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Analyzing Your Business Year After Year

Gain valuable insights about analyzing your business yearly to achieve growth. Learn key tips from Mike Scarsella and Maria Markusen on business analysis, retail trends, and financial check-ups. Understand the importance of evaluating core elements, financial statements, and cash flow management. Discover how saying no, retail downsizing, and market shifts can impact your business success in the long term.

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Analyzing Your Business Year After Year

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  1. Analyzing Your Business Year After Year Mike Scarsella and Maria Markusen

  2. Please Complete Your Evaluation Everyone should have received an evaluation form upon entering the session. Please complete evaluation form and turn in to room monitor as you exit the session. Or, you can complete your evaluation in the mobile app. Locate the session in the app and tap on the clipboard icon to begin the survey. Please help us keep the Medtrade Spring Education sessions the best in the industry by completing an evaluation for every session you attend! Your feedback is very valuable to us and will be used in planning future Medtrade Spring events! Connect with us on Social Media Twitter: @MedtradeConnect Instagram: @MedtradeConnect Facebook: facebook.com/medtrade #MedtradeSpring19

  3. Introductions Mike Scarsella and Maria Markusen

  4. LESSONS LEARNED THE 20% RULE

  5. Once you are successful it’s easy to fail if you don’t pay attention. - Maria Markusen

  6. LESSONS LEARNED Analyzing your business holistically from all angles helps you grow it Analysis can help you fix your business plus grow it at the right pace in the right way Analysis allows you to respond at your own pace or with intention to change and market shifts An annual check up helps to avoid success paralysis Saying no is powerful If everything is working in your business – operationally, marketing, product mix profit is the bow on top of the box

  7. Retail Downsizing Will Accelerate, With 75,000 Stores Forced To Close By 2026 Forbes 4.10.19 The Sky is Falling…..

  8. Six Core Elements • Store design • Merchandising • Product categories and mix • Human resources/staffing • Operations • Marketing

  9. Six Core Elements • Financial Check Up Annually: • THE key to managing all 6 elements

  10. Balance Sheet • Retained Earnings • Profit? • Current Asset Make Up • Cash vs. Inventory • Inventory Levels – Turn Rate • Liabilities • Payables • Long Term & Short-Term Debt • Are you overleveraged? Not leveraged enough?

  11. Annual Review – Take the Vital Signs • Start with a review of primary financial statements • Balance Sheet • Income Statement • Cash Flow Statement

  12. Balance Sheet • Retained Earnings • Profit? • Current Asset Make Up • Cash vs. Inventory • Inventory Levels – Turn Rate • Liabilities • Payables • Long Term & Short-Term Debt • Are you overleveraged? Not leveraged enough?

  13. Balance Sheet • Position for Growth Plans • Organic? New Locations? • More Debt Needed? • Self-Financing • Break Even • New Target Level of Profitability

  14. Income Statement • Revenue Growth/Decline • COGS variance • Vendor change? • Gross Margin • Price increase needed? • Compared to PY & Quarter Run Rate • Project Ahead • New contracts, expansions

  15. Income Statement • Expense Review • Line item Variance • People Cost – largest expense • Project Ahead • New contracts, expansions • Break Even

  16. Income Statement • Marketing as % of Rev • Marketing ROI • (Sales Growth - Marketing Cost) / Marketing Cost • Identify Goal for New Year • Expansions, new products, target markets • Develop Marketing Budget / Plan

  17. Cash Flow • Operations Vs. Financing • Enough? Not Enough? • What is the Drain? • Inventory – Biggest Drain on Cash • Inventory Review • By Category with Turn Rate Analysis • Project Ahead • Expansion? Organic Growth? • Working Capital Needs? • Where is the cash coming from?

  18. Summary • Balance sheet • Current Company Health • Snapshot of Resources to Execute Growth Plan • Income Statement • Variance, growth, Break Even • Marketing Plan – Spend, ROI, Budget • Cash Flow • Operations vs. Financing • Inventory Analysis

  19. Conclusion and Questions Mike Scarsella and Maria Markusen

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