Running your Business by the Numbers in 30 minutes a month

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A few basics and a few things you probably didn't know about managing your financials

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  • I’m coming to the class hoping for or expecting:Talk to me about the terms I will use everydayEntering data, classifying properly important? Tell me what’s most important to monitorTell me what my process should beWhat is required by the IRS to track and what is optional?
  • You ju
  • We should try to distinguish these in a few areas in the deck, such as Performance Metrics on slide 14 would be considered Finance
  • What are your numbers telling you about your biz?
  • Help us solve this problem.
  • Running your Business by the Numbers in 30 minutes a month

    1. 1. Running your Business bythe Numbers in 30 Mins/moA few basics and a few things you probablydidn’t know
    2. 2. Financial statements are just the start… Accounting vs. finance Accounting cycle Management cycle Performance analysis Financial managementSuppose it’s the end of the month. Books are closed. NOW what do you do?
    3. 3. Accounting vs. FinanceAccounting Finance• Looks back • Looks forward• Tax driven • Plan driven• Transactions • Models / scenarios• Internal data • Internal plus external data• Cycles – mo/qtr/yr • Management cycles Finance is about combining accounting information with business intelligence
    4. 4. HOW did you REALLY do?Hunt for the 3 big things each month:1. Margins shrinking?2. Revenues erratic?3. Expenses growing?
    5. 5. Your TurnWhat is your best guessas to your revenuegrowth % ?
    6. 6. Trends to Watch Unhealthy Healthy Industry Benchmark Revenue$ Revenue $ Industry Benchmark Time  Time 
    7. 7. Trends to Watch Unhealthy Healthy Revenue Revenue$ $ Time  Time 
    8. 8. Your TurnWhat is your best guessas to your Receivables ?
    9. 9. Trends to Watch Unhealthy Healthy Revenue Revenue$ $ Cash Cash Time  Time  Revenue Revenue$ $ Cash Cash Time  Time 
    10. 10. Your TurnWhat is your best guessas to your COGs % orMargin %?
    11. 11. Trends to Watch Unhealthy Healthy Revenue Revenue$ COGS $ COGS Overheads Overheads Time  Time  Revenue$ COGS Overheads Time 
    12. 12. Your TurnRevenue to expensetrends?
    13. 13. Trends to Watch Unhealthy Healthy Revenue Revenue$ $ Expense Expense Time  Time  Revenue Revenue$ $ Expense Expense Time  Time  Revenue$ Expense Time 
    14. 14. What to do w/ what you know• Change a goal• Solve the problem• Change the business offerings• Change investments• Get an Advisor who knows your numbers• Most importantly…
    15. 15. Share with your Team! Team, we need to be lookingmore carefully at our margins…Add our subscription service to3 more customers a month and we’ll grow this 20% next year The Corelytics Financial Dashboard What’s measured can be addressed. Get them on the same page and they will help
    16. 16. Monthly Management Process: 30 Minute Action Plan
    17. 17. Result• You’ll know if you are off track• You can take advantage of opportunities• As market fluctuates, you are able to ride the wave• You won’t push the gas pedal on Sales if you’re not prepared to grow• Your team is on the same page
    18. 18. Long Term Goals• Sustainability• Long-term growth• Market position• Owner’s return on investment (ROI)• Equity value• Liquidity event (sell, acquire, investment)• A good night’s sleep
    19. 19. Free Financial Health CheckYour Company, Inc. https://healthcheck.corelytics.com/pub/sign_up.aspx
    20. 20. THANK YOU

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