Domestics

1. Planning 2 SucceedHow big does your business have to be to be as successful as you want? Alistair TaitTait Enterprise Development Limited

2. Domestics • Finish • Breaks • Lunch • Toilets • Fire alarms • Smoking • Phones off/on discrete please

3. Introductions Tell us; • Who you are • What your business does (or will do) • How big do you think your business needs to be?

4. Your objectives What do you want to achieve as a result of attending this workshop?

5. Workshop overview • Get what you want from your business • Understanding the Profit and Loss account • Setting a profit target • What are key steps to achieve your target? • What is holding you back? • Action planning

6. 1. Get what you want from your business

7. Get what you want from your business

8. Get what you want from your business

9. Get what you want from your business

10. Get what you want from your business

11. Get what you want from your business

12. Get what you want from your business

13. 2. Understanding the Profit and Loss account

14. 2010 Actual Profit and loss account £’000 Gross sales Cost of sales Gross profit Gross margin Overheads Net profit/(loss) Finance charges Profit/(loss) before tax Taxation Retained profit/(loss) 885 584 301 34% 259 42 6 36 7 29

15. 2010 Actual The jargon Profit and loss account £’000 Gross sales Cost of sales Gross profit Gross margin Overheads People costs Premises costs Sales & marketing Other overheads Depreciation Fixed asset sales Overheads Net profit/(loss) before finance charges a 885 b 584 c 301 d 34% e 132 f 71 g 17 h 18 i 21 j 0 k 259 l 42

16. 2010 Actual Profit and loss account £’000 Gross sales Cost of sales Gross profit Gross margin Overheads People costs Premises costs Sales & marketing Other overheads Depreciation Fixed asset sales Overheads Net profit/(loss) before finance charges 885 584 301 34% 132 71 17 18 21 0 259 42

17. 2010 Actual The arithmetic Profit and loss account £’000 Gross sales Cost of sales Gross profit Gross margin Overheads People costs Premises costs Sales & marketing Other overheads Depreciation Fixed asset sales Overheads Net profit/(loss) before finance charges a 885 b 584 c 301 d 34% e 132 f 71 g 17 h 18 i 21 j 0 k 259 l 42

18. 2010 Actual The arithmetic Profit and loss account £’000 Gross sales Cost of sales Gross profit Gross margin Overheads People costs Premises costs Sales & marketing Other overheads Depreciation Fixed asset sales Overheads Net profit/(loss) before finance charges a 885 b 584 c = a-b 301 d 34% e 132 f 71 g 17 h 18 i 21 j 0 k 259 l 42

19. 2010 Actual The arithmetic Profit and loss account £’000 Gross sales Cost of sales Gross profit Gross margin Overheads People costs Premises costs Sales & marketing Other overheads Depreciation Fixed asset sales Overheads Net profit/(loss) before finance charges a 885 b 584 c = a-b 301 d = c/a x 100 34% e 132 f 71 g 17 h 18 i 21 j 0 k 259 l 42

20. 2010 Actual The arithmetic Profit and loss account £’000 Gross sales Cost of sales Gross profit Gross margin Overheads People costs Premises costs Sales & marketing Other overheads Depreciation Fixed asset sales Overheads Net profit/(loss) before finance charges a 885 b 584 c = a-b 301 d = c/a x 100 34% e 132 f 71 g 17 h 18 i 21 j 0 k = e + f + g + h + i + j 259 l 42

21. 2010 Actual The arithmetic Profit and loss account £’000 Gross sales Cost of sales Gross profit Gross margin Overheads People costs Premises costs Sales & marketing Other overheads Depreciation Fixed asset sales Overheads Net profit/(loss) before finance charges a 885 b 584 c = a-b 301 d = c/a x 100 34% e 132 f 71 g 17 h 18 i 21 j 0 k = e + f + g + h + i + j 259 l = c - k 42

22. 3. Setting a profit target

23. Target Assumptions Profit and loss account £’000 Gross sales Cost of sales Gross profit Gross margin Overheads People costs Premises costs Sales & marketing Other overheads Depreciation Overheads Target earnings 154 £ 3,000 per week 54 100 Keep £65 in every £100 sale 65% 40 I person + admin help £ 1,000 per month 12 Web, PR, advertising, etc 10 6 £ 500 per month 2 70 Personal target 30

24. Now you!

25. Target Assumptions Profit and loss account £’000 Gross sales Cost of sales Gross profit Gross margin Overheads People costs Premises costs Sales & marketing Other overheads Depreciation Overheads Target earnings

26. Target Assumptions Profit and loss account £’000 Gross sales Cost of sales Gross profit Gross margin Overheads People costs Premises costs Sales & marketing Other overheads Depreciation Overheads Target earnings 154 £ 3,000 per week 54 100 Keep £65 in every £100 sale 65% 40 I person + admin help £ 1,000 per month 12 Web, PR, advertising, etc 10 6 £ 500 per month 2 70 Personal target 30

27. 4. What are the key steps to achieve your target?

28. 5. What is holding you back?

29. Workshop review

30. Workshop Review • Get what you want from your business • Understanding the Profit and Loss account • Setting a profit target • What are key steps to achieve your target? • What is holding you back? • Action planning

31. Your objectives What did you want to achieve as a result of attending this workshop?

32. 6. Action planning What three things are you going to do nowto get closer to having the business you want?

33. Action planning What three things are you going to do now to get closer to having the business you need? 1 2 3

34. Ongoing supportAlistair TaitEmail: alistair.tait@tedl.co.ukMobile: 07932 044 137

35. Me again! 17/05/12 How much funding might the business need and where to find it. 14/06/12 The importance of Gross profit vs Net profit in a business.

36. Next session 12 January 2012 Smarter with Time

37. Thank you!