QUICK n EASY BUSINESS FINANCE for ENTREPRENEURS

Coach Cynthia Wihardja• Accelerating success with proven systems

• 20-year experience in business turnarounds, marketing and entrepreneurship

• Business Coach & Firm Owner of ActionCOACH South Jakarta

• Master NLP Practitioner

• Author of “It’s My Career. I Decide.”

• Coach’s Coach & Speaker in 13 Countries in Europe, Asia, Americas

• First & only woman in Global Hall of Fame

I dunno. But you look pretty

healthy to me…

I dunno. But it looks pretty profitable to me…

If you don’t know the score, you don’t know if you’re winning or losing.

Keith Cunningham

3 MAJOR SCOREBOARDS

BALANCE SHEET PROFIT & LOSS

CASHFLOW

THINGS & STUFF WHAT I OWE

WHAT I OWN

Cash Inventory Receivables

Plant Property Equipment Intellectual Property

Bank Other Lenders Suppliers Tax

Startup Capital Retained Profits This Month’s Profits

BALANCE SHEET

ASSETS LIABILITIES

EQUITY

Cash Inventory Receivables

Plant Property Equipment Intellectual Property

Bank Other Lenders Suppliers Tax

Startup Capital Retained Profits This Month’s Profits

BALANCE SHEET

Is my Balance Sheet HEALTHY?

• Healthy Operating Cashflow

• Healthy Cash vs Debt Ratio

• Healthy Profit Reserves

PROFIT &

LOSS

REVENUE

Variable Cost

Gross Profit

Fixed Costs

EBITDA

Depreciation Amortization Tax

NET PROFIT

100

(40)

60

(30)

30

(3) (2)

(10)

15

1000

(500)

500

(350)

150

(20) (15)

(100)

15

PROFIT &

LOSS

REVENUE

Variable Cost

Gross Profit

Fixed Costs

EBITDA

Depreciation Amortization Tax

NET PROFIT

100

(40)

60

(30)

30

(3) (2)

(10)

15

1000

(500)

500

(350)

150

(20) (15)

(100)

15

USEFUL NUMBERS

1. BREAK EVEN POINT

2. PROFIT BREAK EVEN POINT

3. % of EVERYTHING to REVENUE

4. MAXIMUM UTILIZATION

Is my Profit & Loss HEALTHY?

• You’ve got Profit

• Better Efficiency of Operations

• Things that are supposed to be FIXED stay relatively FIXED

5 Ways to Boost Profits

Leads x

Conversion Rate =

Clients x

No. of Transaction x

Average Sale =

Revenue x

Margin % =

Profit

4000 x

25% =

1000 x 2 x

$100 =

$200,000 x

25% =

$50,000

5 Ways to Boost Profits

Leads x

Conversion Rate =

Clients x

No. of Transaction x

Average Sale =

Revenue x

Margin % =

Profit

4000 x

25% =

1000 x 2 x

$100 =

$200,000 x

25% =

$50,000

4400 x

27.5% =

1210 x

2.2 x

$110 =

$292,820 x

27.5% =

$80,525

61%

MOR

E PRO

FITS

4 M TO INSTANT PROFITMANAGEMENT

MONEY

MERCHANDISE

MARKETING

OPERATING CASH

CASHFLOW

INVESTING CASH

FINANCING CASH

revenue + expenses -

sell assets + buy assets -

borrow + pay loans -

OPERATING CASH

CASHFLOW

INVESTING CASH

FINANCING CASH

revenue + expenses -

sell assets + buy assets -

borrow + pay loans -

Sales is VANITY Profit is SANITY Cash is KING! Keith Cunningham My “Rich Dad”

Pay Attention to Your CASHGAP!!

WHERE IS

CASH HIDING

IN YOUR BUSINESS?

RECEIVABLES

SIMPLE RULES OF CASH

INVENTORY

PAYABLES

EXPENSES

Is my Cashflow HEALTHY?

• The operating cash increases

• You can pay your debt on time

• You don’t need to keep injecting cash into the business for daily operations

• Your cash is not tied up in dead inventory or receivables

The only reason to produce SALES

The only reason to produce SALESis to get PROFITS.

The only reason to produce SALESis to get PROFITS.

But profits ain’t nothin’ unless it turns into CASH.

The only reason to produce SALESis to get PROFITS.

But profits ain’t nothin’ unless it turns into CASH.

Operating CASH !

1999 2000 Q1 2001 Q2 2001

NET PROFIT 827 896 405 788

EPS 1.10 1.12 0.49 0.94

CASH 288 1,374 1,086 847PRICE PER

SHARE $61

THE REAL WORLD

March 12, 2001 $61.27 “Better buy it” (JP Morgan)

March 21, 2001 $55.89 “Strong buy” (Goldman Sachs)

March 29, 2001 $55.31 “Great buy” (Credit Suisse)

June 8, 2001 $51.13 “Recommend it” (Bear Sterns)

June 15, 2001 $47.26 “Better buy it” (JP Morgan)

July 1, 2001 $44.88 “Better accumulate it” (Bank of America)

Aug 30, 2001 $40.25 “Strong buy” (Sanders Norse)

Sep 6, 2001 $30.49 “Long term buy” (Merryl Lynch)

Oct 3, 2001 $33.49 “Great attractive buy” (JP Morgan)

Oct 4, 2001 $33.10 “Better buy it” (Goldman Sachs)

Oct 11, 2001 $31.79 “Great buy” (Bear Sterns)

Oct 22, 2001 $20.65 “You better buy it” (CIDC)

Oct 24, 2001 $16.41 “Long term buy” (Lehman Bros)

Oct 25, 2001 $16.35 “Market Perform” (JP Morgan)

Nov 1, 2001 $11.99 “We’re neutral” (Bank of America)

Nov 12, 2001 $9.24 “Hold on” (Merryl Lynch)

Nov 21, 2001 $5.01 “Hold your position” (Bear Sterns)

Nov 28, 2001 $0.61 “Hold on” (Goldman Sachs)

Nov 29, 2001 $0.36 “Hold on” (Credit Suisse)

Dec 2, 2001 $0.00

Oct 11, 2001 $31.79 “Great buy” (Bear Sterns)

Oct 22, 2001 $20.65 “You better buy it” (CIDC)

Oct 24, 2001 $16.41 “Long term buy” (Lehman Bros)

Oct 25, 2001 $16.35 “Market Perform” (JP Morgan)

Nov 1, 2001 $11.99 “We’re neutral” (Bank of America)

Nov 12, 2001 $9.24 “Hold on” (Merryl Lynch)

Nov 21, 2001 $5.01 “Hold your position” (Bear Sterns)

Nov 28, 2001 $0.61 “Hold on” (Goldman Sachs)

Nov 29, 2001 $0.36 “Hold on” (Credit Suisse)

Dec 2, 2001 $0.00 ENRON files bankruptcy

1999 2000 Q1 2001 Q2 2001NET PROFIT 827 896 405 788

CASH

Operating 1,228 4,779 (464) (1,337)Investing (3,507) 4,264 1,124 (1,161)Financing 2,456 571 1,300 1,971

They told you… but you didn’t understand

1999 2000 Q1 2001 Q2 2001NET PROFIT 827 896 405 788

CASH

Operating 1,228 4,779 (464) (1,337)Investing (3,507) 4,264 1,124 (1,161)Financing 2,456 571 1,300 1,971

They told you… but you didn’t understand

Oregon Newspaper:As 2001 started, Tim Ramsey felt like a million bucks. As a 55 year old electrician, Tim was ready to take early retirement from the money he saved for 30 years amounting to almost $2.5 million. At the end of 2001, Tim’s retirement funds collapsed to nothing more than $10,000. “I was a big sucker,” Tim says, “ for some reason, I listened to those people. I should have my butt kicked.”

Who is ActionCOACH?• Proven strategies for increasing business results, building

systems, and improving team performance

• Accelerating Your Success through Proven Systems to Reduce Costly Trial & Error

• Help you create a more sustainable business & achieve your personal dreams

• The only Business Coaching Firm in the World that GUARANTEES RESULTS in 17 WEEKS

• Founded in 1993 by Brad Sugars with a vision of World Abundance through Business Re-Education

• 750 coaches in 60 countries

• Top awards for franchisee satisfaction, contribution to business community and top brand for business coaching

Indonesia Firm of the Year 2014 Global Hall of Fame 2014

IntegrityCOACH 2014 Coach of the Year 2013

Executive Coach of the Year 2012

TeamCOACH of the Year 2012 NetworkCOACH of the Year 2012

Indonesia Improvement Award 2012 AbundanceCOACH 2009 ActionMAN Award 2008

I

BUSINESS FINANCE

Thanks, Keith Cunningham!!

— Jim Rohn

“Never wish life were easier. Wish that you were better.”

For a complimentary profit and cashflow diagnosis, contact info@actioncoachsouthjakarta.com