of Owner-Managed Businesses…
Presented by:
Competitive Advantage Group
Bob French, Ken Nangle, Dale Radcliff
CAgroup.net
(650) 652-9393
Hosted by:
Peninsula Bank of Commerce, Millbrae
Frank Hall
(650) 652-6327
Introductions
Objectives for today
Transfer expertise / knowledge, tools
Content you can use
Share your experiences
Provide us with feedback
Presentation structure / the concept
Review 7 D’s
October 3, 2007 TABsmc.com The Alternative Board
Our Business Growth Model
Planning as a discipline………
Business planning
Strategic planning
Budgeting - forecasting
Succession planning
Exit planning
Take away
In the next week, take the time to create:
A personal vision statement
A business vision statement
A mission statement
A live example:
Financial ratios
Common metrics
Gross Margin
Operating Margin
Net Margin
SG&A Expense Ratio
Current Ratio
Days Sales Outstanding
Dollars in (000's)
Revenue $2,000 100.0%
COGS (1,000)
Dollars in (000's)
Current Assets Current Liabilities
Cash $54 Accounts Payable $110
Accounts Recievable 166 Accrued expenses 78
Inventories 122 Short-term debt 85
Prepaid Expenses 33 Income tax payable 43
Total Current Assets 375 Total current liabilities 316
Shareholders equity
Paid in capital 30
Retained earnings 299
Shareholders equity 329
Take away
Pick two relevant ratios to your business and
begin tracking every month
Identify underlying problem and take corrective
action when you see a deterioration in one or
both measures
Personal Vision
Objectives
Actions
Critical issue
Background