February Call 3rd Wednesday each month

Kris FuehrVice president, MarketingCorelyticskris@corelytics.com425-830-0867

Frank CokerCEOCorelyticsfrank@corelytics.com425-454-5006

Keep current in our LinkedIn Group

This deck and recorded webcast

are available hours after today’s event

Search Groups for: “Corelytics Advisor

Network”

Dial in Number: (949) 202-4265Attendee PIN: 6633495#

Agenda• Modeling your clients’ business

• Benefits of working with CorelyticsGuests stay for an introduction to the Corelytics Advisor Network (veterans can drop off the call.)

Modeling

• See patterns• Client loads• Client types• Drill down• Achieve

Balance

Basic Survival NeedsCash available to pay bills and compensation; Bank account

Market Visibility, Recognized BrandUse KPIs and Metrics to Optimize Business

Industry/Profession EngagementUse Benchmarks and Best Practices to Compare Performance

Safety NeedsCredit cards and LOC; Accounting with Financial Statements

Industry LeadershipBI-driven Management; Use Predictive Analytics and Forecasting

Maslow’s Hierarchy of NeedsFor Business Organizations

Key messages for my clientsCreate a monthly summary to communicate priorities

Set goals

Show progress

Set priorities

Assign responsibilities

Top 10 Areas to Investigate w/Clients1. Revenue trends2. Expense to revenue trend3. Revenue / expense forecast4. Short-term cash trend5. Long-term cash trend6. Margin growth7. COGS trends8. Profit growth9. Progress on key goals10. LOB Performance

TIPS- Stop when you have “big 3”- Avoid drilling with owner- Push “solving” to managers- Make process consistent

Interested?Existing advisors: • Participate in our beta roll-

out (now) • Beta participants will be

involved in giving feedback on our pricing

• Request a pilot setup: frank@corelytics.com

• Your request will be queued and prioritized based on your volume of accounts

New to Corelytics?• Set up your first 3 accounts• Get in queue at that point

*Custom options are available.

OVERVIEW OF THE ADVISOR NETWORK

For Newcomers

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

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. We’re 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.

Getting Started Decide if you pay or client pays for dashboard Set up your offerings and pricing Get your first 3 clients (we’ll set them up with you)

Co-market/sell, certify, specialize, more…

$79/mo $60/mo

$99/mo retail direct

Thanks!

Kris FuehrMarketing DirectorCorelytics, Inc.www.corelytics.comkris@corelytics.com425-830-0867

Frank CokerCEO

CoreConnex, Inc.www.corelytics.com

frank@corelytics.com425-454-5006

Industry Focus1.IT Service (5 Lines of Business = LOBS)◦Service◦Project◦Time & Materials◦Product◦Other2.Restaurant (5 LOBS)◦Food◦Beverage◦Retail◦Offers/Coupons◦Other3.Telecom (10 LOBS)◦Maintenance Contracts◦Time & Materials Voice◦System Sales◦Commission Sales◦Structure Cabling◦Managed Services◦Project◦Time & Materials◦Product Resell◦Other4.Audio Visual (7 LOBS)◦Integration◦Service◦Consulting & Design◦Product Sales◦Staging◦Rental◦Other

5.General Business (Default LOB Set)

6.Hotels (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)

Call for Stories!

Seeking interviews with customers for book (not necessarily Dashboard users)

Stories of stagnant small business

Industry overviews from experts (Advisors, thought-leaders)

Publish date: Dec 2013

Top 10 Areas to Investigate w/ClientsCorelytics 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 can’t 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 can’t 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.

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 – don’t 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.