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- 1. Profit Central by QuickBooks and Business Coaches Numbers Talk, 510-558-1999 Profit Central The Center for increasing your profits George Fruehan, GeoFru@usa.net Numbers Talk, 510-558-1999 1 So Many Things to Manage To Align Our Focus for Today Bookkeeping – timely posting of transactions and reconciling of accounts. Get our bills out and get paid. Pay vendors on approved invoices. Controllership – posting of accruals and adjustments; review of accounts and controls. Note variance from plan or history. CFO – Equal partner with senior management team. Looks at business risk and opportunity. Business profitability. How? 2 Increase Profits with Less Effort 4/15/2009 1
- 2. Profit Central by QuickBooks and Business Coaches Numbers Talk, 510-558-1999 The Importance of Gross Margin Inc. Magazine, Dec 2004, Column by Jay Ebben, Ph.D. One vital aspect that I often see entrepreneurs overlook is that of gross margin. This is an extremely important number for every business to manage, … it directly impacts risk and return. Inc. Magazine, Sept 2005, Column by Ted Hurlbut A client asked me which single metric he should stay most focused on. I didn't need to think twice. I recommended that he focus, like a laser beam, on gross margin. 3 Is Focus is more Important than Effort? 4 Increase Profits with Less Effort 4/15/2009 2
- 3. Profit Central by QuickBooks and Business Coaches Numbers Talk, 510-558-1999 What is Gross Margin? Why Do We Care? Profit & Loss Report Revenue 1,000,000 100% 600,000 60% COGS Gross Profit 400,000 40% Gross Margin – on average, Selling 100,000 across customers “Overhead” 150,000 Net Profit 150,000 15% on average , across customers 5 Pareto’s Rule of Customer Sales, …Profits If 20% of Customers generate 80% of YOUR Sales, … Interesting? So What? What can we say about Customer Profits? 6 Increase Profits with Less Effort 4/15/2009 3
- 4. 4 4/15/2009 Increase Profits with Less Effort by Phil Spratt: www.sprattiart.com 8 Keep Your Focus on The Big Picture 7 4 93765 ¥¨% 8 ' 04 ¥¡£¡¢ ¥£¢ ¤¤ ¥¡ £¡ ¢ ¤¥£¡¢ ¤ ¡¡ ¡ 2 1 ) ¨% 3 0( ' ¡ ¡ @ A ¤¥£¢ ¡¡ BB ¤ ¥¡¡ yxx ¥w wwb u duu £ q ¨ f dii ¥ f dee c d ¤¥y¥wbcc cc ud£ rr rr q¨ fd¥ fdcd ¥y¥bvd£tt tt s¨pp pp d¥hh hh `` `` gg gg ddaa aa ¤¥y¥b ud£ q¨ fd¥ fdcd ¤ ¡¡ xx u uu q f ii f ee c # quot; $! X `X V ¤ S D P IHGE ba £YWTU¥¡ ¥R7QH quot;9F6FD7C § ©§ §©§¨ ¨¦¦ All Customers are NOT Created Equal Numbers Talk, 510-558-1999 QuickBooks and Business Coaches Profit Central by
- 5. Profit Central by QuickBooks and Business Coaches Numbers Talk, 510-558-1999 ProfitCentral extends your power! From Awareness, … to Analysis, … (wait, wait, wait, wait, ) to Action! 9 More Responsive to Customers Business Owners: Align Your Offer With Customers' Willingness To Pay Get What You Deserve From Your Customers Business Coaches: Ideal tool to deliver Extreme Value and generate recurring fees You get Free Training when introduced to your Clients 10 Increase Profits with Less Effort 4/15/2009 5
- 6. Profit Central by QuickBooks and Business Coaches Numbers Talk, 510-558-1999 Profit Central: awareness to action 11 Beta released for user comment Interfaces with popular accounting systems: Eclipse (was Intuit, now Activant), ACCPAC, QuickBooks other systems are being added Beta is now available for user comment Call to qualify for a trial with your data. George Fruehan, 510-558-1999, GeoFru@usa.net 12 Increase Profits with Less Effort 4/15/2009 6