How To Run Your Business To Be Profitable? Advancing Your Success

Transcription

1 How To Run Your Business To Be Profitable? Advancing Your Success

2 Corporate Profile 2 Company Anchor Business Consultancy, LLC Managing Director Description Kevin A. Howell, MBA Company s mission is to help small and mid-sized businesses increase and sustain their profitability through better financial and operational management. Core Services *Financial Statement Analyses and Projections *Capital Raising and Packaging Services *Business/Management Training and *Mergers and Acquisition Advisory * Industry Expertise Worked with Fortune 500 clients in industries such as manufacturing and consumer products, construction, information technology, software development and health care, both domestically and internationally. Contact Information Phone: (347) khowell@anchorsllc.com

3 Objectives For Workshop 3 This session will provide participants with the tools to set-up and manage the following operational areas: Procurement Human resources (both managerial and line staff) Capital Infrastructure & Technology Legal Support Business will not maximize its profitability without the right operational systems in place!

4 Pulling the Puzzle Together 4 A strong operational infrastructure: Supports the growth of revenues Makes happier customers Ensures strong employee selection and management Reduces turnover and helps with the motivation of employees Enhances the management and tracking of business performance Assists with the management and mitigation of risks

5 #1 Procurement - Overview 5 The procurement process is critical to sales fulfillment and includes: Product Development or Service Determination Explore/develop prototype Execute surveys and product analysis File licenses, trademarks and patents Determine the type of product packaging Define basis for delivery services or products Supplier Identification Review list of suppliers Negotiate prices and contracts Set-up delivery expectations Manage supplier relationships (payments, complaints, etc.) Product/Services Delivery Determine where you fit in the supply chain (wholesale, retail, manufacturer, etc) Identify whether the business is going to be online or at a brick and mortar location Hire and train right sales representatives and focus on customer service

6 #1 Procurement Location & Lease Considerations 6 The procurement process is critical to sales fulfillment and includes: Location Concerns Determine size and type space to drive efficiency Estimate all potential costs associated with renting, buying and retrofitting location Understand costs for utilities, taxes, and other expenses Determine whether location is accessible by public transportation and possess adequate parking, highways, airports, etc. Understand business zoning laws Provide drawings or photos of location, floor plan in the appendix of your business plan Understand traffic flow and competition in area, especially for retail business Lease Concerns Determine length of lease and renewal options Identify what is included in rent - (insurance, property taxes, and maintenance costs (called a gross lease); Determine conditions for returning security deposits Identify size of space and landlords basis of measurement (what is the loss factor associated with common areas?) Understand who will pay for renovations, improvements and modifications and who will own them after the lease ends Identify guidelines for signage Determine if lease can be assigned or subleased to another tenant Research the basis for lease termination and penalties associated with early termination

7 #2 Human Resources 7 Understand the Law Set-up your Hiring Process Develop the Appropriate Employee Management Systems The strength and potential impact of well trained and knowledgeable workforce should never be taken for granted.

8 #2 Human Resources Impact to Plan 8 Narrative Identify core personnel and job description Develop organizational chart Description of special labor policies Identify expectations of employees and training Financial Statements Income Statements Revenues Good employees should help to drive growth in revenue Costs Salaries and wages Training costs Supplies and stationeries Balance Sheets Computers and furniture & equipment Accrued expenses

9 #2 Human Resources Understand the Law 9 Anti Discrimination Laws: Civil Rights act of 1964: Prohibits employers from discriminating against employees and job applicants based on race, religion, sex, color or national origin. Includes anti-sexual harassment provisions. (For businesses with 15+ employees) Affirmative Action: Employers must actively recruit and promote qualified veterans, minorities, women and individuals with disabilities. (For businesses with government contracts) Americans with Disability: Employers to hire and promote qualified individuals with disabilities. (For businesses with 15+ employees) Age Discrimination in Employment: Prohibits employers from age discrimination when hiring, retaining and promoting employees who are 40 years of age or older. (20+ employees.) Immigration: Request identification from everyone you hire and have each employee complete a form I-9, Employee Eligibility Verification before hiring. This protects your right to hire legal immigrants and prohibits the hiring of illegal immigrants.

10 #2 Human Resources Understand the Law 10 Visit: Compliance Areas to Consider: Minimum wages - ( Overtime Pay - ( Hours of Employment - ( Other Considerations: Provide each employee who worked for your business a completed IRS Form W2 Annual Wage and Tax Statement Collect withholding Taxes Permit employees to take up to 12 weeks of unpaid leave for each year related to birth of child, adoption of child, care for an immediate family, serious health condition. (For businesses with 50+ employees.) Rehire an employee if that person was inducted into or voluntarily enlisted in the Source: armed forces of the United States How to Start a Business in New York City Entrepreneur Press

11 #2 Human Resources Understand the Law 11 Other Considerations: All employers are required to: Pay Social Security taxes to the government to provide for old age, survivor and disability benefits Pay Medicare (hospital insurance) To obtain workers compensation insurance. This type of insurance pays the benefits for covered employees for job-related illnesses, injuries and deaths Obtain disability insurance If you employ one or more employees for 30 days in a calendar year COBRA - Any employee who was covered under employer-provided group health insurance for at least 3 months and whose coverage is terminated due to separation from employment, and provided that the employee is not otherwise covered by another group policy, be covered by the employer-provided group for up to 18 months. (For businesses with 20+ employees.) Source: How to Start a Business in New York City Entrepreneur Press

12 #2 Human Resources Hiring Process 12 Job description resource: Job title Expected reports Keys responsibilities Qualifications & Terms of employment Special job requirements Determine Staffing Needs Develop Job Description Set-up & Manage Interview Process How many? What roles? Full-time or part-time? Budget? Select the Best Fit Never ask questions about age, sex, marital status, national origin, religion, disabilities, pregnancy, non job related memberships/affiliations, race, color or sexual orientation

13 #2 Human Resources Develop & Train 13 Determine costs for on boarding infrastructure Determine and develop types of trainings to be provided to employees and estimate potential costs Determine costs to maintain employees Salaries and wages Perks Equipment & supplies Define Roles & Responsibilities Identify Promotion and Job Satisfaction Opportunities Don t overlook Compensation

14 #3 Capital Infrastructure & Technology 14 Determine cost developing website Itemize all fixed assets required and include costs in start-up cost analysis Determine whether you will lease or buy equipment Website and Social Media? Equipment & Fixtures? Don t overlook Compensation

15 # 4 Legal Support Legal Considerations 15 Businesses needs to operate in the context of federal, state and profession related legal frameworks. Key areas of focus should include: Licenses & Permits Incorporation expectations Patents and copyrights Employees and labor laws

16 # 4 Legal Support Business Structure 16 What s the Most Appropriate Legal Structure? Source: Table adopted from NYC Solutions

17 17 Questions and Answers