Unlock the Secrets of a Million Dollar Company
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Transcript of Unlock the Secrets of a Million Dollar Company
Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Biz2Credit
Hidden Profit Prophet.com
Dawn Fotopulos- Host
BUILD $MILLION DOLLAR
BUSINESS YOU CAN SELL
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Biz2Credit Webinar Trifecta
Hidden Profit Prophet.com- Dawn
Fotopulos
50% More Profits in 5 Weeks- Net Income
Statement
100% More Cash Flow in 5 Weeks- Cash Flow
Statement
Build $Million Dollar Business You can Sell-
Balance Sheet
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Who the heck is Dawn Fotopulos?
Award-winning author Accounting for the Numberphobic; A Survival Guide for Small Business Owners AMACOM Books
Associate Professor of Business, The King’s College, NYC
Former V.P. Citibank
Serial entrepreneur, real estate investor, hedge fund partner
Passionate about #SMB survival in any economy
The “Hidden Profit Prophet”
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build $Million Dollar Business
“A business is all about the numbers.
Most businesses could make it if the
owners knew even the very basics
of reading their financial dashboard.”
Interview with
Norm Brodsky
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Build $Million Dollar Business
The 3 big questions… Are you making a profit?
Is there enough cash to run the business?
Is the business building wealth or destroying it?
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build $Million Dollar Business
Your financial dashboard
Three Key Gauges: Net Income
Statement
Cash Flow Statement
Balance Sheet
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Balance Sheet- Your Business Net Worth
Net Worth Equation
Assets= Own
Liabilities= Owe
Owner’s Equity= Worth
Own- Owe= Worth
Your home- outstanding mortgage=
equity or net worth
Personal and business- same
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Balance Sheet- Your Business Net Worth
Assets, Liabilities, Owner’s Equity
Asset base is the key- bigger, faster
growing is better
Liabilities need to be in healthy
ratios
Owner’s Equity is why you’re in
business
Assets- Liabilities= Owner’s
Equity
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
Start with the end in mind: $1Million
valuation- Net Worth
Who buys businesses?
Your competitors
Your loyal staff members
Your relatives
Your suppliers
Buyers are buying the future
Buyouts are rarely for cash
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
Don’t wait until the heart
attack comes……
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
Start with the end in mind
You are not sacrificing your life to
pay bills and die!
You need a 5 year off ramp to
maximize value
Tension between lowering yearly
taxes and terminal valuation
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
Start with realistic assumptions
“Your baby is ugly”- buyer pays
cheapest price
“Your baby is beautiful”- seller asks
highest price
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
Get your house in order
Business must be a going
concern,
Documented audited #’s
Transferable- clear title for
conveyance
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
ABC Shark Tank is all about
valuation
What is it? How is it different/
better?
Strength of competition?
Customer base?
Revenues?
Gross margins?
Cash flow?
Growth rates?
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
How an investor looks at your
business:
Multiples of cash flow
Multiples of profitability
Client base-size, loyalty, gross
margin
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
Why Instagram was sold for $1Billion
Buyers are lazy; they want to buy a client base
Buyers want to buy cash flow
Greater predictability- the higher the price
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The Goal- Terminal Value
Ex: Freshest Flower Shop
$100K in revenues
$20K in free cash flow per year
Sold for 3X Annual Free Cash Flow
Sold for $60K
Ex: David’s Flowers
$100K in revenues
$20K in free cash flow
per year
Sold for $100K
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
Drivers of terminal valuation
Revenues- King- growth by segment; on and offline; retail and
wholesale
Cash flow- Emperor – return on investment; burn rate coverage
Growing client base- Queen- market share growth- future potential
Competitive advantage- Prince-
barriers to stealing your customers
Documented, audited, accurate,
timely financial statements
Highest valuations have all
these
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
Are you building wealth?
Destroying wealth?
How do you know?
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
How to Win Friends and
Influence Bankers!
Balance Sheet- Net worth
statement of the business
Personal net worth- business net worth
Relationship between what you own;
what you owe
Same for the business; relationship
between assets (own) and liabilities
(owe)
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
What’s the Value of the
Business?
Just the salvage value of the desks,
computers?
Do businesses have terminal value?
Can they be sold for more than annual
revenues?
Yes!
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Build a $Million Dollar Business to Sell
Net Worth=Owner’s Equity
Chapter 9
Three sections:
Asset- what you own
Liabilities- what you owe
Owner’s Equity= the difference
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
Net Worth=Owner’s Equity
Three sections:
Asset- what you own
Liabilities- what you owe
Owner’s Equity= the difference
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
Owner’s Equity is $9,000
Balance Sheet
Current Assets Current Liabilities
Cash $ 5,000 Accounts Payable $ 2,000
Receivables $ 2,000 Credit lines Payable $ 1,000
Fixed Assets Long-term Liabilities
Building $ 15,000 Mortgage $ 10,000
Total Assets $ 22,000 Total Liabilities $ 13,000
Owner's Equity $ 9,000
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Build a $Million Dollar Business to Sell
Net Worth=Owner’s Equity Improve Owner’s Equity by:
Increase Asset Values
Gross Margin
Cash
Sell more- receivables
Decrease Liabilities
Pay off debt
Use debt to invest in marketing
Use debt to invest in assets
Match life of asset to length of loan
The Balance Sheet
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Five Weeks to $1Million Business
Don’t find new customers!
Fix profits
Fix cash
Week 1: Fix the books
Week 2: Increase GM on products
and services
Week 3: Clean up client list
Week 4: Clean up cash cycle
Week 5: Align assets and liabilities
Three month plan
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Five Weeks to $1Million Business
Week 1: Fix the books- identify
successor- You are “HERE”
Valuation based on documented,
transferable assets
Books are accurate, timely, complete
Ensure no double counting;
Accrual basis accounting
Priorities shift from minimizing taxes, to
maximizing cash flow
New Year ideal time to re-set priorities
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Five Weeks to $1Million Business
Week 2: Increase GM on products and
services
Improve operations- streamline
offering
Direct variable costs captured so
GM is accurate
Eliminate cash drains
Eliminate problem clients
Review pricing strategy
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Five Weeks to $1Million Business
Week 3: Clean up client list
Focus on loyal, high margin clients
Don’t do business with anyone
who gives you an ulcer
Check gross margin by client
Rebalance sales and marketing
efforts
There’s a million under your
shoe!
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Five Weeks to $1Million Business
Week 4: Clean up cash cycle
Valuation based on multiples
of cash flow
Converting revenues into cash
Payment terms
Invoicing process
Aging reports
Collections process
Anything that improves your
cash position improves assets
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Five Weeks to $1Million Business
Week 4:
Cash cycle
Payment Terms
Invoicing
Aging Reports
Days Outstanding
Collections Efforts
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Five Weeks to $1Million Business
Week 5: Align assets and
liabilities
Review current ratios: current assets
to current liabilities
Review working capital (HINT: if
CA<CL you’re bankrupt!)
Know industry standards
Beat industry standards
Bidding wars are what you want!
Example: Make sure you’re not
selling used cars
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Five Weeks to $1Million Business
Week 5: Three month plan
Forecasts
Focused:
Marketing cycle
Sales cycle
Cash flow cycle
Expense management
Debt management
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Steps to Your $1Million Business You Can Sell
“Can we review that one more time?”
“Can my colleague hear you?”
“Do you have notes?”
“I know 50 people who need this”
“This was the most mind expanding experience I’ve
ever had..”
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
No qualifications needed
It doesn’t matter if you’re not an
accountant
You don’t have to have any pre-
knowledge
You can even hate accounting and it
won’t matter!
If you follow my proven system, you
will find hidden profits you never knew
where there
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
The Hidden Profit Academy 5 Week Challenge
Figures out in a few short weeks how to get you there
Roadmap that’s super easy to follow
Does in five weeks what years of struggling can’t accomplish
How would it feel to build a million dollar business you can
sell?
What would change in your life if that happened?
Yes it’s possible- if you know the roadmap
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Hidden Profit Academy 5 Week Challenge
5 Quick Courses- 5 Weeks-
Weekly calls
Week 1- 50% More Profits
Week 2- 100% More Cash Flow
Week 3- Build a Million Dollar
Business You Can Sell
Week 4- Guerrilla Marketing
Week 5- Sales Secrets
Dawn on a live call each week to
answer your questions
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Hidden Profit Academy
50% More Profits- Net Income
Statement
Dawn guiding you directly
Pitching investors? Banks?
Payment terms from
suppliers?
You need to know this stuff!
Fast! Funny!
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
The Hidden Profit Academy
100% More Cash Flow- Cash Flow Statement
How to manage payment terms up front.
Include this on an invoice so a client can’t wait to pay
you.
Insider tips to frequency and average invoice sizes so
your invoices get first priority.
The painless way to collect from customers who owe
you money.
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
The Hidden Profit Academy
Build a Million Dollar Business You Can Sell - The
Balance Sheet
How to manage short term and long term debt
When to take on debt and when to run for the hills
Mistakes you can avoid to improve your loan
acceptance rate
Simple ways to build your asset base to build owner’s
equity- the key to a million dollar valuation
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
The Hidden Profit Academy
Sales Secrets
Top 10 ways world class companies ring the cash
register faster
Never cold call again and double or triple closure
rates
How to get customers to become your free salesforce
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Value for you
Keeping Score
50% More Profit- Net Income Statement $497
100% More Cash Flow- Cash Flow Statement $497
Build a Million Dollar Business to Sell $497
Bonus #1-Guerrilla Marketing $497
Bonus #2- Sales Secrets $497
Bonus #3- Study guides $250
Bonus #4- Award-winning book AND study guide $100
Total Value: $2,835
http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing/
43
Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Grow 100% cash flow in 5 Weeks
November 15th Grow Profits 50%
December 16th Grow Cash Flow 100%
January 20th Build $1 Million Business for Sale
http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing/
44
Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Keep Best Business Book 2015 My gift to You
http://knowledgelinktv.com/hiddenprofitacademy
/courses-and-pricing/
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
4th Bonus…two one-on-one sessions with Dawn
My mission is to make sure you succeed.
Two personal consultations after you’ve taken the
course.
I’ll review your Balance Sheet and ratios
You leave with 90 day action plan.
http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing/
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Two strategy sessions with Dawn
Strategy Session w/ Dawn : $2,500 value !
Courses, Guides, Weekly Calls: $2,835
Total Value: $5,335
http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing/
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
This could be you…
Example: Auto dealer $6MM can’t pay the bills
Four businesses: sell, finance, service cars, roadside towing
Week 2, he watched first three courses, sent Dawn financials
One hour we focused on invoicing and collections
Found extra $100K cash PER MONTH
He now has a $3Million business he can sell!
http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing/
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
What does a $1Million business mean to you?
Special price for Biz 2 Credit webinar guests:
Today only $1,997
Total Value $5,335
Dawn Fotopulos personal consult
100% Money back guarantee
You must take action today.
http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing/
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
What if……
You had free access
to all the courses for 7 days?
http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing/
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
What if……
No long term commitment!
You’ll receive my personal invitation
Automatically enrolled for 7 days
http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing/
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Hidden Profit Academy
52
Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
What if……
After 7 days, a special,
exclusive offer for those who sign in.
http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing/
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
What if……
You could double cash flow in five short weeks?
You’re on the path to $1Million business in 5 short weeks?
How would your life change?
Don’t miss this once in a lifetime chance.
No one else is offering this.
http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing/
54
Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
7 Days to Change Your Life
http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing
No cost to you
55
Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016
Reach Dawn
Hidden Profit Prophet.com
Dawn Fotopulos Linkedin
Email me: [email protected]
http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing/
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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016Copyright@Biz2Credit 2016
Build $Million You Can Sell
Thank you!