The document discusses getting employees to think and act like owners of a business. It emphasizes establishing goals that will last forever, such as providing sufficient profit to enhance the standard of living for all associated with the business, and providing the highest quality products and services. It also discusses developing strategies like a written marketing plan, personnel strategies, an operational plan, and a dynamic financial plan to achieve these business goals and get employees invested in the long-term success of the company.
Making yourself irresistible for M&A: 7 tips to get you ready to sell your bu...
Think & Act Like Owners
1. GETTING EMPLOYEES
TO THINK
& ACT LIKE OWNERS
Presented by
Kasey Eidukonis Senior Business Analyst
KE-InternationalManagement Consultants
2.
3. Every day we go toEvery day we go to
our place of business.our place of business.
What is it that weWhat is it that we personallypersonally wantwant
from this activity?from this activity?
Why?
7. Business Definition:Business Definition:
An economic unit formed to provideAn economic unit formed to provide
goods and/or services to customersgoods and/or services to customers
Make a profitMake a profit
AndAnd satisfy the personal needs of thesatisfy the personal needs of the
owners and the employeesowners and the employees..
8. If a business does notIf a business does not
satisfy the needs of itssatisfy the needs of its
owners andowners and
employees it has noemployees it has no
basis for existence.basis for existence.
9. What must we do toWhat must we do to
provide owners andprovide owners and
employees what theyemployees what they
want?want?
Establish goals that will last foreverEstablish goals that will last forever
10. We WantWe Want
MoneyMoney
EnjoymentEnjoyment
SecuritySecurity
12. Goal #1Goal #1
Provide sufficient ProfitProvide sufficient Profit to enhance theto enhance the
standard of living ofstandard of living of ALLALL who arewho are
associated with the businessassociated with the business
14. “It is why we are in business”
Profit Is An Attitude
(Not a Dirty Word)
15. Why Do We Need ProfitWhy Do We Need Profit
Sustain the businessSustain the business
Re-invest (perpetuate)Re-invest (perpetuate)
Pay peoplePay people
Return on investmentReturn on investment
AttitudeAttitude
16. PPeople & Planning (Management)eople & Planning (Management)
RRevenue (Marketing & Sales)evenue (Marketing & Sales)
OOperationsperations
FFinance & Capitalinance & Capital
TTechnologyechnology
Five Core Drivers of Profitability
17. Goal #2Goal #2
Provide the highest qualityProvide the highest quality productproduct
and/or service commensurate with ourand/or service commensurate with our
marketmarket
18. Goal #3Goal #3
Perpetuate the businessPerpetuate the business
It must be built to last foreverIt must be built to last forever
19. Strategies toStrategies to
Achieving OurAchieving Our
Business GoalsBusiness Goals
a written marketing plana written marketing plan
personnel strategiespersonnel strategies
operational planoperational plan
an dynamic financial planan dynamic financial plan
Develop:
20. A WrittenA Written
Marketing PlanMarketing Plan
What is our market?What is our market?
Who are we?Who are we?
CommunicationCommunication
CalendarizeCalendarize
21. Opportunity will knockOpportunity will knock
on your door whenon your door when
you tell opportunityyou tell opportunity
Where the door is!Where the door is!
22. The Marketing ProcessThe Marketing Process
Marketing sideMarketing side
Selling sideSelling side
The goal of marketing is to get theThe goal of marketing is to get the
prospect to the sellerprospect to the seller
23. Who Are We?Who Are We?
Ask! survey customers, employees,Ask! survey customers, employees,
etc.etc.
What are our talents?What are our talents?
Find out as much as possibleFind out as much as possible
You can’t market what you don’t knowYou can’t market what you don’t know
24. What Is Our Market?What Is Our Market?
Learn as much as you can:Learn as much as you can:
PricePrice
LocationLocation
SizeSize
SpecializationSpecialization
FutureFuture
Impact of technologyImpact of technology
Narrow the marketNarrow the market
25. CommunicationCommunication
Now that we know our marketNow that we know our market
Now that we know what we’re going to marketNow that we know what we’re going to market
Tell opportunity where theTell opportunity where the
door isdoor is
29. Personnel StrategiesPersonnel Strategies
Hire theHire the bestbest people availablepeople available
Stop complaining andStop complaining and start trainingstart training
Push responsibility to its lowest levelPush responsibility to its lowest level
Reward excellenceReward excellence
31. For all those questions that keep youFor all those questions that keep you
up at night . . . there are answers.up at night . . . there are answers.
If you’re not getting the answers you need,If you’re not getting the answers you need,
perhaps you need to start asking differentperhaps you need to start asking different
questions.questions.
32. Instead of asking . . .Instead of asking . . .
Why aren’t we making money?Why aren’t we making money?
Ask . . . What activities are critical to the profitability of thisAsk . . . What activities are critical to the profitability of this
business and how are we performing in these areas?business and how are we performing in these areas?
How can we get our employees to be more productive?How can we get our employees to be more productive?
Ask . . . Have we given our employees the tools, training, andAsk . . . Have we given our employees the tools, training, and
information they need to be productive?information they need to be productive?
How come things never get done right around here?How come things never get done right around here?
Ask . . . Is this a recurring problem? Is it a people or processAsk . . . Is this a recurring problem? Is it a people or process
issue?issue?
Why do they always come to me for the answers?Why do they always come to me for the answers?
Ask . . . How well are our systems/procedures documented? DoAsk . . . How well are our systems/procedures documented? Do
we reward initiative or punish it?we reward initiative or punish it?
33. Performance Measurement can close the gapPerformance Measurement can close the gap
between the questions that keep you up atbetween the questions that keep you up at
night and the answers you need to managenight and the answers you need to manage
your business more effectively.your business more effectively.
When applied properly, a performanceWhen applied properly, a performance
measurement system can take themeasurement system can take the
guesswork and arbitrary decision making outguesswork and arbitrary decision making out
of managing your business. Armed with betterof managing your business. Armed with better
information, you’ll be in a position to makeinformation, you’ll be in a position to make
better decisions on a real-time basis.better decisions on a real-time basis.
34. What is performanceWhat is performance
measurement?measurement?
By its very nature, a performanceBy its very nature, a performance
measurement system provides real-timemeasurement system provides real-time
feedback about key activities that are criticalfeedback about key activities that are critical
to the company and serves as a predictor ofto the company and serves as a predictor of
future outcomes.future outcomes.
Simply put, performance measures serve asSimply put, performance measures serve as
indicators of progress toward specific goalsindicators of progress toward specific goals
that are critical to the success of yourthat are critical to the success of your
company.company.
35. Copyright Mentor Plus 1998Copyright Mentor Plus 1998
How Does YourHow Does Your
CompanyCompany
Keep Score?Keep Score?
36. What to DO?What to DO?
Develop a financial planDevelop a financial plan
37. Dynamic FinancialDynamic Financial
PlanPlan
Monthly financial informationMonthly financial information
12 month profit and loss plan12 month profit and loss plan
12 month cash flow plan12 month cash flow plan
Accounts receivable programAccounts receivable program
Inventory management programInventory management program
38. Bring Your Financials to Life . . .Bring Your Financials to Life . . .
. . . They must tell you a story. . . They must tell you a story
39. What’s Wrong WithWhat’s Wrong With
This Statement?This Statement?
It lists income andIt lists income and
expense without giving aexpense without giving a
clue as to what is right,clue as to what is right,
what is wrong.what is wrong.
Numbers are a stagnantNumbers are a stagnant
list.list.
Most entrepreneurs willMost entrepreneurs will
look at the bottom linelook at the bottom line
without looking at what’swithout looking at what’s
between top and bottom.between top and bottom.
It doesn’t tell you a story.It doesn’t tell you a story.
SALESSALES $575,000$575,000
COST OF SALESCOST OF SALES 300,000300,000
GROSS PROFITGROSS PROFIT 275,000275,000
EXPENSESEXPENSES
AccountingAccounting 1,0001,000
AdvertisingAdvertising 25,00025,000
AutoAuto 5,0005,000
ConsultingConsulting 2,0002,000
Depr eciationDepr eciation 5,0005,000
Inter estInter est 4,2004,200
Payr oll taxesPayr oll taxes 15,00015,000
Pr omotionPr omotion 5,0005,000
RentRent 2,8002,800
Salaries – administrativeSalaries – administrative 35,00035,000
Salaries – officeSalaries – office 19,00019,000
Salaries – salesSalaries – sales 45,50045,500
SuppliesSupplies 1,8001,800
TTelephoneelephone 5,5005,500
TTravelravel 5,5005,500
TOTAL EXPENSESTOTAL EXPENSES 177,300177,300
NET INCOMENET INCOME $97,700$97,700
STSTAATEMENT OF INCOMETEMENT OF INCOME
For the Period Ended ________For the Period Ended ________
40. SALES
COST OF SALES
GROSS PROFIT
EXPENSES
Accounting
Advertising
Auto
Consulting
Depreciation
Interest
Payroll taxes
Promotion
Rent
Salaries – administrative
Salaries – office
Salaries – sales
Supplies
Telephone
Travel
TOTAL EXPENSES
NET INCOME
STATEMENT OF INCOME
For the Period Ended ________
Actual
$575,000
300,000
275,000
1,000
25,000
5,000
2,000
5,000
4,200
15,000
5,000
2,800
35,000
19,000
45,500
1,800
5,500
5,500
177,300
$97,700
41. SALES
COST OF SALES
GROSS PROFIT
EXPENSES
Accounting
Advertising
Auto
Consulting
Depreciation
Interest
Payroll taxes
Promotion
Rent
Salaries – administrative
Salaries – office
Salaries – sales
Supplies
Telephone
Travel
TOTAL EXPENSES
NET INCOME
STATEMENT OF INCOME
For the Period Ended ________
Planned
$615,000
320,000
295,000
1,500
29,500
3,500
2,500
5,000
4,200
10,000
6,000
2,800
32,000
19,000
40,000
2,000
4,000
1,500
163,500
$131,500
Actual
$575,000
300,000
275,000
1,000
25,000
5,000
2,000
5,000
4,200
15,000
5,000
2,800
35,000
19,000
45,500
1,800
5,500
5,500
177,300
$97,700
42. SALES
COST OF SALES
GROSS PROFIT
EXPENSES
Accounting
Advertising
Auto
Consulting
Depreciation
Interest
Payroll taxes
Promotion
Rent
Salaries – administrative
Salaries – office
Salaries – sales
Supplies
Telephone
Travel
TOTAL EXPENSES
NET INCOME
STATEMENT OF INCOME
For the Period Ended ________
Difference
$(40,000)
20,000
(20,000)
500
4,500
(1,500)
500
–
–
(5,000)
1,000
–
(3,000)
–
(5,500)
200
(1,500)
(4,000)
(13,800)
$(33,800)
Planned
$615,000
320,000
295,000
1,500
29,500
3,500
2,500
5,000
4,200
10,000
6,000
2,800
32,000
19,000
40,000
2,000
4,000
1,500
163,500
$131,500
Actual
$575,000
300,000
275,000
1,000
25,000
5,000
2,000
5,000
4,200
15,000
5,000
2,800
35,000
19,000
45,500
1,800
5,500
5,500
177,300
$97,700
46. Foretelling TriumphForetelling Triumph
Those who triumph, compute atThose who triumph, compute at
their headquarterstheir headquarters a greata great
number of factorsnumber of factors prior to aprior to a
challenge.challenge.
Those who are defeated computeThose who are defeated compute
at their headquartersat their headquarters a smalla small
number of factors prior to anumber of factors prior to a
challenge.challenge.
47. MuchMuch computation bringscomputation brings
triumph.triumph.
LittleLittle computation bringscomputation brings
defeat.defeat.
How much more so withHow much more so with
no computation at all!no computation at all!
By observing only this, IBy observing only this, I
can see triumph orcan see triumph or
defeat.defeat.
49. How much cash will I need?How much cash will I need?
When will I need it?When will I need it?
Where will I get it?Where will I get it?
Effective cash management must
always to answer in advance:
50. The Primary Elements of Your PlanThe Primary Elements of Your Plan
The Profit and Loss PlanThe Profit and Loss Plan
– Shows anticipated operations (income and expenses)Shows anticipated operations (income and expenses)
over the next 12 months or longerover the next 12 months or longer
The Cash Flow PlanThe Cash Flow Plan
– Takes information from P&L plan, converts it into cashTakes information from P&L plan, converts it into cash
flow, answers basic questions of “How much cash will Iflow, answers basic questions of “How much cash will I
need?” “When will I need it?”need?” “When will I need it?”
Forecasted Balance SheetsForecasted Balance Sheets
– The forecasted balance sheet is the only checkThe forecasted balance sheet is the only check
available to ascertain the reasonableness of the P&Lavailable to ascertain the reasonableness of the P&L
and Cash Flow plans.and Cash Flow plans.
51. Recap of the strategiesRecap of the strategies
to achieve our businessto achieve our business
goals.goals.
a written marketing plana written marketing plan
personnel strategiespersonnel strategies
operational planoperational plan
an annual financial planan annual financial plan
Develop:
53. Good things come toGood things come to
those who waitthose who wait
but only the things leftbut only the things left
by those who hustleby those who hustle
54. Dynamic AreasDynamic Areas
ORGANIZATIONORGANIZATION - The people and information factors- The people and information factors
FISCALFISCAL - Money, how we get it, how we keep it- Money, how we get it, how we keep it
OPERATIONSOPERATIONS - Our products or services, how do we do it- Our products or services, how do we do it
MARKETINGMARKETING - How we sell- How we sell
INFORMATION TECHNOLOGIESINFORMATION TECHNOLOGIES - How do we keep track of it.- How do we keep track of it.