day 2 after lunch

1. COMMISSIONS:
MARKETING: Troubleshooting Mktg %
6000-Marketing
Know how your KPI’s
directly translate into your P&L

2. COMMISSIONS:
MARKETING: Troubleshooting Mktg %
CPIL =
Cost Per Issued Lead
NSLI =
Net Closing % X Avg Job Size
3 KPIs to calculate your Mktg
%

3. COMMISSIONS:
MARKETING: Troubleshooting Mktg %
CAUTION! Remember this:
‣ What you
EXPENSE for Leads
this month creates
your Net Sales,
NOT your Installed
Revenue for that
month.
Bad P&L Mth Good P&L Mth

4. Reconciliation:
‣ Did your volume come in right?
Troubleshooting High OHs
7000-Sales OH:
8000-Production OH
9000-Admin OH
Coming in greater
than 20%? WHY?
‣ Offer an incentive plan
based on relevant line items.
‣ Each Category should have a
departmental Manager (overseer).
OVERHEADS:
4%
5%
11
%
You can only EXPECT what you
INSPECT
‣ Who is watching this?

5. Be an Independent
THINKER
Compensation Plans
What is the right Bonus Plan?
The Template
A Volume Bonus is the
Rocket Fuel that Drives
em’
An Efficiency Bonus is
what intellectually
restrains em’
Both Motivators
can Exist in One Plan

6. Sales Manager
COMPENSATION PLANS:
Volume Bonus:
The Rocket Fuel that Drives
em’
The more they SELL, the more they
make…and the more you make.
1. Determine your Monthly Break Even
(which includes the Sls Mgr salary)
2. Round it up to the nearest $50,000
for their “Threshold”
3. Volume bonus is an override applied
to the amount OVER the threshold
Efficiency Bonus:
Intellectual Restraints
Sell more, but sell it
profitably.

7. The Right Plan
Dictates the Right Behavior
It creates a “good
conflict” within
themselves

8. I need more leads to
drive VOLUME!
Your Sales Manager
Pump the BREAKS!
I got reps with a low
NSLI.
NOTE:
Yearly Plan
Versus
Monthly
NOTE:
Salary &
Bonus =
Approx
1.8%

9. Marketing Manager
COMPENSATION PLANS:
Volume Bonus:
The Rocket Fuel that Drives
em’
The more LEADS they issue, the more
they make…and the more you make.
1. Determine your Monthly Break Even
(which includes the Mktg Mgr salary)
2. The B.E. # of issued leads
determines the “Threshold”.
3. Volume bonus is an override applied
to the amount OVER the threshold
Efficiency Bonus:
Intellectual Restraints
Issue more, but convert
raw-to-issue cost
effectively

10. Marketing Manager
COMPENSATION PLANS:
Example Only
Confirmers:
Efficiency =
Iss’d rate X Demo
rate

11. Other Key Roles
Production Mgrs: 8000
Accts
Controller/HR: 7000 & 9000 Accts

12. ‣ Identify the relevant KPIs
‣ Tie it to to performance that THEY control
‣ It’s more about the SCORE CARD than it is the
. MONEY (people want to win)
When set up properly, the employee’s “KPI
Score Card FOCUS” automatically translates to
your P&L outcome.
COMPENSATION PLANS: SUMMARY

13. ‣Marketing (raw inbound leads, unloaded CPIL)
‣Call Center (Conversions, raw to set)
‣Confirmers (Issue rates, Set to Conf % X Demo Rate %)
‣Sales Mgt’ (NSLI, Overall Net Sales/mth)
‣Admin (Net Sls / mth)
‣Measure Techs (Miss-measures)
‣Production Mgt’ (Installs/mth, COGS, Settlements, etc.)
COMPENSATION PLANS: SUMMARY

14. 1.Quarterly Taxes
2.Interest / Credit lines
/ Term Loans
3. Retain Core Capital
( ~ 15% of Rev)
4. Personal
Distributions
(quarterly)
The FOUR FORCES of CASH FLOW

17. ON THE RIGHT STUFF
CULTURE

18. INTERNAL
& EXTERNAL

19. YOUR 2-MINUTE
ELEVATOR PITCH
‣Be more than a company
that just sells stuff
‣Be Unique - distinguish
yourself from the
competition (USP)
External (to the Public)
Culture

20. INTERNALLY

21. ‣ Memorize them
‣ Recitals in wkly meetings
‣ Post it everywhere
‣ Onboarding process
Document your Core Values
DEFINE IT!
DRIVE IT!

22. BLUEPRINT FOR GROWING IT
‣ Thursday mornings (8 am to 9:30)
‣ Start with reciting Guiding Principles (core
values)
‣Why? Brings leadership team together,
accountability to each other, fosters good
relationships
‣Score Card Review: 7 minute presentation from
dept heads: Mktg Mgr - Call Ctr Mgr - Sls Mgr - Install Mgr - H/R
Mgr
Weekly BPR Meetings (Business Plan Review)

23. DYNAMIC
ENERGETIC
CLEAN, LEAN Operating Machine
It looks COOL
“You can tell they like what they do"
“This is not a place to just have a ‘job’. It’s a place to grow,
personally and professionally. Everyone has a sense of purpose
and belongs to something really cool…
and yeah, make some good money too.”
FUN

25. MUST READS!

26. ON THE RIGHT STUFF
THE RIGHT PEOPLE

27. The Best Companies…
have the BEST PEOPLE

28. WHAT BUSINESS
AM I IN?
The People
Development
Business!

29. PEOPLE DEVELOPMENT
The Org Chart:
‣ Do you have one?
‣ Where are you?
‣ You need two of them
• Where you are…AND…where you’re going
• Identify the vacancies

30. PEOPLE DEVELOPMENT
Filling Positions
‣ Need to be a good recruiter
‣ Need to have the right pay plan
‣ Need to be a good trainer
You need THREE things:
You can delegate tasks…but not the responsibility

31. FEBRUARY 7-8, 2023
FORT MYERS, FLORIDA
YOU’RE INVITED
189

32. Success, Wealth
& Freedom
HELPING BUSINESS OWNERS ACHIEVE MORE

33. H/R 101
Behavioral Profiles
Aptitude Testing
Technology Testing
Prof. References
Background Checks
The CAN DO
Interview
WILL DO
Work Ethic
Take Initiative
Resourcefulness
Coachable
Self-taught
Training (first 2 weeks)
FIT FACTOR
ADAPTION
First Month

34. ‣ Expose Quickly
• Pay attention to the small telltale signs (good or bad).
• Don’t hold onto deadwood (opportunity costs).
‣ Formalize the training for every position
• Key benchmarks (inspect what you expect)
• Homework assignments
• You can teach it, but you can’t learn it for them
• Winners will naturally rise to the occasion
• Losers can’t hide…turnover is NOT bad
PEOPLE DEVELOPMENT: Don’t Settle for Average

35. Hire Slow…but Fire Fast
Develop
Efficiently…Expose
Quickly!
PEOPLE DEVELOPMENT: Don’t Settle for Average

36. A MUST READ! Leadership IQ
‣ 89% of turnover has nothing to do
with competency
‣ Base your interview questions
around your “core values”
‣ Your assessment should be
consistent with any other interviewer
‣ Don’t “coach” the candidate

37. INTERVIEW QUESTIONS: Examples

38. INTERVIEW QUESTIONS: Examples

39. INTERVIEW QUESTIONS: Examples

40. ON THE RIGHT STUFF
TECHNOLOGY

41. The Best Companies…
Leverage TECHNOLOGY
BE A TECHNOLOGY BASED COMPANY
An Integration of SYSTEMS & PROCESSES,
driven by an assortment of SOFTWARE platforms,
that enables the business to be scalable and
sustainable.
Rule # ONE Never say, “I’m technically challenged”

42. Utilize:
1. CRMs: ImproveIt360, MarketSharp, Lead Perfection
2. Automated Pricing: LEAP or equivalent
3. Go paperless: Doc Hub, Docusign,
4. Dept. SOPs: Document every process
5. Collaborative Platforms: G-Suite, Microsoft 365
6. Communication Platforms: Slack, Chat, Hatch, Marlimar
INVEST IN SOFTWARE: Quick - Efficient - Accurate

43. I have no interest in selling my business,
but I think about selling it every day.

44. DISCLAIMER: Not a CVA
✓ Organized P&Ls & Balance Sheet
It means you profit by DESIGN, not by ACCIDENT
✓ Technology Driven
You’re SCALABLE: Well documented
systems/processes in place
✓ A Noteworthy USP:
It means you are Bus. Model is SUSTAINABLE
WHAT’S YOUR BUSINESS WORTH?
WHAT’S YOUR BUSINESS WORTH?

48. YESTERDAY WE STARTED WITH…
‣ You want to make more money
from your business… A LOT
more money!
‣ You want to have a DEEP
understanding of
PROFITABILITY, and the
underlying MECHANICS;
‣ You want to have a business
that is PERMANENTLY
PROFITABLE - 15-20%!!;
‣ You want to understand how to
think, act and make decisions
like a multi-millionaire home
improvement business owner
does;
‣ You want a better mindset
around money;
‣ You want to deposit more cash
into your “wealth account”
month-after-month, year-after-
year;
Today, Do You Have…
✓Confidence?
✓More Belief in
Yourself?
✓ More Belief in Your
Business?