Earned Income Versus Cash Flow Top Seminar 2008 Earned Income Versus Cash Flow

1 Studio – 4 Lines of Business Lessons 1st Resonsibility Merchandise A Students Commitment to their lessons Competitions An additional Reason to learn to dance Other Showcases Starlites Trips - ETC

Managing Your Businesses Why Compare Swar Info to Financials Manage our business on projections How Re-active management (problem solving) Knee Jerk Responses

Factors to Planning Cash Flow Prepaid Report Balance of lessons to be taught out Balance of money to collect from Students SWAR - Enrollments Originals % of enrollments based on Performance If we change nothing then nothing changes Financials Cash Balance Monthly Gain or Loss Projections Calculating Average Earned Inc. Per Lesson Cost per lesson

SWAR Versus Profit/Loss Statements Swar Reports Profit / Loss Statements Statistical Information Numbers Taught Earned Income Achieved Enrollment Information Anticipated Earned Income Actual Earned Income Staff Performances Cash in Lessons Taught Out Line of Business Lessons Merchandise Competition Other Cash Basis Accounting Cash In the Door Monthly Expenses Expenditure Trends Revenue Trends Analysis Cost Per Lesson Income Per Lesson Average lesson Rate Projected Cash Flows How many people here review their SWAR Information on a regular Basis How many people here review their Financial Statement Information on a Monthly Basis. How many people keep their SWAR information in the same place as they keep their financial information?

Cash Basis Versus Accrual

Studio Expenditures Should Net Exceed Your Ability to Earn Don’t Confuse Cash with Long Term Profit Manage Your Expenses to your Earned Income

Statistical Usage Average Earned Lesson Rates Earned Average Cost Per Lesson Established Earned Income can set limits to spending Preventing the “We’ve got to cover Payroll” scare Management decisions on expenses can be illustrated immediately In average lesson rates Manager Bonus Additional Monthly Contracted Services Individual Performance – Instructor profitability Established Budgeting Rates Lesson Rate effectiveness 4 – Isolated businesses which direct your actions.