Transcript of August Call 3 rd Wednesday each month Kris Fuehr Director, Advisor Network Corelytics ...
- Slide 1
- August Call 3 rd Wednesday each month Kris Fuehr Director,
Advisor Network Corelytics www.corelytics.com kris@corelytics.com
425-830-0867 Frank Coker CEO CoreConnex, Inc. www.corelytics.com
frank@corelytics.com 425-454-5006 Keep current in our LinkedIn
Group: This deck and recorded webcast are available hours after
todays event Search LinkedIn: Corelytics Advisor Network
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- Agenda Fitting Corelytics into your business New Bank-hosted
Lunch & Learns Corelytics Trials become Test Drive Video trials
Industry -- your declared primary/secondary industry? New Vital
Signs Report Your feedback? 3 volunteer advisors to test Financial
Strength Analytics on 2 clients. Report to client. Corelytics
Advisor Program Overview (Newcomers)
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- Fitting Corelytics In 1.Monthly engagements with prime clients:
Customers on the move borrowing, acquiring, preparing to sell
Competitive, high-growth Frustrated with financial statements
Digital Natives 2.Putting your junior consultants in training to
enable a more strategic conversation (with training wheels)
Evaluating opportunities Flagging scenarios where special projects
are needed Building relationship and skills 3.As a monthly lead
source to higher billable projects Small steps lead to big steps
The monthly meeting enables you to spot service opportunities each
month: tax planning, goal-setting, valuation, sales consulting,
leadership development, etc.
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- New Bank Lunch & Learns Local bank branch ADP co-hosted
Advisor speaker Corelytics speaker (travel permitting) Bank-invited
guests Industry-focused 10-pack Advisors qualify to speak on
industry topics
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- Trial New Test-Drive Video Corelytics trials are no longer a
public offering (case-by-case if needed for advisors) Test Drive
video serves this purpose Available next week
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- Industry Focus 1.IT Service (5 Lines of Business = LOBS)
Service Project Time & Materials Product Other 2.Restaurant (5
LOBS) Food Beverage Retail Offers/Coupons Other 3.Telecom (10 LOBS)
Maintenance Contracts Time & Materials Voice System Sales
Commission Sales Structure Cabling Managed Services Project Time
& Materials Product Resell Other 4.Audio Visual (7 LOBS)
Integration Service Consulting & Design Product Sales Staging
Rental Other 5.General Business (Default LOB Set) 6.Accounting
(Default LOB Set) 7.General Business (Default LOB Set)
8.Advertising (Default LOB Set) 9.Architecture & Engineering
(Default LOB Set) 10.Automotive Repair and Maintenance (Default LOB
Set) 11.Biotech (Default LOB Set) 12.Business Consulting (Default
LOB Set) 13.Construction: Non- Residential (Default LOB Set)
14.Construction: Residential (Default LOB Set) 15.Dental (Default
LOB Set) 16.Dry Cleaning and Laundry Services (Default LOB Set)
17.Electrical Engineers & Contractors (Default LOB Set)
18.Event Planning (Default LOB Set) 21.Industrial Design (Default
LOB Set) 22.Interior Design (Default LOB Set) 19.Graphic Design
(Default LOB Set) 20.Gym / Fitness (Default LOB Set) 23.Landscape
Design & Services (Default LOB Set) 24.Legal Services (Default
LOB Set) 25.Management Consulting (Default LOB Set) 26.Medical Labs
(Default LOB Set) 27.Non-Profit (Default LOB Set) 28.Optometrists
(Default LOB Set) 29.Physicians: General Practice (Default LOB Set)
30.PR Firms (Default LOB Set) 31.Real Estate Agents / Brokers
(Default LOB Set) 32.Real Estate Leasing (Default LOB Set)
33.Retail (Default LOB Set) 34.Salon / Spa (Default LOB Set)
35.Software Development (Default LOB Set) 36.Sports / Recreation
(Default LOB Set) 37.Surveying & Mapping (Default LOB Set)
38.Technical Product Manufacturing (Default LOB Set) 39.Travel /
Tourism (Default LOB Set) 40.Tree / Plant Nurseries (Default LOB
Set) 41.Veterinary Services (Default LOB Set) 42.Wholesale: Durable
Goods (Default LOB Set) 43.Wholesale: Non-Durable Goods (Default
LOB Set) Tell me your 1-3 top industries kris@Corelytics.com so we
can match you with those leads (3-pack and up)
kris@Corelytics.com
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- Trends comparisons Expenses to revenue Assets to Liabilities
Financial strength metrics Problem area spotlights Potential
problems in red Top 3 problems highlighted
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- Working Capital Test Building value Understanding the balance
sheet Managing trends Setting base lines
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- Participate in co-marketing
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- OVERVIEW OF THE ADVISOR NETWORK For Newcomers
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- NextGen Accountants Subscription-based services Compares client
performance Offers diagnostic services Supports strategic decisions
Serves clients year-long Aides in sharing performance with clients
staff Often works remotely Gives clients an owner-view
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- Advisor Value More value Less time data-wrangling New
value-added services Marketing, sales & tech support 30
clients, 1 hour/month, $300/mo each client = $100K supplemental
annual revenue
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- Typical Advisor Offerings Subscription-based pricing, usually
$300-500/month whereby the advisor remotely consults through
monthly or quarterly recurring meetings by logging into the
dashboard, reviewing trends for a few minutes before the call, then
jointly logging in and reviewing with the client for an hour. This
is a 2-hour/month investment of your time at most per client. When
client needs rescuing or more help, standard consulting rates
apply. Promotional offer, typically a free initial consultation
(phone or in person) and often coupled with a custom Financial
Report derived from the numbers you get from the dashboard. For a
time (until we hit capacity), we can run these for you on request.
Reports and Summaries: Sometimes as simple as a blog, others do
webinars with the findings from their industry. Were doing an
Advisor Call Wed this week to talk about Building your Brand and
this is a key component. + an industry affiliation AND a
relationship with the top 2 or 3 associations in your
industry.
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- Your ecosystem for growth Corelytics aggregate industry data
Industry associations Clients & association members
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- Getting Started Decide if you pay or client pays for dashboard
Set up your offerings and pricing Get your first 3 clients (well
set them up with you) Co-market/sell, certify, specialize, more
$79/mo $60/mo $99/mo retail direct
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- Meet Others, Share the Ride Join Gina Fridays with other
Dashboard Advisors Gina Rodkey ginasvbook@gmail.com for Google
Hang-out instructions.ginasvbook@gmail.com
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- Call for Stories! Seeking interviews with customers for book
(not necessarily Dashboard users) Stories of metrics gone wrong and
metrics gone right Industry overviews from experts (Advisors,
thought-leaders) Publish date: Dec 2013
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- 1-Minute Conversation Starters now available 1.Value to
Advisors WITH Customers 2.Unlock your data 3.Trends 4.Projecting
your Performance Access them from
www.corelytics.com/vidshortswww.corelytics.com/vidshorts Request
more topics from: kris@corelytics.com
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- Top 10 Areas to Investigate w/Clients Corelytics top 10 things
to investigate each month 1.Revenue trends look at the leading
indicator (6 month trend) and at the 24 month trend to see where
the curve is bending. Whatever the long term growth trend is, the
leading indicator is bending that curve up or down. Taken together
these curves tell you a lot about where the company is headed.
Caution: the goal cant be to only increase revenue. Increasing
revenue can drive a company into the ground if everything else is
not working correctly. More companies die from increased sales than
from flat or even slowly declining sales. Solutions must be
holistic. 2.Expense to revenue trend compare the 24 month revenue
growth rate to the 24 month expense growth rate; if expenses are
growing faster than revenues the company is not sustainable in the
long-term. 3.Revenue / expense forecast on the revenue forecast
screen click on expenses (red box) and see how the expense trend
lines up with the high and low performance scenarios. If these
lines cross, that is a highly important clue that expenses and
revenues trends are on a potential collision course. 4. Short-term
cash trend go to the cash leading indicator to see where cash is
headed in the short-term. The cash leading indicator shows your
average cash balance at the end of the month compared with average
monthly revenue in the past 3 months. Ideally a company should have
the equivalent of more than one month of revenue in cash. The Cash
leading indicator should ideally show a number greater than 100%
under actual, but all too often companies operate close to the
line. If they are nearly out of gas, nothing else matters.
5.Long-term cash trend go to balances, cash and look at the 24
month trend line to see how cash is tracking with revenue and
expense. If the long-term cash growth percent is less than the
long-term revenue growth trend, you are looking at a company that
is not healthy. It means that the company is not building cash. If
a company cant build cash over time, there is a clue that they are
not managing their resources and they are putting their company at
risk by not conserving cash.
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- 6.Margin growth compare the 24 month margin growth rate with
the 24 month revenue growth rate. If revenue is growing faster than
gross margin, the company is actually losing ground as it grows.
Companies in this condition should stop revenue growth and should
focus on underlying costs (specifically on COGS) and figure out if
costs are too high or prices are too low. The underlying problem
should be fixed before the company pushes for growth. 7.COGS
validation be sure that all direct costs are mapped to COGS, if
not, you will not know if your pricing is correct and you will not
know where to make adjustments to improve net profit. 8.Profit
growth if revenue is increasing faster than profit, your company is
working harder and you are getting smaller profits as you grow and
basically have a business that is going downhill. This is generally
a big clue that the business is fundamentally unhealthy. This
problem should have been noticed in one of the earlier steps, but,
if not, this is the final proof that the company is either healthy
or unhealthy. if your COGS are accurate and your gross margin is
increasing faster than revenue, then the only thing left that will
improve profits is a reduction to overheads. 9.Progress against
goals and big problems are going to be discovered in the prior 8
steps. The big problem areas need to have goals. Then each month,
review progress against the most important goals. Only focus on 2
or 3 goals per month. The charts showing progress toward goals
should be copied to a word document or a slide and shared with the
broader management team. They need to see the gap between actual
and goal and they need to participate in closing the gap. The gap
should be monitored every month until progress is made and the gap
is on a track to close. [Recommendation set the start date for
growth goals to at least 6 months in the past; 12 months is better.
That way you can see much more clearly how trends compare with
goals over the long term. Goals are not the same as a budget. They
are there to show desired direction.] 10.LOB performance dont dig
too deep into LOB performance until the company is comfortable with
the combined view of their financials. The goal of LOB analysis is
to find the LOB that is contributing the most to profitability and
the one that is performing the worst. Thought should then be given
to maximizing winners and minimizing losers.
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- Thanks! Kris Fuehr Marketing Director Corelytics, Inc.
www.corelytics.com kris@corelytics.com 425-830-0867 Frank Coker CEO
CoreConnex, Inc. www.corelytics.com frank@corelytics.com
425-454-5006