View
176
Download
0
Category
Tags:
Preview:
Citation preview
2. Overview
3. To maximize the value of Our Business.Period! There is no other reason !! Why are we in Business? 4.
Why are we in Business? 5. Todays Economic Environment
MajorDevastating Events of2008 & 2009 6.
Contd Major Events that have provided opportunity forgrowth in 2009 Todays Economic Environment 7.
Todays Economic Environment Major Events that have provided opportunity forgrowth in 2009 8. 2009 PCO Bookkeepers Client Results PCO Bookkeepers The goal of PCO Bookkeepers is to assist in the pest control industry in making effective management decisions by providing meaningful financial information on a timely and cost-efficient basis. In a phrase:Todays Economic Environment WE ARE AN ACCOUNTING FIRM WITH A HIGHLY SPECIALIZED EXPERTISE IN THEPEST CONTROL INDUSTRY 9. Relevance of the PCO BOOKKEEPER Information: Our Data is not the result of a survey where the respondents can skew data either purposely or non purposely. Our data comes from the transactional accounting records found in our clientspestpac ,servicepro ,quickbooks and payroll records that we maintain and create financial statements on a monthly basis. When it comes to operating a Pest Control Firm, purchasing new vehicles or computer systems or making an important decisions, it can be extremely helpful know what other independent PCOs are doing. Todays Economic Environment 10.
Todays Economic Environment Range of Clients: 11.
Revenues: Average Growth for all clients: down about 1% Todays Economic Environment 12.
Profits are way up across the board!! Todays Economic Environment 13.
Conclusion from the DataTodays Economic Environment 14.
Question: Todays Economic Environment 15. Growing Your Bottom Line Business today has become a race to efficiency. Those companies who can become more efficient in managing their businesses will grow their bottom line.Efficiency can be improved througheffective Measurement The length of a piece of string can be measured by comparing thestring against a meter stick Definition : Measurement is collection of quantitative data. A measurement is made by comparing a quantity with a standard unit. Since this comparison cannot be perfect, measurements inherently include error. 16.
Efficiency is not as necessary to grow the top line. In fact growing the top line without profitability is quite easy. Strategies to grow top line without profitability: Growing Your Bottom Line 17. Measuring Quality Service,Customer Retention and Teamwork All Three Factors are interrelated Growing Your Bottom Line Successful Execution bymanaging throughMeasurement Quality Service Customer Retention Teamwork Increased Bottom line 18.
Its pretty obvious that good teamwork allows us to provide quality service for our customers which leads to retention. But if we arent there yet how do we improve? Growing Your Bottom Line Measuring Quality Service,Customer Retention and Teamwork 19. Quality Service
Definition: The customers perception that the Pest Management firms performance meets or exceeds his or her expectations in addition to solving the customers problem. Important Measurement elements include: 20.
Indicators of Quality Service: Quality Service 21.
Quality Service Indicators of Quality Service: 22.
Quality Service Indicators of Quality Service: 23.
Contd. What can be easilymeasured, benchmarked and improved Call Backs: Quality Service 24.
How can Callbacks be measured? Quality Service Every 4 regular services, there is one call back Example : The initial work takes two hours andover the next 6 months there were 2 call backsat hour each Call back ratio is 50% 25.
How can we measure call backs? Quality Service 26. Customer Retention
27.
Important measurement elements include: Customer Retention 28.
Benchmarks to measure Customer Retention Contd Customer Retention Figured: 20K of Advertising divided by 100k of current year customer revenue 20,000 = 20% 100,000 29.
Example Continued 20,000= 11.11% 180,000 Customer Retention 30.
Contd Customer Retention 31.
Customer Retention 32. Measuring Teamwork
Measure it 33.
Measuring Teamwork 34.
Measuring Teamwork 35.
In this manner, we maximize the value of our firm!Remember?This why we are in business Measuring Teamwork 36. Putting it all Together
Acceptable Dollars per hour ------The hallmark of Profitability in the Pest Control Industry 37. Putting it all Together
So lets put it all together and figure outHow to make a Profit!
The pest control business model is based on 2 factors : Putting it all Together 38. Break-Even Analysis Break-Even point= Fixed CostsGross Profit per Hour. in units (service hours) Putting it all Together Putting it all Together 39. Definition Fixed Costs Any cost that remains constant at any volume of business Examples: Rent, Advertising, Utilities, etc. Putting it all Together Putting it all Together 40.
Definition Putting it all Together 41. Gross Profit The difference between the price chargedper Unit (Hour of Service) and the VariableCosts. Example If we bill our service at $100 per hour and a technicians gets $20 per hour and all other variable costs associated with providingthathourofserviceare $30, our gross profit would be $50.(figured: $100 billed less ($20+$30) variable costs). Putting it all Together Definition 42. What Is My Breakeven Point? = Fixed CostsGross Profit per hour. Putting it all Together Breakeven Pointin Units (Service Hours) 43. If rent, utilities and all other fixed costs are $10,000 and we use our $50.00 gross profit per hr examplethanour breakeven point is 200 hours of serviceat a $100 per hour selling price. After 200 hours of service we will start making a profit of $50 per hour.You see the gross profit contributes to paying the fixed costs.Once the fixed costs are paid, the gross profit contributes to bottom line profit.This is the reason some accountants call gross profit the contribution margin. Example Putting it all Together What Is My Breakeven Point? 44. $10,000 Fixed Costs $50.00 Per Hr Variable Costs 200 Hrs to Break Even = Putting it all Together What Is My Breakeven Point? Gross Margin Break-Even Point 45.
Our Gross Margins Shrinks because our dollars per hour falls. Putting it all Together 46.
Thereby increasing ourBreakeven Point Putting it all Together 47. Putting it all Together Real World Example So lets assume that our signature plan isQuarterly Pest Controlthat weve decided will be priced at $ 100 per hour figured:So we sell this Service for (4 X $100)= $400 per Annum 4 services at 45 minutes each=3 Hour 2 call backs each at hr=1 Hour Total=4 Hour 48. Putting it all Together Lets Assume that thequality of service ,team work(efficiency) andretentioncaused us to spend additional call back hours at the original Program Selling Price of $400.00 as below 49. Putting it all Together Draw Your on Conclusionsbut let me leave you with this thought: If we assume one Truck/Technician can perform 120 hrs of on the job work per month 50. Putting it all Together Executing on the Plan! The key to maximizing Profit is through measurement, Benchmarking and defining improvement and then: Successful Execution bymanaging throughMeasurement Quality Service Customer Retention Teamwork Increased Bottom line So Profits are yielded byQuality Service ,Customer RetentionandTeam Work 51. PMP WEALTHBUILDERS.COM Best Business Plan for PCOsWho want to grow their business PCOBOOKKEEPERS.COM ACCOUNTANTS For Growing Pest Control Firms P.O. Box 810 Newton, NJ 07860 Phone: (877) 682-8118 Fax: 866-273-0101 Email: info@pcobookkeepers.com Join us now to grow your business
Recommended