WHAT: July CEO Workshop
WHEN: Tuesday July 8, 2014
We all want to build a sustainable business that provides a return on our (or our owners’ investment). So, how much profit does it take to produce the real returns that you not only desire, but also require? The first step in the process is to answer the question: what is your breakeven sales annually, monthly and even daily? We will all first go through our Profit and Loss Statements to determine how our expenses “behave.” We will separate out our variable and fixed costs and then calculate the answer to the breakeven question. With this new structure we will be able to have a better understanding of which costs need to be focused on to improve the bottom line.
But nobody wants to just break even! We will also now be in position to project the future and determine useful strategies.
We all want to build a sustainable business that provides a return on our (or our owners’ investment). So, how much profit does it take to produce the real returns that you not only desire, but also require? The first step in the process is to answer the question: what is your breakeven sales annually, monthly and even daily? We will all first go through our Profit and Loss Statements to determine how our expenses “behave.” We will separate out our variable and fixed costs and then calculate the answer to the breakeven question. With this new structure we will be able to have a better understanding of which costs need to be focused on to improve the bottom line.
But nobody wants to just break even! We will also now be in position to project the future and determine useful strategies.
LUNCH
All who are attending the morning session are invited to join us for lunch. Please let Dave Shapiro or Michele Bosworth know if you are not able to attend lunch.
LUNCH & LEARN
Ann Amati will lead a lunchtime discussion about what B2B companies can learn from their customers, effective ways to solicit feedback, and why company leaders should stay engaged with customer issues. Look forward to tips that will help your company win more of the sales it pursues, revitalize dormant customer relationships and transition from vendor to partner with key customers.
LUNCH & LEARN
Ann Amati will lead a lunchtime discussion about what B2B companies can learn from their customers, effective ways to solicit feedback, and why company leaders should stay engaged with customer issues. Look forward to tips that will help your company win more of the sales it pursues, revitalize dormant customer relationships and transition from vendor to partner with key customers.
MEMBERS
Members arrive at 7:30am for breakfast and check-in.
MEMBER CANDIDATES
There will be CEO Potential Member Candidates joining us for this workshop.
Potential Member Candidates are invited to the workshop and lunch; 8:50 am - 1:00 pm.
Potential Member Candidates are invited to the workshop and lunch; 8:50 am - 1:00 pm.
EMPLOYEE GUESTS: RSVP BY JUNE 30TH
Employee Guests are invited to attend the workshop and lunch; 8:50 am - 1:00 pm.
HOST
Shawn Murray of Mallory Safety & Supply
WHERE WE WILL MEET
Mallory Safety & Supply, 5510 East Marginal Way S, Seattle, WA 98134
TITLE OF WORKSHOP
How to Use Your Numbers to Make Better Complex Financial DecisionsAGENDA
Click here to view the Agenda.
QUESTIONS THE CEO SHOULD BE ASKING
- How much profit do I need to reinvest in my company?
- How much profit do I need to pay back additional long term debt?
- How much profit do I need form y bonus and/or retirement plans?
- If I hire additional staff what will I need insoles to cover their costs and make more profit?
- If I add on to my building (take on more space or open a new location) what will I need in increased sales to make that a good investment?
TAKEAWAYS
- What does my company's cost structure really look like
- How can I use this knowledge to make better decisions for the future around issues such as: pricing, expense control and investments in projects, equipment and people
- Learn how targeting a specific profit to determine your sales goals.
PREPARATION: DUE JUNE 30TH
There are some key steps to complete beforehand to help you get the most out of this workshop: get familiar with the concept of breakeven, determine which of your expenses are fixed versus variable, and use that info to fill in the Questionnaire part of the worksheet. Your workshop presenter, Steve Abercrombie, will review the rest in class. The end goal: gain a great tool for better decisions using your own numbers!
1. First, read the handout, Guide to Breakeven Plus. It will give you some background on breakeven analysis and walk you through some sample case studies.
2. Second, enter your sales and expense numbers into the2014 Breakeven Calculator. Click to open the 2014 Breakeven Calculator and download it by clicking on the download button that appears on your screen. Fill in the document and click save.
You will find detailed instructions for how to do so on the first worksheet entitled “Instructions.” You will enter your own numbers on the Questionnaire worksheet. You will need:
- Current month–end Profit and Loss Statement
- Year-to-Date Profit and Loss Statement
- The number of invoices/jobs and/or active customers for those same time periods
3. You will first need to decide which expenses are fixed and which are variable (that’s where reading the guide first will come in handy). Because this work will take us beyond breakeven and into future “what-if” analysis, you might have to do some consolidation if you have a lot of expense categories. Once you get done entering your numbers, you are welcome, but not required, to practice doing breakeven analysis on the Calculator worksheet.
4. Once you are finished, please print the Questionnaire and the Calculator pages and bring them with you to class.
5. Save the worksheet using your company name and email it as an attachment to Michele Bosworth at michelebosworth@excellpugetsound.com by June 30.
We estimate that it will take you about one hour to read the materials and about 1-2 hours to fill out the Questionnaire worksheet. Some of you will want to work with your CPA/bookkeeper/CFO on this project and to invite them (along with your other key team members), to attend the July CEO workshop with you.Please be sure to read the handout guide yourself, though, so you are personally familiar with the concepts.
Steve won’t be sharing anyone’s individual financial data with the other members in the workshop. But, if you are willing to let him use your worksheet and calculator pages in class as a “live” case study, let me know when you return your pre-work and Steve will be in touch with you before the workshop.
Questions? Don’t get stuck! Contact Steve directly at 360.320.8770 or steve.abercrombie@profitsoup.com. He will be happy to help!
You will find detailed instructions for how to do so on the first worksheet entitled “Instructions.” You will enter your own numbers on the Questionnaire worksheet. You will need:
Steve brings passion and personality to company
financial strategies. His life experiences as a banker, financial educator and
business owner have shown him that having financial knowledge of your business
model is in many cases the absolute key to success. His clients all say that
Steve excels at taking the mystery out of the numbers with his common-sense
approach and always-compassionate personal style.
He has a talent for rallying the troops behind
improvement initiatives by organizing, understanding and appropriately
communicating the financial story of the business to the management team and
key staff. Then he integrates this connection to financial success with ongoing
structure and support around company goals and strategic steps. With key
players aligned and focused, everybody accomplishes more.
Steve has helped many clients prepare their businesses
for the financial scrutiny of lenders and investors when financial
restructuring or expansion is imminent. He understands the language of lending
from his years in banking, where he has held roles from branch manager and
lender to bank President and CEO. As President and principal of a leading
financial training company, he mastered business expansion from the other side
of the desk – with the perspective of owner and rain maker. He gained notoriety
as a sought-after convention speaker for graduate schools of banking,
corporations and associations throughout the US, Australia and England.
Steve’s clients include Choice Hotels, ProSource Floor
Coverings, Graduate School of Banking of the South and Bright Star Franchising,
“I have had
the good fortune to work with Steve Abercrombie at both ProSource and
BrightStar. Both times, he provided these companies with top-shelf financial
literacy training for our franchisees. I have found Steve to be not only well
versed in financial management, but able to easily convey concepts to
franchisees. His breadth of knowledge and ability to make financial concepts
"real world" for franchisees is one of the things I most appreciate
about Steve.”
Bob Lange, Vice President of Field Support, Bright
Star Franchising
“Steve is
exceptional at taking complex financial information and terms, and making it
easy for people understand and use. Steve is one of the best professional
speakers I've ever heard. Interesting, captivating and helps the audience truly
understand and apply what he is talking about.”
Evan Hackel, President and Engage Consulting
PROFIT SOUP
WWW.PROFITSOUP.COM
steve.abercrombie@profitsoup.com
LUNCH & LEARN PRESENTER: ANN AMATI
Since 1994 Ann Amati has helped companies across multiple industries use guidance from their own current and past customers to grow future sales. She has a track record of creating positive turning points in her clients' relationships with their customers and leaving a legacy of improved competitiveness and strong customer retention.
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