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Orb3 13
- 1. Cameron Dasté Tomoki Lam Erik Kivimaki
- 4. Deliverables Financial Evaluations New Market Entry Online Presence
- 5. Yearly Income Statement Income Statement Analysis 2009 2010 2011 2012 2013 Revenue $3,160,819.54 $2,047,721.50 $1,194,990.17 $1,756,564.68 $3,541,186.77 Expense $3,069,354.24 $2,269,677.20 $1,550,381.29 $2,115,384.92 $3,373,160.71 Total Profit $91,465.30 -$221,955.70 -$355,391.12 -$358,820.24 $168,026.06 Break Even = $3,373,160.71
- 6. Financial Ratios • 20.67 • Industry Standard = 1.34 Debt to Equity • .08 Current Ratio • 4.94 • Industry Standard = 7.8 ROE
- 7. Accounts Payable & Accounts Receivable 2013 A/P $518,713.60 2013 A/R $117,636.73
- 8. Accounts Aging Reports A/R Aging Reports Industry Standard Collection = 90 Days 29% Over 90 Days Over $32K A/P Aging Reports 85% Over 90 Days 65% Over 150 Days Default Issues
- 9. This Leads to… A/R < A/P Negative WC Negative Correlation between CF and NI Bankruptcy Potential • Unable to meet debt obligations
- 10. Financial Recommendations Cut Expenses Raise Additional Capital Renegotiate agreement with BCE Engineers
- 11. Renegotiation BCE Contract for Debt payments Keep 50% for operations
- 12. Expenses to Cut • Look into alternative office space in the South Sound Lease • Pay cuts Employee Salaries Further Overhead Cost Reductions
- 13. Lease Lease Savings Monthly CostAnnual Cost $ per square feet # of Listings Current Lease - 6,650 sqft $14,408.33 $172,899.96 $26 *Renton 3,000 - 4,000 sqft $5,000 $60,000 $15 114 Average Saving from Renton $9,408 $112,900 $11 *Tacoma 3,000 - 4,000 sqft $5,000 $60,000 $15 42 Average Saving from Tacoma $9,408 $112,900 $11 *Source: OfficeSpace.com **Additional cost savings available from reduction of Triple Net common areas
- 14. Salary Pay Cuts Salary Reduction • Each employee received around a 20% salary reduction Monthly Savings • $16,172 Yearly Savings • $194,064
- 15. Further Pay Cuts Additional Overhead Reductions Primary Stockholder Intern Marketing Manager Projected Monthly Savings $14,000 Projected Yearly Savings $167,000
- 16. Additional Sources of Capital Community Capital Development Contact Representative Free Consultation
- 17. Deliverables Financial Evaluations New Market Entry Online Presence
- 18. Values, Mission and Vision • Community Business Advancement • Economic Recovery – Need for more office spaces – Providing value to our communities through designing office spaces
- 20. Available MBE Resources • Northwest Mountain Minority Supplier Development Council • Turner Construction School of Management
- 21. Deliverables Financial Evaluations New Market Entry Online Presence
- 23. Web Presence
- 24. Google Tools Google Alerts •Brand •Competition •Industry & Technology Google Analytics •Traffic Sources •Visitor Flow •Visitor Behavior
- 27. Homepage Suggestions • General Redesign –Obsolete programming methods –Menu Redesign • Image Gallery –Large Images –Rotating
- 28. Short Term Long Term • Lease • Pay cuts • Overhead reductions • NWMMSDC • Direct Sales • Turner Construction • Funding (Community Capital Development) • Website redesign • Google Analytics, Alerts, AdWords • Social Media
- 29. Closing Cost Saving Measures New Market Entry Methodologies Online Recommendations
- 30. Questions? A/P Aging Report A/R Aging Report Employee Salary Possible Additional Expense Cuts Current Situation Private Market Income Statement Financial Ratios A/R + A/P Aging Reports Lease Cuts Salary Cuts Overhead Cuts Additional Capital Values Marketing Manager MBE Resources Web Presence Social Media Google Tools Web Crawlers TimelineHome page
- 32. Additional Expenses Additional Expenses Current Expense Cost Saving Potetntial Auto Lease $12,724.44 $12,724.44 Office Equipment Lease $13,841.94 $13,841.94 Other Expenses $5.035.83 $5.035.83 Postage 50% Cut $1,559.39 $779.70 Team Building 50% Cut $4,080.68 $2,040.34 WASUI - ER $18,631.36 $18,631.36 Marketing Expense $6,778.51 $6,778.51 Telephone/Internet/Fax 50% Cut $11,743.31 $5,871.66 Total Cost Saving $46,436.21
- 33. Accounts Payable Aging Report Total 0-30 Days 31-60 Days 61-90 Days91-120 Days 121- 150 Days Over 150 A/P $518,713.6 0 $59,890.3 5 $18,845.68 1053.17 $74,421.12 $29,272.19 $335,231.0 9 % Breakdown 12% 4% 0.20% 14% 6% 65%
- 34. Accounts Receivable Aging Report Total 0-30 Days 31-60 Days 61-90 Days 91-120 Days 121- 150 Days Over 150 A/R $117,636.69 $50,701.21 $21,050.22 $12,302.32 $10,585.99 $0.00 $22,996.95 % Breakdown 43% 18% 10% 9% 0% 20% • Industry Standard for writing off accounts is over 90 days • 29% of ORB’s Receivables are over 90 days
- 35. Employees
Editor's Notes
- Military market drying up Loss of revenues in addition to debt owed to consultants NEED for new revenue streams
- Commercial construction is projected to grow at an annual rate of 4% whereas apartment construction is projected to grow at an annual rate of 3.7%. greater competition in the commercial sector, however with the economic recovery, office rental vacancy rates are projected to decrease, revealing the need for more office space. On top of this finding, rental vacancy rates in apartments and condominiums are projected to increase due to the excess construction of apartment and condominium construction during the recession. Additionally, ORB has previous experience designing commercial buildings whereas the firms experience in housing revolves around affordable, multi-family housing which is more regulated, and requires a very specific set of design features as opposed to apartment construction which is much more varied
- Company hit negative profit from 2010 – 2012 due to recession Cost as a % of Revenue was increasing for a while, but started to decrease Cost in a year over year change has increased 53% from 2012 to 2013
- 2013 A/R = $117,636.73 2013 A/P = $518,713.60 Owe more money than receiving ORB currently owes majority of A/P to consultants AHBL = $55,918.71 BCE Engineering = $330,250.32
- Oral agreement
- Marketing Manager – Lower base pay due to the financial stress of ORB Set up a commission based pay system so that the marketing manager is paid when they bring in more business
- O*Net – Interacting w/ computers and developing long term strategies Marketing Manager – Strong networker – Direct sales w/ contractors TIE INTO FINANCIALS More proactive sales strategies *Writing materials
- GIVEN THAT ORB IS AN MBE NMMSDC $550 for initial certification and $500 annually following this Corporate partners Networking opportunities to meet w/ the corporate members Referrals to corporate partners on a regional, and national level Listing in the National Minority Supplier Development Council MBE computer database Education programs and workshops Turner Construction Free eight-week program which offers construction management training to small minority owned businesses (including women-owned). It is put on every fall and provides education in various disciplines such as business plan writing, marketing, accounting, and financial management, to name a few. In addition to the educational portion of the program, participants also receive a “Class Program Book” which includes a compilation of profiles for the participating companies, networking opportunities with other program participants, and recognition with other industry leaders for having completed the program.
- Align w/ new direction Design descriptions and messages on individual sites to fit customers they reach Maintain a consistent image of who ORB is and what they do
- Align w/ new direction Design descriptions and messages on individual sites to fit customers they reach Maintain a consistent image of who ORB is and what they do
- Latest Relevant Google Results Brand Competitors Industry & Technology _________________________ Traffic Sources Visitor Flow Visitor Behavior
- ______________ Easy to use Great URL filtering system __________________ Not actually a spider Searches directories and social networks ______________________ Annual Fee Designed for search engine optimization HOW DOES THIS HELP
- B2B____________ Facebook Google+ LinkedIn ______________Visual Nature of their industry Pinterest Houzz
- General Redesign Obsolete programming methods Menu Redesign Image Gallery Large Images Rotating
- Immediate cost savings previously mentioned Long term, online improvements that Erik mentioned