 $729,000 $5,388,000
30 $55,000 $281,000 $1,332,000
40 $34,000 $108,000 $329,000
50 $21,000 $42,000 $81,000
60 $13,000 $16,000 $20,000
15. @ChrisHooper87 @CirilloHooper #1DayMBA
That’s all folks…
• Thanks for listening
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