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Join us for a day of learning and strategizing to achieve sustainable growth in your business. Topics include finance, waste reduction, sales volume, recruitment, and more.
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Growth and sustainability November 2014 www.premiersport.org
Agenda:BELIEVE – ACHIEVE - TRUST • 9.30am - Introduction • 10am - Finance • 10.45am – coffee break • 10.50am – Reduce waste • 11.45am – Sales – increase volume • 12.30pm – lunch • 1pm – Sales cont. • 2pm – Recruitment & CPD • 3pm – coffee break • 3.10pm – Increase price • 4.10pm – Strategy / next steps
Intro - What do you want to get out of today? Objectives: • To understand what I can achieve from my business and when • Increase product & sales knowledge • To be able to build my business without diluting quality • Understand how and when to Increase price, Increase volume, reduce cost and the IMPACT this has on my business. Outcomes: • To have a strategic approach to building my business and increasing profit
Rich pictures – What is your goal? Where are you now? Where do you want to be in the future?
What could I expect? How do I get here??
Key ratios • Turnover £££ - Direct costs include wages, venue hire, commission • Gross profit – At least 50% - Overheads include office costs, literature, equipment, insurance, fees • Operating profit – 30% - Director drawings & corporation tax • Retained profit – 5% - Money carried forward
What is waste Anything your customer would not pay you to do Or Actions/activities that do not add value to your customer
The 9 wastes • Inventory – Cash, Information, WIP Inventory • Defects/Rework – Front/Back/Middle Office Errors • Waiting – Transaction Times, Waiting related to Solicitor, Council, Surveyor, Internal Risk Processing Time, Insurance • Over Processing – Duplication/Re-enter/Regulation • Motion – Meetings, Ergonomics, Unnecessary Movement • Over Produce – Over Exposure, Failed Checks • Opportunities Lost – New Product Intro. Cycle Time, gate Processes, lost customer • Inappropriate Systems + Information – Aim Not To Automate but Obliterate • Unclear Communications - Seeking Clarification, Confusion over Product/Service, Wasting Time Finding X Resulting in Duplication
Products Are you selling schools what they NEED? Do you know enough about the products that you can offer to be able to meet these needs? Draw a diagram of the Inspire Wheel
The Inspire Wheel Inspire to Nurture (foundation) Inspire to feel good (Adult) Inspire to Achieve (ks1 & 2) Inspire programmes Inspire to Engage (community) Inspire to Excel (ks3 & 4) Inspire to Compete (Ks2 – 4)
School Portal What are the main benefits of the Schools Portal? Are you using this to your advantage? Are you confident enough and competent enough when navigating the portal to really sell it and it’s benefits to schools? Any volunteers willing to demonstrate how to use the schools portal?
Are the meetings you are bookinggiving you the best chance of success? We recently carried out some data analysis of sales meetings to see: • who franchisees meet with, where and when • How many different permutations for a sales meeting • success rate of each • What is your sales strategy? Discuss your own experiences and which meetings you think are the most fruitful and why.
Statistically which type of meeting is the best? The research we carried out revealed the below statistics; • 51% of sales meetings are converted into paid work • The reason given for not converting a meeting into paid work in 36% of instances was because the school already had provision in place – what provision? • From meetings held with a teacher in the staff room the conversion to paid work was 40% • Average value of these contracts was £1,583 • From meetings held with Head Teachers in their office the conversion to paid work was 81% • Average value of these contracts was £6,661 • 70% of meetings from ‘referrals’ were converted with average value of £11,000 • Only 37% of HPA day calls were converted Are you giving enough though to WHO you are meeting?
Statistically which type of meeting is the best? Continued • One franchisee used HPA days to get their foot in the door in 73% of meetings with schools. This lead to work in 50% of the schools at a total value per annum of £14,940 • The same franchisee had a further 4 meetings with Head Teachers he had been referred to. This lead to work in 100% of the schools at a total value per annum of £42,260 • Another franchisee has had 17 meetings which has resulted in over £91k worth of work. £78k of this came from meetings with Head Teachers • Of the 17 meetings 35% resulted in no work and 66% of these meetings were with teachers What can you to do effect this?
Needs Analysis Each type of meeting is completely different and you will need to adapt your sales approach accordingly. In groups discuss how your approach might differ for the 2 scenarios below; • A meeting with the Head Teacher of a new school in their office at the end of the school day • A meeting with a PE coordinator in their classroom during lunch What information could you have found out beforehand and how might this impact your approach?
Needs Analysis - continued Identifying the NEEDS of a school is a crucial part of the sales process Their wants and needs may be two different things i.e. an after school fencing club might sound appealing, but how does this fit in with the schools requirements? This can be linked directly with the schools improvement plan, or recent OFSTED inspection Come up with a list of KEY questions you would need to ask to ensure what you are offering is meeting the needs of the school. Think about the ‘Magic Matrix’ and how you can use this How can this help with your staff retention if you get it right?
Sales Approach How do you demonstrate Premier Sports quality? HPA days have historically been the quickest and most effective route into schools. However, is that still the case? We have come up with three different routes into schools. In your groups discuss the advantages and disadvantages of each; • HPA days • Baseline Measurements • Premier Sport USP’s Which do you think is the most effective?
Reducing waste One of the key wastes from the perspective of sales is WAITING (time) i.e. from initial contact to paid work. This can be linked to the 9 wastes Danny has already discussed. We estimate that the HPA day approach takes a minimum of 49 days In your groups map out the sales process using Premier Sport USP’s
Landscape update - OFSTED • Sport premium • 22 school case study • Internal examples • How do you measure impact?
Recruitment Do you have a clear Recruitment strategy? How are you ensuring that your staff are the level required of a Premier Sport coach? Group 1 – Map out the recruitment process including timescales Group 2 – Map out the induction and training programme for AP’s What impact does it have on your staff if you get both of these right?
Expectations of staff& Retention Are you’re staff committed to what you are trying to achieve? How can you measure this? What are your AP’s long terms goals? How do you know this? List as many different ways as you can to help keep your staff happy and ensure that you are in touch with their goals/ambitions Staff Training/CPD Reward Success Appraisals Work Environment Action Planning Social Events/Team Meetings Incentives Resource Support Input Setting Challenges Equality Internal Competition
CPD What ongoing training are you doing with your staff? How are you ensuring the training you are doing is relevant and up to date? How are you measuring the impact of your training? Discuss
Assessments The most effective way to measure the impact of your training is by assessing your staff Continuous reassessment also helps measure performance over a period of time and whether there is an ongoing improvement Do you have a strategy/timetable for your assessments? From all the franchisees here today: • Only 10 assessments uploaded so far this term. • Take away one particular franchisee and that number reduces to 4 • 3 have not uploaded any Of those uploaded the average score is 83% which is outstanding delivery. Are your APs REALLY delivering to this level?
Development & structure How can you keep ambitious staff happy? How can you utilise staff to the benefit of your business? • Think of different roles within your business that staff can fulfil • Put these into a basic business infrastructure Share you findings with the rest of the group
Reducing Waste The 2 main wastes in the recruitment process are WAITING (time) and DUPLICATION How can an effective recruitment strategy help to reduce both of these? How much time are you spending on recruitment? An effective strategy would mean dedicated approximately 9 days per year in recruitment From the recruitment process that you mapped out earlier calculate how many days a year you are spending on recruitment See if there is any way you can make the process more LEAN
Increase price What is the profit margin to your company from: • Full day of PE • After school club • Holiday camp • How does this compare with your operating profit target?
Increase price - Things to consider • Staff wages • Holiday pay • Bonus related pay • Insurance • Admin • Expenses • Commission • VAT • Overheads
Pricing task – Who do you compete with? Scenario: A Company currently turns over £250k PA with a gross profit of 55%. It’s Operating profit is 25%. The income breakdown is: • £35,000 Holiday camps (150 days PA with avg 26 kids per day) • £100,000 Curric PE days (25 full days per week over 38 wks) • £115,000 EC income (76 sessions per week over 38 wks). Challenge: • Work out the prices you charged per unit i.e. day on camp, full day PE, club • Apply a price increase per product and justify reasons (PS recommendations for minimum are £15 per day on camps, £135 per day PE, £45 per session or £3.50 per child for EC clubs. • What affect does this have on your ratios? • Improve this further by increasing volume & reducing waste
Strategy – next steps How will you grow? Sales meetings – how many, when, what type Gap analysis – upselling / avg spend Reduce waste – how? Using staff to grow your business – how will you do this? Quality Assurance – How & what Pricing – how & what. Who are your competitors?
