1. What I Didnt Learn atAccounting SchoolPresented by: Chris Hooper@ChrisHooper87 @CirilloHooper #1DayMBA

2. @ChrisHooper87 @CirilloHooper #1DayMBA DisclaimerThis presentation is intended to provide general information only and has been prepared without taking into account any particular persons objectives, financial situation or needs. You should, before acting on this information, consider the appropriateness of this information having regard to your personal objectives, financial situation or needs. It is recommended that you obtain tax and financial advice from a qualified professional before making any taxation, investment or insurance decision. 3. @ChrisHooper87 @CirilloHooper #1DayMBA Topics1. The Importance of Cashflow2. How to Increase Profitability3. Personal Finance Hack 4. @ChrisHooper87 @CirilloHooper #1DayMBA The Importance of Cashflow: Soldiers Analogy 5. @ChrisHooper87 @CirilloHooper #1DayMBA The Importance of Cashflow: Profit and Loss Sucks Prepared on an accrual basis Doesnt tell the real story of whats going on It tells you what happened, not whats happening 6. @ChrisHooper87 @CirilloHooper #1DayMBA The Importance of Cashflow: Illustration 7. @ChrisHooper87 @CirilloHooper #1DayMBA How to Improve Cashflow: Tips Pour the water faster: Get paid quicker (deposits, direct debit etc) Get more sales Constrict the flow: Cutting costs Creditor stretching Budget and cashflow management 8. @ChrisHooper87 @CirilloHooper #1DayMBA How to Improve Profitability: Hypothetical Imagine you own a used car dealer: Your turnover $500,000 per annum Your costs are $450,000 per annum Your profit is $50,000 per annum (10%) I want you to improve profit to $200,000 9. @ChrisHooper87 @CirilloHooper #1DayMBA How to improve profitability: The NumbersNumber of Enquiries100 Enquiriesx Conversion % x 50%x Average Sale x $10,000= Gross Revenue= $500,000- Costs- $450,000= Profit = $50,000 10. @ChrisHooper87 @CirilloHooper #1DayMBA How to Improve Profitability: Just add 10%100 Enquiries110 Enquiriesx 50% Conversion x 55% Conversionx $10,000 Sale Value x $11,000 Sale Value= $500,000 Revenue = $665,500 Revenue- $450,000 Costs - $405,000 Costs= $50,000 Profit = $260,500 Profit 11. @ChrisHooper87 @CirilloHooper #1DayMBAHow to Improve ProfitabilityIdeas Enquiries Marketing Advertising Conversion Sales training Sales scripts Sales Value Bump your prices up / Stop discounting Add more value Costs Drive efficiency Zero Based budget review 12. @ChrisHooper87 @CirilloHooper #1DayMBA Personal Finance Hacks: Parkinsons Law Cyril Parkinson - Economist 1955 Work expands so as to fill the time available for its completion. Parkinsons Second Law Expenditures rise to meet income" Its human nature to spend exactly what one earns As such, as income rises so do living expenses Drive a wedge between your income andexpenditure 13. @ChrisHooper87 @CirilloHooper #1DayMBA Personal Finance Hacks: Eliminate the need for discipline Dont feel bad Saving is a rare quality possessed by a small few Automate the process Eliminate the discretion Make it illegal to access Superannuation First Home Saver Accounts Make it difficult to access Property Password splitting Debit blocking 14. @ChrisHooper87 @CirilloHooper #1DayMBA Personal Finance Hacks: Start now, not later Compound interest is one of the most powerfulforces of the face of the earth! $10,0005% 10% 15%20$90,000$729,000 $5,388,00030$55,000$281,000 $1,332,00040$34,000$108,000 $329,00050$21,000$42,000 $81,00060$13,000$16,000 $20,000 15. @ChrisHooper87 @CirilloHooper #1DayMBA Thats all folks Thanks for listening Follow me on Twitter @ChrisHooper87 Like us on facebook.com/CirilloHooper Subscribe to our newsletter cirillohooper.com/blog