business essentials budget, strategy & human resources
DESCRIPTION
Budgeting Basics and Human Resources OverviewTRANSCRIPT
Owner Manager TrackSponsored by:
Business Essentials: Budget, Strategy
and Human Resources
Presented by:Marcel Newell & Jody Culbertson
Session Outline• Budget Strategy
– Budget Basics– Key Performance Indicators– Know your numbers & Putting them to work– Management Tools (work ON your business)
• HR- Human Resources Process– Recruitment – Hiring – Orientation– Performance Management
Tools to Stay ON Track
Job Well Done:
Job Well Done:
Job Well Done:Know the Rules, WIN the Game!
As yourself the Right Questions!
Work ON your business, NOT in it!
Know where to Focus!
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Level 2
Level 2
Level 2
Level 2
Level 2
Level 2
Level 3
Level 3
Level 3
Level 3
Level 3
Level 3
Level 3
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
3 Levels
State of Retailers
Plateaus
State of Retailers
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Level 2
Level 2
Level 2
Level 2
Level 2
Level 2
Level 3
Level 3
Level 3
Level 3
Level 3
Level 3
Level 3
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
3 Levels
Stuck at $180K - $250K
State of Retailers
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Level 2
Level 2
Level 2
Level 2
Level 2
Level 2
Level 3
Level 3
Level 3
Level 3
Level 3
Level 3
Level 3
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
3 Levels
Stuck at $450K-$600K
Stuck at $180K - $250K
State of Retailers
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Level 2
Level 2
Level 2
Level 2
Level 2
Level 2
Level 3
Level 3
Level 3
Level 3
Level 3
Level 3
Level 3
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
3 Levels
Stuck at $750K - $900K
Stuck at $450K-$600K
Stuck at $180K - $250K
State of Retailers
Which one are you?
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Level 1
Level 2
Level 2
Level 2
Level 2
Level 2
Level 2
Level 3
Level 3
Level 3
Level 3
Level 3
Level 3
Level 3
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
3 Levels
Stuck at $750K - $900K
Stuck at $450K-$600K
Stuck at $180K - $250K
State of Retailers
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
3 Levels
3 Levels
Grow
th
+5%, +10%, +20%
State of Retailers
Year 1
Year 1
Year 2
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
$-
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
Flat Line
10 – 20 years?
State of Retailers
If we are lucky, continual growth!
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
3 Levels
Inflection Point #1
Inflection Point #2
State of RetailersReality is…• Working 6 days a week• Best installer in the company• Best sales person in the company• Business will die without the owner• Feel stuck, not sure what to do to grow• Not getting the results we were
expecting
Is this you?
State of Retailers6 days a week:
Who here is working 6 days a week?
State of Retailers6 days a week:• Average work month is 176hrs
(40hrs/week)
• Retailers work 208 hrs (60hrs/week) +15%
• What has happened?• Bought yourself a job• At risk for $150K in inventory• $50K to $200K debt
State of RetailersBought yourself: JOB
Earning $11/hr to $29/hr
State of RetailersJob Offer:• Low pay, GREAT conversation• $150K cash upfront• Must sign ALL personal
guarantees• Pay you went we can, if we can?• We hope everything works
out…Sign Here: _____X_____
State of RetailersHow was your day yesterday?
How do you describe it?
How was last Saturday?
What needs to change?
SubjectiveLearn how to make it measurable!
#@$%@#@
Example
Time for Change is NOW!
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
3 Levels
Inflection Point #1
Inflection Point #2
Budget Strategy
• Know your numbers• Financial Statements
• Budget Form
Tools to stay on track
What you need:
How often do you look at your Financials?Monthly 30 – 45 days, Yearly 365 – 485?
Fill in Page 1
Budget Strategy
• Know your numbers• Financial Statements
• Budget Form
Boring…
What you need:
Budget Strategy
• Know your numbers• Financial Statements
• Budget Form
Overwhelming…
What you need:
Budget Strategy
• Know your numbers• Financial Statements
• Budget Form
Simple & Easy
What you need:
Budget Strategy
G.P.S.Goals + Performance =
Success
Budget Strategy
GPS: Goals + Performance = Success
Budget
Measurement
Budget Strategy
GPS: Goals + Performance = Success
Budget
Measurement
Example
Budget StrategyPlan:
A plan will always change, but a business with a plan will go the
distance.
Know your NumbersBusiness Model
Burn Rate:$_____ (month)
Break-even: $_____ (month)
Gross Margin: ___% (product)
Gross Margin: ___% (install) Fill in Page 1
KPI’s (Key Performance Indicators)
Traffic:______
Sales:$______ (per day)
Avg. Sale:$______
Close Rate: ______%
GPS: Goals + Performance = Success
Budget Components:
A. Revenue
B. Costs
C. Profit
Vanity
Reality
Sanity
1. Variable: COGS2. Fixed: G&A
GPS: Goals + Performance = Success
Costs:1. Variable: COGS
Cost of Goods Sold• Product• Installation Labour• Credit Card Charges• Warranty
2. Fixed: G&AGeneral & Administrative
• Facility Rent/Lease/mortgage• Utilities: heat, lights & electrical, water• Insurance• Advertising• Banking• Salary
No Sales = No Costs
Costs Regardless
Start with Reality
Fixed Costs – G&A
Page 2
GPS: Goals + Performance = Success
GPS: Goals + Performance = Success
<<
Fix
ed
= R
eality
>>
GPS: Goals + Performance = Success
Fill in Monthly Expenses for Each MonthGeneral & Administrative
Code Description Amount50100 Employee - Salary/Wages $ - 50110 Employee - Salary/Wages Incidentials $ - 50120 Employee - Benefits $ - 50130 Employee - Payr.oll Pentalties $ - 50210 Subcontractor - Accounting $ - 50220 Subcontractor - Creative/Marketing $ - 50310 Professional Fees - Legal $ - 50320 Professional Fees - Accounting $ - 50330 Professional Fees - Training $ - 50340 Professional Fees - Memberships/Dues $ - 50410 Auto - Lease $ - 50420 Auto - Fuel $ - 50430 Auto - Insurance $ - 50440 Auto - Taxis/Parking $ -
Jan Feb Mar Apr $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
GPS: Goals + Performance = Success
Total Expenses for Each MonthGeneral & Administrative
Code Description Total Jan Feb Mar Apr50100 Employee - Salary/Wages $ - $ - $ - $ - $ - 50110 Employee - Salary/Wages Incidentials $ - $ - $ - $ - $ - 50120 Employee - Benefits $ - $ - $ - $ - $ - 50130 Employee - Payr.oll Pentalties $ - $ - $ - $ - $ - 50210 Subcontractor - Accounting $ - $ - $ - $ - $ - 50220 Subcontractor - Creative/Marketing $ - $ - $ - $ - $ - 50310 Professional Fees - Legal $ - $ - $ - $ - $ - 50320 Professional Fees - Accounting $ - $ - $ - $ - $ - 50330 Professional Fees - Training $ - $ - $ - $ - $ - 50340 Professional Fees - Memberships/Dues $ - $ - $ - $ - $ - 50410 Auto - Lease $ - $ - $ - $ - $ - 50420 Auto - Fuel $ - $ - $ - $ - $ - 50430 Auto - Insurance $ - $ - $ - $ - $ - 50440 Auto - Taxis/Parking $ - $ - $ - $ - $ -
---- ------- ----- ---- ---- ---- -------- ------- ----- ---- ---- ---- -------- ------- ----- ---- ---- ---- ----
Total ---- ---- ---- ---- ----
Burn
Rate
GPS: Goals + Performance = Success
Burn Rate = Monthly Fixed
What is your burn rate?
Does it match Page 3 number?
$10K - $20K - $30K
GPS: Goals + Performance = Success
Once you know your Burn rate, now you can Plan and Set Goals.
Know your numbers…
#1 = $10K - $20K - $30KLet’s look at three real businesses…Expenses = Reality = Burn Rate
GPS: Goals + Performance = Success
Retailer Snapshot:A. Medium A Retailer @ $780,000/yr.B. Small Retailer @ $264,000/yr.C. Medium B Retailer @ $680,000/yr.
Which business would you want?
A – B – C Vanity?
GPS: Goals + Performance = Success
Medium Retailer A @ $780,000/yr. or $57,859/mo.
Burn Rate: ?
Gross Margin: ?
Profit: ?Break-Even Number?
GPS: Goals + Performance = Success
Medium Retailer A @ $780,000/yr. or $57,859/mo.
Burn Rate: $32,615
Gross Margin: 62%
Profit: 6%Break-Even Number?
Know your Numbers!
GPS: Goals + Performance = Success
GPS: Goals + Performance = Success
GPS: Goals + Performance = Success
GPS: Goals + Performance = Success
GPS: Goals + Performance = Success
Medium Retailer A @ $780,000/yr. or $57,859/mo.
Burn Rate: $32,615
Break-even: $52,605
Minimum Sales per Day: ?
How many days open?
GPS: Goals + Performance = Success
Medium Retailer A @ $780,000/yr.
Burn Rate: $32,615
Break-even: $52,605
Days open per month: 26
Minimum Sales per Day: ?
GPS: Goals + Performance = Success
Medium Retailer A @ $780,000/yr.
Burn Rate: $32,615
Break-even: $52,605
Days open per month: 26
Minimum Sales per Day: $2,023Break-even each day
GPS: Goals + Performance = Success
Daily Break-even Sales Numbers
Monday Tuesday Wednesday Thursday Friday Saturday $-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Daily Sales
SalesGoal
Axis Title
When is the best time to know our performance?
Today or Next Month or Two Months from now?
GPS: Goals + Performance = Success
Small Retailer @ $264,000/yr. or $21,948/mo.
Burn Rate: ?
Gross Margin: ?
Profit: ?Break-Even Number?
GPS: Goals + Performance = Success
Small Retailer @ $264,000/yr. or $21,948/mo.
Burn Rate: $3,372
Gross Margin: 41%
Profit: 26%Break-Even Number?
Know your Numbers!
GPS: Goals + Performance = Success
Small Retailer @ $264,000/yr. or $21,948/mo.
Burn Rate: $3,372? Agree or Disagree?
Depends what they do with their installers when it is slow.
Break-Even = $3,372 + $3,850
GPS: Goals + Performance = Success
GPS: Goals + Performance = Success
GPS: Goals + Performance = Success
GPS: Goals + Performance = Success
Small Retailer @ $264,000/yr. or $21,948/mo.
Burn Rate: $7,222
Break-even: $12,350
Minimum Sales per Day: ?
How many days open?
GPS: Goals + Performance = Success
Small Retailer @ $264,000/yr. or $21,948/mo.
Burn Rate: $7,222
Break-even: $12,350
Days open per month: 26
Minimum Sales per Day: ?
GPS: Goals + Performance = Success
Small Retailer @ $264,000/yr. or $21,948/mo.
Burn Rate $7,222
Break-even: $12,350
Day open per month: 26
Minimum Sales per Day: $475Break-even each day
Know the Rules, WIN the Game!
GPS: Goals + Performance = Success
Daily Break-Even Sales Number
When is the best time to know our performance?Today or Next Month or Two Months from now?
Monday Tuesday Wednesday Thursday Friday Saturday $-
$100
$200
$300
$400
$500
$600
$700
Daily Sales
SalesGoal
Axis Title
Average Sale: $800 (3-4 times average)
GPS: Goals + Performance = Success
Measurement: The importance of measurement can’t
be over-emphasized. If you can’t measure it, you can’t understand
it. If you can’t understand it, you can’t control it. If you can’t control
it, you can’t improve it.-James Harrington
GPS: Goals + Performance = Success
Business ModelBurn Rate: $_____
(month)
Break-even: $_____ (month)
Gross Margin: ___% (product)
Gross Margin: ___% (install)
KPI’s (Key Performance Indicators)
Traffic: ______Sales: $______
(per day)
Avg. Sale: $______ Close Rate: ______%
Know your Numbers!
Medium Business B
GPS: Goals + Performance = Success
Business ModelBurn Rate:
$15,289Break-even: $53,410Gross Margin: 32%
(product)
Gross Margin: 47% (install)
KPI’s (Key Performance Indicators)
Traffic: ______Sales: $______
(per day)
Avg. Sale: $______ Close Rate: ______%
Medium Business B
GPS: Goals + Performance = Success
Business ModelBurn Rate:
$15,289Break-even: $53,410Gross Margin: 32%
(product)
Gross Margin: 47% (install)
KPI’s (Key Performance Indicators)
Traffic: ______Sales: $______
(per day)
Avg. Sale: $______ Close Rate: ______%
Medium Business B
GPS: Goals + Performance = Success
Business ModelBurn Rate:
$15,289Break-even: $53,410Gross Margin: 32%
(product)
Gross Margin: 47% (install)
KPI’s (Key Performance Indicators)
Traffic: ______Sales: $2,055
(per day)
Avg. Sale: $______ Close Rate: ______%
Medium Business B
GPS: Goals + Performance = Success
Business ModelBurn Rate:
$15,289Break-even: $53,410Gross Margin: 32%
(product)
Gross Margin: 47% (install)
KPI’s (Key Performance Indicators)
Traffic: ______Sales:
$2,055 (per day)
Avg. Sale: $273 Close Rate: ______%
Medium Business B
GPS: Goals + Performance = Success
Business ModelBurn Rate:
$15,289Break-even: $53,410Gross Margin: 32%
(product)
Gross Margin: 47% (install)
KPI’s (Key Performance Indicators)
Traffic: ?Sales:
$2,055 (per day)
Avg. Sale: $273 Close Rate: 50%
Medium Business B
GPS: Goals + Performance = Success
Business ModelBurn Rate:
$15,289Break-even: $53,410Gross Margin: 32%
(product)
Gross Margin: 47% (install)
KPI’s (Key Performance Indicators)
Traffic: 15Sales:
$2,055 (per day)
Avg. Sale: $273 Close Rate: 50%
Medium Business B
Eight Numbers
GPS: Goals + Performance = Success
Business ModelBurn Rate:
$15,289Break-even: $53,410Gross Margin: 32%
(product)
Gross Margin: 47% (install)
KPI’s (Key Performance Indicators)
Traffic: 15Sales:
$2,055 (per day)
Avg. Sale: $273 Close Rate: 50%
GPS: Goals + Performance = Success
Key Performance Indicators are those variables that can affect significantly the overall financial
position of your company.
Lead vs. Lag Indicators
GPS: Goals + Performance = Success
Traffic: 15
Sales:$2,055
Avg. Sale: $273Close Rate:50%
Medium Business B
<<< Lead Indicator
<<< Lead Indicator
<<< Lead Indicator<<< Lead Indicator
Real-Time Performance
Vs. Financial <<< Lag Indicator
GPS: Goals + Performance = Success
Traffic: 15
Medium Business B
<<< Lead Indicator
Count it every day.
Probably not every day...
My habits?
Frequency of financial review?
GPS: Goals + Performance = Success
KPI’s = Performance
In Sports, WHEN do we know the score of the GAME?
At the end of the season?At the end of the game?
Real Time?
GPS: Goals + Performance = Success
KPI’s
Real Time!
GPS: Goals + Performance = Success
KPI’s
When the team is behind, what does the coach do?
Time OUT!
Change Play
Change Players
Inspire
GPS: Goals + Performance = Success
KPI’s Time OUT!
Change Play
Change Players
Inspire
Does the coach suit up and play?
GPS: Goals + Performance = Success
KPI’s
How many of you suit up?
GPS: Goals + Performance = Success
Must know our Performance in Real Time
Monday Tuesday Wednesday Thursday Friday Saturday $-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Daily Sales
SalesGoal
Axis Title
?
?
?
Ask yourself the right Questions?
GPS: Goals + Performance = Success
Must know our Performance in Real Time
Monday Tuesday Wednesday Thursday Friday Saturday $-
$50
$100
$150
$200
$250
$300
$350
Average Sale
Avg SaleGoal
Axis Title ?
?
Ask yourself the right Questions?
Scorecard or DASHBOARD
Headbands?
Monday Tuesday Wednesday Thursday Friday Saturday0%
10%
20%
30%
40%
50%
60%
70%
80%
Close Rate
Close Rate
GoalAxis Title? ?
GPS: Goals + Performance = Success
Why is our close rate so low on Friday & Saturday?
How was your day today?
It is not subjective anymore?
Monday
Tuesd
ay
Wed
nesday
Thursd
ay
Friday
Saturd
ay0%
20%
40%
60%
80%
Close Rate
Axis Title
?
GPS: Goals + Performance = Success
How was your day today?
Missed Goal
Made Goal
Exceeded Goal
GPS: Goals + Performance = Success
The Right Questions?What was our Performance yesterday?Do we want these results to continue?
Yes = Do more of what we are doingNo = Change/Stop/Improve what we are doing
0%
10%
20%
30%
40%
50%
60%
70%
80%
Axis TitleScorecard
or DASHBOARD
GPS: Goals + Performance = Success
Three Retail StoresBiz Model Small Medium A Medium B
Revenue $264,000 $780,000 $680,000
Burn Rate $7,222 $32,615 $22,134
Break-even $12,350 $55,000 $53,410
Profit $67,416 $39,096 $0.00
GPS: Goals + Performance = Success
Three Retail StoresBiz Model Small Medium A Medium B
Revenue $264,000 $780,000 $680,000
Burn Rate $7,222 $32,615 $22,134
Break-even $12,350 $55,000 $53,410
Profit $67,416 $39,096 $0.00
KPI’s Small Medium A Medium B
Traffic 2 18 15
Daily Sales $7,222 $32,615 $22,134
Average Sale $800 $214 $273
Close Rate 70% 55% 50%
GPS: Goals + Performance = Success
Pick ONE?Biz Model Small Medium A Medium B
Revenue $264,000 $780,000 $680,000
Burn Rate $7,222 $32,615 $22,134
Break-even $12,350 $55,000 $53,410
Gross Margin 41% 37% 30%
Profit $67,416 $39,096 $0.00
KPI’s Small Medium A Medium B
Traffic 2 18 15
Daily Sales $7,222 $32,615 $22,134
Average Sale $800 $214 $273
Close Rate 70% 55% 50%
Vanity?
Biz Model Small Medium A Medium B
Revenue $264,000 $780,000 $680,000
Burn Rate $7,222 $32,615 $22,134
Break-even $12,350 $55,000 $53,410
Gross Margin 41% 37% 30%
Profit $67,416 $39,096 $0.00
KPI’s Small Medium A Medium B
Traffic 2 18 15
Daily Sales $7,222 $32,615 $22,134
Average Sale $800 $214 $273
Close Rate 70% 55% 50%
Products Line Intelligence
GPS: Goals + Performance = Success
GPS: Goals + Performance = Success
How do you Grow?Biz Model Medium B
Revenue $680,000
Burn Rate $22,134
Break-even $53,410
Gross Margin 30%
Profit $0.00
KPI’s Medium B
Traffic 15
Daily Sales $2,055
Average Sale $273
Close Ratio 50%
Increase Performance
Set New Goals
Track Daily
GPS: Goals + Performance = Success
How do you Grow?Biz Model Medium B
Revenue $680,000
Burn Rate $22,134
Break-even $53,410
Gross Margin 30%
Profit $0.00
KPI’s Medium B
Traffic 15
Daily Sales $22,134
Average Sale $273
Close Ratio 50%
Which goals to improve?
GPS: Goals + Performance = Success
How do you Grow?Biz Model Medium B
Revenue $680,000
Burn Rate $22,134
Break-even $53,410
Gross Margin 30%
Profit $0.00
KPI’s Medium B
Traffic 15
Daily Sales $22,134
Average Sale $273
Close Ratio 50%
>>> 35%
>>> $350
>>> 20
Reasonable?
What would you DO?
GPS: Goals + Performance = Success
Growth Strategy:
Increase Gross Margin from 30% to 35%
Increase Daily Walk-in Traffic from 15 to 20
Increase Average Sale from $273 to $350
Hint: Job Description Objective Above
Net Success Results?
GPS: Goals + Performance = Success
How do you Grow?Biz Model Today +1 +2 +3 +4
Revenue $680K $819K $1.09M $1.09M $1.41M
Burn Rate $15,289 $15,289 $18,000 $18,000 $25,000
Break-even $53,410 $53,410 $57,410 $57,410 $70,410
Gross Margin 30% 30% 30% >35% 35%
Profit (year) $0.00 $54K $111.6K $166K 200K
KPI’s Today +1 +2 +3 +4
Traffic 15 15 >20 20 20
Daily Sales $2,048 $2,625 $3,500 $3,500 $4,550
Average Sale $273 >$350 $350 $350 $350
Close Ratio 50% 50% 50% 50% >65%
GPS: Goals + Performance = Success
Fractional Improvements
Biz Model Before After
Revenue $680K $1.41M
Burn Rate $15,289 $25,000
Break-even $53,410 $70,410
Gross Margin 30% 35%
Profit (year) $0.00 200K
KPI’s Before After
Traffic 15 20
Daily Sales $2,048 $4,550
Average Sale $273 $350
Close Ratio 50% >65%
Daily Scorecard
Real Time
GPS: Goals + Performance = Success
Without daily measurement...
Monday
Tuesd
ay
Wed
nesday
Thursd
ay
Friday
Saturd
ay $-
$1,000
$2,000
$3,000
$4,000
Daily Sales
SalesGoal
Axis Title
...it’s like driving a car using the rearview mirror!
GPS: Goals + Performance = Success
Running my business like this...
...makes for a tough ride.Need to be looking forward!
GPS: Goals + Performance = Success
Running my business like this...
...is open road.Need to be looking forward!
GPS: Goals + Performance = Success
Real Time
Forward Looking DASHBOARD
GPS: Goals + Performance = Success
DASHBOARD • Real-time data• Daily Improvements• Whole team can align• Grow your business• Helps you sleep at
night
GPS: Goals + Performance = Success
Fractional Improvements
Biz Model Before After
Revenue $680K $1.41M
Burn Rate $15,289 $25,000
Break-even $53,410 $70,410
Gross Margin 30% 35%
Profit (year) $0.00 200K
KPI’s Before After
Traffic 15 20
Daily Sales $2,048 $4,550
Average Sale $273 $350
Close Ratio 50% >65%Monday
Wed
nesday
Friday
$- $1,000 $2,000 $3,000 $4,000
Daily Sales
SalesGoal
Axis Title
GPS: Goals + Performance = Success
Service called DASHWORX
GPS: Goals + Performance = Success
Service called DASHWORX
dashworx.avidworx.com
GPS: Goals + Performance = SuccessTrue Story....
dashworx.avidworx.com
DASHWORX first used by Chad Fos, Southern Tint•Wanted to give up•Pack it in!•I’m DONE!•With-in 90 Day•Turned his business around•With-in 6 months•Buying his building•NOW knows what to FOCUS ON
GPS: Goals + Performance = Success
Service called DASHWORX
dashworx.avidworx.com
GPS: Goals + Performance = Success
Working ON your business:– Budgeting Best Practice
• Review Financials 10th – 15th of the month• Have income statement to measure against
budget
– Know your Numbers• Model (burn rate, break even, gross margin)• Revenue, Costs, Profit• Lead (real time) indicators
– Traffic, Sales, Average Sale, Close Rate
• Get a DASHBOARD for your business
GPS: Goals + Performance = Success
Review Financials 10th – 15th of the monthBudget vs. Actual
GPS: Goals + Performance = Success
Review Financials 10th – 15th of the monthBudget vs. Actual
What gets measured, gets managed!
GPS: Goals + Performance = Success
Review Financials 10th – 15th of the monthBudget vs. Actual
Guess what we will do? Then measure actual.Adjust next month goal, based on what we now know.
GPS: Goals + Performance = Success
Review Financials 10th – 15th of the monthBudget vs. Actual
It takes 17-27 times to build a habit.It’s your money, no-one else is going to MANAGE IT
RepeatRepeatRepeat
GPS: Goals + Performance = Success
What to FOCUS ON?
How much does it DRIVE Value?
KPI’s (Key Performance Indicators)
Traffic: 15Sales:
$2,055 (per day)
Avg. Sale: $273 Close Rate: 50%
Human ResourcesProcess• Recruitment• Hiring• Orientation• Performance Management
What are you looking for?“A” Players!
Human ResourcesStart with a.....Job Description– Create a Job Post– Interview and hire– Performance Manage
How many have them?
Human Resources
Job Description Recruitment Orientation PerformanceManagement
Human Resources
Job Description Recruitment Orientation PerformanceManagement
45-60mins
VisionMission
Core ValuesOur Way
Do it!
Human Resources
Job Description Recruitment Orientation PerformanceManagement
45-60mins
VisionMission
Core ValuesOur Way
Do it!
Human ResourcesJob Description Scorecard Structure:• Outcome
What is it that I am here to do?• Responsibilities
What am I responsible for?• Job Well Done
What does good performance look like?
Human ResourcesJob Well Done
What does good performance look like?
S.M.A.R.T.Specific, Measurable, Attainable, Realistic,
Timely
Know the rules, WIN the gameNo one comes to work
to fail!
Human ResourcesExample:
Telephone reception: answer the phone using standard script on third
ring, transfer or take message as required.
Know the rules, WIN the game
Specific, Measurable, Attainable, Realistic, Timely
Human ResourcesExample:
Order Desk: online order administrative processing
Good Performance Looks Like:– orders processed and shipped within 72hrs– client order status requests responded to with
one contact instance within 24hrs– orders are shipped 100% complete
Must be realistic!
S.M.A.R.T?
Specific, Measurable, Attainable, Realistic, Timely
Human ResourcesOutcome
Example:
Sales Person?
Outcome:
I am here to do what?
Biz Model Before After
Revenue $680K $1.41M
Burn Rate $15,289 $25,000
Break-even $53,410 $70,410
Gross Margin 30% >35%
Profit (year) $0.00 200K
KPI’s Before After
Traffic 15 >20
Daily Sales $2,048 $4,550
Average Sale $273 $350
Close Ratio 50% >65%
Human ResourcesOutcome Example:
Sales Person?
Outcome: Increase gross
margin from 30% to 35%, avg. sale from $273 to $350, close
rate from 50% to 65%
Biz Model Before After
Revenue $680K $1.41M
Burn Rate $15,289 $25,000
Break-even $53,410 $70,410
Gross Margin 30% >35%
Profit (year) $0.00 200K
KPI’s Before After
Traffic 15 >20
Daily Sales $2,048 $4,550
Average Sale $273 >$350
Close Ratio 50% >65%
Know the rules, WIN the game
Human Resources
Job Description Recruitment Orientation PerformanceManagement
45-60mins
VisionMission
Core ValuesOur Way
Outcome
Responsible
Good Performance
Look Like
Insert JobDescription
Sell IT!!!!!
Pre-Screen
A-Players
Scorecard
Personality Testing – Call us
Human ResourcesHow to do Performance Management:• Copy the responsibilities onto a sheet• Put ___ or 10 beside each one• Ask team member to score themselves• You either agree or offer your score
and give corrective feedback to getting them on track
• Monthly or Quarterly
Know the rules, WIN the game
Human ResourcesPerformance Management Example:• Telephone reception: ____ of
10• Order Desk: ____ of 10• Customer Service: ____ of 10• Sales: ____ of 10
Know the rules, WIN the game
Budget Strategy
GPS: Goals + Performance = Success
Budget
Measurement
GPS: Goals + Performance = Success
KPI’s
Real Time!
GPS: Goals + Performance = Success
Drive you business like you drive a car
Forward Looking DASHBOARD
GPS: Goals + Performance = Success
DASHWORX
dashworx.avidworx.com
Booth #935
Questions?
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