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Business Conditions – Worst Since ? Records Began ? The Great Depression ? The Founding of the State ? The 1970s We last won a Grand Slam ?

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Presentation on theme: "Business Conditions – Worst Since ? Records Began ? The Great Depression ? The Founding of the State ? The 1970s We last won a Grand Slam ?"— Presentation transcript:

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2 Business Conditions – Worst Since ? Records Began ? The Great Depression ? The Founding of the State ? The 1970s We last won a Grand Slam ?

3 Getting Started – What are my costs? Need Good Business Management Information Turnover v Bottom Line – Change of Focus How do I get this information? Get Last Years Accounts – either 2007 or 2008 List all Income & Expenses on Spreadsheet Jan & Feb 2009 input estimate 1.Accounting System eg Sage 2.Cheque Stubs Produce Monthly Income & Expenditure >

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5 Cost Control - General Tips Becoming an Expert on each cost Line by Line – One at a time Mind Set – Intolerant of losses What am I getting for spending this Money? Owner must sign every cheque Watch Bank Balance Constantly – Weak Cash Flow is greatest source of business failure in recession

6 Working Capital – Cash is King Reduce Stocks to absolute minimum Stock Disposal Programme for old Stock – Turn into cash Accounts Receivable – proactively manage to reduce - offer early payment discounts Obtain cash discounts for payments Vital – Produce a Cashflow Statement

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8 Control Cost of Sales

9 Banking Costs Banking On-line – Watch Balance Pay on-line Credit Card Charges- Negotiate fee Promote Laser Cards Referral Fees 4.44 per item – Try & work within Agreed limits – eg 18% unapproved overdrafts – v 1.5% ECB rate

10 Light & Heat Costs Consider Other Suppliers BordGais/Airtricity/Energia – 10% to 12% Understand bills- Wattage – What are you paying for? Energy Saving Bulbs – 95%

11 Telecomm. Costs Become an expert – (Again) Understand Tarriffs Mobile to Mobile – Yes Landline to Mobile - ? Number of Phone Lines – Rental of 1 Phone line 21 per month = 764 gross sales at 42% margin

12 Marketing / Advertising Costs Print v On-Line E- Shots Consider outside help – Marketing expertise What am I Getting for spending this money

13 Insurance Costs Business Insurance to trend upwards again Watch Valuation of Buildings Watch Stock Valuations Watch Turnover levels Watch Employee Levels Talk to Broker and become Expert

14 Rents - Premises Sub-let part of unutilised premises Try to renegotiate existing leases even if some way to go - 20% reductions becoming commonplace Good tenant paying reduced rent better than no rent - Landlord costs down

15 Accountancy Costs Get Quote each Year Move to Audit Exempt if company Discuss what info you can provide to keep fees down for upcoming year

16 Drawings / Directors Salary Costs Apply same techniques at home to drive down one of your businesses biggest expenses - Yourself

17 Conclusion Dont Panic Put in Place Estimated Monthly P&L Know Your Costs – Review Line by line Know your Break even Know your Cash flow Become lean, mean and ready for the upswing


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