Whats In 30 Day Business Turnaround

What’s in 30 Day Business Turnaround?

Day 1 – What are the Drivers of Cash Flow

  • The 30 Day Business Turnaround challenge.
  • The 20 -10 -10 rule.
  • The two key business activity statements you will be working with.
  • The three basic parts to your profit and loss statement.
  • The four places cash can ‘hide’ in your business.

Day 2 – The Importance of Your Business Model

  • The Financial Fence® way of thinking.
  • Question – Is a business plan more important than a business model?
  • Understanding your “Business Model”
  • How you source and sell to your customers.
  • How you source, and deliver your products and/or services.
  • How and when you pay and get paid.
  • Product mix
  • The Danger of a Flawed Business Model

Day 3 – Count Working Capital

  • The Financial Fence® analogy.
  • Understanding Working capital.
  • A stock take of key items.

Day 4 – Sales by Customer – Risk of Exposure to One Customer

  • The top ten customers in your business.
  • Your level of dependence on your top customer.
  • Things you can learn from your top customers.

Day 5 – Analysis of Sales by Customer 80:20 Exercise

    The top ten customers in your business
  • The 80:20 rule of sales by customer
  • Businesses who don’t get repeat customers
  • The importance of “Amplifiers” in your business

Day 6 – Analysis of Sales by Product/Service

  • A different perspective – Sales by product/service
  • Explanation of the 80:20 rule of sales by product
  • Using the 80:20 rule to analyse your sales by product

Day 7 – Analysis of Sales Product/Service by Major Customer

  • Sales by product/service by major customer
  • Introduce the concept of multidimensional thinking
  • Develop your customer / product matrix

Day 8 – The Difference between Margin and Markup

  • The difference between margin and markup
  • Definition of margin
  • Definition of markup
  • Why theoretical profits and actual profits are often not the same
  • Verifying your actual profit margins

Day 9 – Sales Pricing by Major Customer

  • Sales pricing by major customer
  • Verify your profit margins by product/service

Day 10 – Sales Terms by Major Customer

  • Sales terms for your major customers.
  • The two elements of every sales transaction.
  • Discover the true terms of trade with your major customers.
  • Identify cash hiding in your working capital.

Day 11 – Analysis of Purchases by Major Supplier

  • Purchases from your major suppliers.
  • Matching sales and costs in your profit and loss account.
  • Beginning a review of the cost side of your business.
  • The 80:20 Rule for Suppliers.

Day 12 – Product/Services Costs by Major Supplier

  • Purchases from your major suppliers.
  • Customers – products – supplier mix : a key to your business success.

Day 13 – Purchase Terms by Major Supplier

  • Purchase terms from your major suppliers.
  • The two elements of every purchase transaction.
  • A self assessment exercise.
  • Discover the true terms of trade with your major suppliers.
  • Identify another cash source hiding in your working capital.

Day 14 – Analysis of Interaction Labour in the Business

  • Interaction labour.
  • People – a key component to your business success.
  • An easy way to establish which employees are good for your business.
  • The 80:20 rule for your staff.
  • Financial measures related to people costs.
  • Discover your interaction labour to sales ratio.

Day 15 – A Little Surprise

Day 16 – Returns a Business Owner Should Receive From Their Business

  • Two returns a working business owner should receive from the business.
  • The problem with “Sweat Equity” in your business.
  • Discover the impact of your true value on your business costs.

Day 17 – Calculation of 20% Contribution Margin for Sample Customers

  • The definition of contribution margin.
  • Understanding contribution margin for different businesses.
  • Two aspects of running your business.

Day 18 – Interaction Costs – Factory, Marketing and Distribution Costs

  • Other interaction costs.
  • How increasing choice is forcing a paradigm change in marketing.
  • The impact of FREE in a business.
  • The changing face of distribution.

Day 19 – Employees Costs Included in Infrastructure

  • A new section on the top rail of The Financial Fence®
  • Employee costs included in Infrastructure.
  • Business owners costs usually not included in infrastructure costs.

Day 20 – Infrastructure Costs

  • A frugal approach to infrastructure costs.
  • Infrastructure costs on The Financial Fence®.
  • Infrastructure costs – all cost not included in interaction except interest.

Day 21 – Finalise 20 – 10 – 10 for Key Customers

  • Finalising the top rail of your financial fence.
  • Business resource allocation.
  • Four places the money hides in your business.

Day 22 – Where’s the Money Gone?

  • The four places where money hides in your business.
  • Losses and lack of profits.
  • Build up of the 3 types of Inventory.
  • Overdue accounts receivable.
  • Inappropriate level of accounts payable.

Day 23 – Beginning the Key Performance Indicators

  • Understanding Key Performance Indicators.
  • Your progress in liberating cash from your business into your bank account.
  • The Financial Fence® Diagnostic tool.
  • The 20-10-10 Key Performance Indicators.

Day 24 – Matching Your Activity to the Milestone on Your Fence

  • A review of your progress in liberating cash into your bank.
  • KPI’s that relate activity to milestones.
  • Working Capital to Sales.
  • Sales to Total Capital.

Day 25 – How Do I know I’m Successful?

  • Your progress in liberating cash into your bank account.
  • The overall top indicator for success in your business.
  • Comparing ROS and ROC.
  • Our benchmark for Return on Capital.
  • Why we use ROC for our primary measure of business performance.

Day 26 – How Much Debt Should I Have in My Business?

  • Your progress in liberating cash into your bank account.
  • Understanding Leverage.
  • The Loan to Value Ratio (LVR).
  • The Debt to Equity Ratio.
  • Understanding the true debt position of your business.

Day 27 – Explanation of the Fence Diagnostic

  • Why you don’t have to be a mechanic to drive a car, AND…
  • The Financial Fence® as a business diagnostic.
  • The Financial Fence® way of thinking.
  • How The Financial Fence® works.
  • Online help tailored to your specific business situation.

Day 28 – Monthly Profit and Loss Information

  • Choosing the period of activity you will use for your first diagnostic.
  • Obtaining the data you will need to answer your activity questions.

Day 29 – Count Closing Working Capital

  • Counting your closing working capital.
  • Remember to count your work in progress.

Day 30 – Load Your Business Diagnostic and Review it

  • How it can take time for some changes to have their full impact.
  • Two rules to consider when measuring your business.
  • Loading your diagnostic data.
  • Congratulations and what’s next?