Money, Time and Business Management!

Transcription

1 Money, Time and Business Management! You can have anything in this world if you want it badly enough and are willing to pay the price. With your priorities in order, press on, and never look back. May all of your dreams come true! You can, indeed, have it all! ~Mary Kay Ash

2 Money Management Successful business practices start with a smart approach to Money Management. It s extremely important to treat your Mary Kay Career as a Business. Proper money management is essential to any business. You cannot be a success if you mismanage your money. SUGGESTED ACCOUNTS FOR YOUR MARY KAY BUSINESS: 1. Checking Account Label this account: special account; business account; cosmetic account, etc. This account is used to pay business expenses. This account is used for product replacement. Deposit 100% of total sales in this account each week. Log onto go to Ordering then MKConnections. Click on Business Marketing then Checks. These checks offer designs featuring Mary Kay products. These checks could start a conversation each time you write a check plus don t forget that many potential customers handle your check from checkout to the bank. The cost of these checks are even tax deductible as a Mary Kay business expense. 2. Credit Card Used for registrations, product orders. (Pay in full when statement arrives.) DEVELOP A BUDGET FOR YOUR BUSINESS: As with any business you will have expenses. You need to be aware of income vs. expenses on a monthly basis. Always remember to deposit 100% of total sales and work your business 60/40. The idea behind working your business 60/40 is that you always have profit, you always have product, you always have savings, and you never have debt! 60% = 50% + 10% 40% = true profit 50% - Money to restock your shelf; you will reorder back exactly the product you sold. 10% - Money you set aside & save for things like enrolling customers in the Preferred Customer Program, Section 2 items, Seminar, Career Conference, etc. 40% - This is your money to do with whatever you like with after you have ordered and paid off your full store ($3,600 wholesale). The general rule is that $3,600 wholesale on your shelves is a comfortable profit level. Until you are fully stocked, more than likely you will find it necessary to reinvest 100%. Profit: We know we make 50% profit on all we sell. But by saving 10%, and only taking 40% as profit (what we refer to as true profit ) you will always have savings. Savings: A key part of money management, putting 10% of all you sell into savings means you will never NOT have money for items that help you build your business and make it easier; such as enrolling customers in the Preferred Customer Program (which saves you time, money & builds your reorder business); samples (which help you sell more product); and continuing education programs such as Career Conference and Seminar. Product: These are items for sale in a grocery store, Target or The Gap, Is the grocery store ever out of bread or milk? Is Target ever out of paper towels? Is The Gap every out of jeans? No because they always scan what they sell and that lets them know what product to reorder to restock their shelf. Working your business the same way; by reordering what you sell on a regular basis means you are always ready to fill your customers orders and therefore they will keep coming back to you over and over again. Debt: The first thing we want to eliminate. After all, you didn t come into Mary Kay to spend money, you came in to make money! Still, we know that starting any business involves some initial start-up cost. A Mary Kay business is no different. What IS different is that our start-up expense is far lower than most businesses and allows you to make far MORE money sooner thus paying off your start-up expense in full. That s a great thing since most businesses involve start -up costs that are never recouped. Page 1

3 You Were Meant To Be Debt Free! Wondering how you can start a business when you are already in debt? Here is how you can start your business & use Mary Kay to pay off ALL your debt! Sell $200 per week = $800 income for the Month Take $100 to pay loan for your MK business (Leaves $700) Use $400 to replace product sold (Leaves $300) Give $100 to yourself (Have Fun!) (Leaves $200) $200 to pay off other debt Sell $300 per week = $1200 income for the Month Take $200 to pay loan for your MK business (Leaves $1100) Use $600 to replace product sold (Leaves $500) Give $200 to yourself (Have Fun!) (Leaves $300) $300 to pay off other debt Sell $400 per week = $1600 income for the Month Take $100 to pay loan for your MK business (Leaves $1500) Use $800 to replace product sold (Leaves $700) Give $300 to yourself (Have Fun!) (Leaves $400) $400 to pay off other debt Sell $1000 per week = $4000 income for the Month Take $100 to pay loan for your MK business (Leaves $3900) Use $2000 to replace product sold (Leaves $2000) Give $300 - $1000 to yourself (Have Fun!) (Leaves $1000 to $1700) $ $1700 to pay off other debt Rapid Debt Reduction Plan: Write down all debt, numbering them 1-10 from the smallest to the largest Start paying off the smallest one first, making payments as large as you can. Make minimum payments on #2 through #10 When debt #1 is paid off, start paying big payments on #2 and continue minimum payments on #3 through #10 As in all things in LIFE Consistency is the KEY! Page 2

4 Star Consultantship Commitment + Consistency = Profit and Diamonds This is what it takes to be on profit, earning your ladder and being excited about your business because you are making money! Sapphire Quarterly = $1,800 wholesale order Monthly = $600 wholesale order Retail Sales Monthly = $1,320 Retail Sales Weekly = $330 Classes Each Week = 2 Hours per week = 6 Diamond Quarterly = $3,000 wholesale order Monthly = $1000 wholesale order Retail Sales Monthly = $2,200 Retail Sales Weekly = $550 Classes Each Week = 3 Hours per week = 10 Ruby Quarterly = $2,400 wholesale order Monthly = $800 wholesale order Retail Sales Monthly = $1,760 Retail Sales Weekly = $440 Classes Each Week = 2 Hours per week = 8 Emerald Quarterly = $3,600 wholesale order Monthly = $1,200 wholesale order Retail Sales Monthly = $2,667 Retail Sales Weekly = $667 Classes Each Week = 4 Hours per week = 12 These numbers based on class sales; they do not include reorder bonuses. Reorders become a large part of your business. With consistent effort, you can see how this business pays you very well! Work it part-time for extra income or make it a career! Mary Kay Seminar Year Quarterly Dates 1st Quarter June 16th September 15th 3rd Quarter December 16th March 15th 2nd Quarter September 16th December 15th 4th Quarter March 16th June 15th 25 Reasons to be a Star Consultant 1. Earn excellent income 13. Product on your shelf motivates you to book 2. Build inventory 3. Earn ladder pin and star for ladder 15. Builds self confidence 14. You re never broke when you have product on your shelf 4. Earn company quarterly prizes 16. First step to becoming a Red Jacket 5. Earn company recognition 17. First step to earning a Career Car 6. Pride and satisfaction in a job well done 18. Helps build protective sheild against negativity 7. Earn unit recognition 19. Shows you are a unit team player 8. Star Consultants are Great Consultants 20. Take advantage of 50% discount 9. Gives you something to crow about 21. Customers calling company 800 number will be referred to Stars first 10. Builds self-esteem 22. On-Track for company All Star awards 11. Builds happy customer base 23. Receive priority seminar recognition 12. Your customers like to do business with a successful consultant 24. Feels fantastic to be an achiever Page 3

5 Keep track of your Active Status & Earned Discount Privilege Definitions: Retail: What the Customer pays full suggested retail price. Wholesale: What the Consultant pays 50% discount Earned Discount Privilege works this way: You receive a 50% discount on any Section 1 wholesale order when you order a minimum $200 wholesale ($400 retail). You will continue to receive a 50% discount on any Section 1 product order (regardless of size) as long as you remain Active. Active Status: The month you place at least a $200 wholesale order (A1 Status) and the two following calendar months (A2 and A3 Status) you are considered Active. As long as you remain Active you receive your Earned Discount Privilege 50% discount buying power! During your Active status, if your cumulative wholesale orders during a month total at least $200 wholesale, your active status will be reset to A1. Example: ACTIVE INACTIVE JAN FEB MAR APR MAY $200 wholesale order placed 1st Month Active A1 (You can place any size order & receive 50% discount) 2nd Month Active A2 (You can place any size order & receive 50% discount) 3rd Month Active A3 Example: After your A3 active status month you will go into the below activity status: (using example month above where your A1 Status is in March). Anytime during the below activity status, you will not receive a 50% discount on wholesale orders less than $200. To regain your active status during these months, you must place at least a $200 wholesale order (this order cannot be accumulative). JAN FEB MAR APR MAY $200 wholesale order placed $100 wholesale order $100 wholesale order (You can place any size order & receive 50% discount) (You can place any size order & receive 50% discount) 1st Month Active A1 Started month as A2 Status but wholesale orders during month reached at least $200 wholesale, so status is reset to A1 Status 2nd Month Active A2 3rd Month Active A3 Monthly Ordering Deadlines: Consultants can place online orders until 9pm CST on the last day of the month. After 9pm CST all online orders must be assigned to your Director with your payment information for submission. If you a place an order after 9pm CST, please text your Director and let her know so she can submit for you. JUN JUL AUG SEP OCT through FEB I1 Status During this month, you will not receive commissions on any Team Members orders or receive MK mailings unless you place at least a $200 wholesale order. I2 Status During this month, you will not receive commissions on any Team Members orders or receive MK mailings unless you place at least a $200 wholesale order. I3 Status During this month, you will not receive commissions on any Team Members orders or receive MK mailings unless place at least a $200 wholesale order. T1 Status During this month, you will not receive MK malings and if you have team members you will lose them unless you place at least a $200 wholesale order T Status During this month you will not receive MK mailings How far away from a $200 wholesale order are you? Always reach for at least $200 wholesale cumulative in a month! So often Consultants place $150 or $180 in wholesale orders during the month; when only a few more dollars in wholesale would have made that month their first month of Active status again. Try to avoid smaller orders so your profit level/sales commissions are not ate up in shipping costs. Every wholesale order, no matter the size, from Mary Kay the shipping cost is $8.95. That is another great reason to have good inventory, so that you will only need to place one order a month to restock what you have sold during the month. Never think minimums! If you want to move up the Career Ladder, NEVER think minimums! You can do much more than minimum! Minimum in the dictionary is defined as the lowest point allowable. Always think in terms of your highest potential. Potential in the dictionary is defined as having possibility, capability and power! Page 4

6 BizBuilders Monthly Bonus Program The BizBuilders Monthly Bonus program is designed to reward you for working your business and submitting consistent wholesale orders! As you place orders you ll receive wholesale credit known as BizBuilder Bucks that you can use on your next qualifying order towards the Section 1 and Section 2 products that you want or need. The more your spend, the more you earn! You will also receive Seminar credit for the suggested retail value of the wholesale credit at the time the BizBuilder Bucks are earned, regardless if the credit is redeemed. How does this work? Place a BizBuilder qualified order (minimum $400 section 1 wholesale/$800 suggested retail) Receive BizBuilder Bucks (credit) to use on your next* BizBuilder qualifying order. The amount of BizBuilders Bucks awarded will be based on the total suggested retail amount of the order. Receive Seminar credit at the time BizBuilder Bucks are earned (the first order). It s that simple! Need more information? Log onto InTouch and review the BizBuilder information under Products. *The BizBuilders Bucks credit will be applied toward the next order of at least $400 wholesale ($800 suggested retail) as long as the order is placed while in active status. An Independent Beauty Consultant is considered active in the month a minimum $200 wholesale Section 1 product order is received and accepted by the Company and in the following two calendar months. The credit will expire upon t he expiration of the Independent Beauty Consultant s active status. The Preferred Customer Program The Preferred Customer Program helps you share on-trend products, make a lasting impression and personalize your services with your customers. Save on mailing costs and order promotional products six days early. Plus, enroll your customers, and they'll receive exclusive notices for samplers, new products and more! The benefits are endless for you and your customers! The cost is only.70 per name. Watch your for enrollment deadlines. Mary Kay also offers other mailers you can enroll your customers to receive, if you choose. For complete information from InTouch main page go to Business Tools and click on Preferred Customer Program. Page 5

7 Weekly Plan Sheet So you work another J.O.B.? Want to work your Mary Kay business part-time or full-time, but you just can t seem to get everything done? Start with becoming a Master at organizing your time. Use the Weekly Plan Sheet to organize you time! Let s look at where your time is going now: Sleep 56 hours (8 hours/night) Work 40 hours (8 hours/day) Driving 5 hours Grooming 7 hours (1 hour/day) Eating/Cooking 7 hours (1 hour/day) Cleaning/Laundry 7 hours (1 hour/day) Church Shopping/Errands 3 hours 3 hours Family/Friends/Personal 21 hours (3 hours/day) 168 Actual hours in the week so that s 19 hours remaining do you know where this time is going? As you can see, the hours above are estimated high. Some of us don t clean for 7 hours and some of us spend more time in one area and less in another. Adjust your plan to fit your schedule. Now let s look at a proven weekly plan for earning a car: 3 classes per week 6 hours 3 interviews per week 3 hours Success Meeting Office/Inventory/Paperwork Bookings/Scheduling Telephone Reorders/Misc Use the Weekly Plan Sheet to plan your week. Schedule all your time (family/church/personal/j.o.b., etc) and color code it using a different color for each activity. You will then be able to see your time that you can dedicate to work your Mary Kay business. Log onto InTouch and in the Search bar in the top right hand corner type, Weekly Plan Sheet, then click search. The link to this form will come up so you can print for the month. Weekly Accomplishment Sheet Total = 149 hours 2 hours 1.5 hours 2 hours 2 hours Total = 17.5 hours there s still time remaining! One important form of communication each week is your Weekly Accomplishment Sheet. You can submit these online at Your Mary Kay week starts on Sunday and runs through Saturday. This is how I track your success in sales and give you guidance in areas that may be challenging for you. This is also how you receive newsletter recognition for your sales. To access all the Weekly Accomplishements information from InTouch main page: Click on Business Tools Click on Weekly Accomplishments You will see links for entering your accomplishments, printing an accomplishments form and even an online guide to help you enter them. Page 6

8 Monthly Prize Report Our monthly prize report will be ed to you towards the end of each month. It will also be posted on our FB Closed Group and the link can be found on the Promotions tab of our unit site. You must complete this prize report by the 5th of the following month to ensure you receive the recognition and prizes you deserve. Page 7

9 Income Tax Preparation for the year of Date you started your Mary Kay Business: INCOME Commissions (1099-Misc from Mary Kay) Prizes, Awards, Bonuses (1099-Misc from Mary Kay) Gross Receipts of Retails Sales Sales Returns (actual returns to Mary Kay) COST OF SALES Inventory at Beginning of Year Product Purchases (wholesale cost) Sales Tax Paid on Product Purchases (retail value) Non-Collected Sales Tax (personal use items, gifts, discounts) Products Used for Personal Use (wholesale cost) Mary Kay Materials and Supplies Freight Charges on Product Orders from Mary Kay Inventory at End of Year (wholesale cost) MARY KAY BUSINESS EXPENSES Advertising Bad Debts Commissions and Fees Gifts Insurance (not health) Interest (Bank Loans, Credit Card(s) used for business) Legal/Professional Services (Tax preparation, Accountant, Attorney) Meals/Entertainment (local appointments) Meals while out of MK Event (Seminar, Career Conf, Retreats, etc) can be counted Per Diem for each day away. List # of days and state you traveled to on separate page. Office Expense (Postage, Copy Paper, etc) Rental Equipment (copy machine, etc) Telephone (Separate Line & Long Distance) & Cell, Pager, Vmail Travel (Air Fares, Tax, Rental Car, Lodging) Seminar/Career Conference/Event Registrations Fees Supplies (Wash Cloths, Q-tips, etc) Donations Internet/Website Computer Software Page 8

10 BUSINESS EXPENSES CONTINUED Special Clothing/Dry Cleaning Bank Charges (Business Account) Obsolete Products (Discarded) Uniform (Red Jacket/Directo s Suit) DEPRECIATION: LARGE PURCHASES Costs more than $100 and last more than 1 year. Computer, Office Furniture, etc. Description Date Purchased Cost $ $ $ VEHICLE EXPENSE (circle one) Own Lease Year/Make/Model Date Vehicle Placed in Service for Business Purposes Total Miles Driven During the Year Business Miles Driven During the Year Business: Parking, Tolls, Meters ACTUAL VEHICLE EXPENSES: Cost of Vehicle (circle one) New Used Date Purchased/Leased If Leased, Monthly Payment Gas Oil Changes/Repairs/Tires Insurance Page 9

11 BUSINESS USE OF HOME Total Square Footage of Home Square Footage of Area Used Regularly/Exclusively for Business Mortage Interest or Rent Paid for Year Real Estate Taxes Homeowner s Insurance Utilities (entire home) Repairs/Maintenance (entire home) Other Expenses (Lawn Care, Trash, etc) CHILD CARE Care Provider s Name Address ID # (SS or EIN) Amount Paid Care Provider s Name Address ID # (SS or EIN) Amount Paid Care Provider s Name Address ID # (SS or EIN) Amount Paid Page 10