financial holographix inc. funding business through financial intelligence cost – saving…today...

Financial Holographix Inc.Funding Business through Financial Intelligence

COST – SAVING…TODAY

RMA First Friday Forum Feb. 6, 2009

Financial Holographix Inc.Funding Business through Financial Intelligence

• At Financial Holographix we’re Funding Business with FinancialIntelligence.

• One of the most intelligent things you can do to strengthen yourcompany’s plan for a hope and a future is return to Sound Business Principles.

• I am appalled at the level of lying, stealing and cheating masquerading as capitalism and normal business activity in the highest levels of government and Wall Street.

• This is not sustainable.

© 2009 Financial Holographix Inc.

In communities like Richmond where buyers and sellers, owners and employees have to look each other in the eye, I hope we can take back our economy one community at a time at the grass roots level because we are more accountable to each other.

Here are Linda’s Top 10 Secrets for closing your cash flow loopholes.


# 10 - Revenue

# 10 - Revenue

• Last month Tom Blue talked about keeping your market share• You can’t save your way out of a recession• Don’t cut effective sales methods or marketing that’s working• Recent survey by NFIB (National Federation of Small Business

Owners) said 45% are experiencing falling revenue• If your top-line shrinks, your bottom line will surely follow


# 9 - Cost of Goods Sold

# 9 - Cost of Goods Sold

• Ask vendors/suppliers for their best pricing• If they push back, make them defend a “no”• Consolidate vendors if you must for volume pricing• If you can’t win on price, ask for better terms at no penalty• Retailers if you attend shows…refuse to hold

orders with credit cards. Let them know if theywant your business they’ll have to take a check when you are ready for the shipment


# 8 - Overhead

# 8 - Overhead

• Talk w/ Lycia about her Expense Reduction program…some thinkit is too good to be true - but it’s a no brainer

• Consider using some excess capacity and get what you needwith barter. We have reputable organizations in town.

• Ask for rent concessions in writing• If part of a franchise, ask for Franchise Fee concessions• Remind them it’s not in their best interest if you fail. I had to do that in

2001 after 9/11 and saving 5% of revenue made a big differenceIf your mark-up is 100%, every $1 of cost savings protects $2 revenueCutting overhead can be a tool but there are limits…cut too deeply and you haveno business left.


# 7 - Payroll

# 7 - Payroll

• This is an easy target on your P&L because it’s large but it maynot be your best approach

• Look into some of the creative methods of reducing payroll, like a shorterwork week for all

• Get your industry ratios for employee productivity and use to motivateyour team to do what’s right for the company. It’s in everyone’s interest

Consider keeping a highly skilled group or team that works well together becauseYou will need them in the recovery.


# 6 - Inventory

# 6 - Inventory

• Retailers, this is a big one for you• Cash can get bottled up in your business here• Does your accounting system tell you what lines pay for themselves?• Do you know which lines consume cash?• Is it possible to move them through your website turning it into a real

sales vehicle and not just an electronic brochure?• Would your vendors drop-ship to your customers?• Can you find suppliers to ship just-in-time or place their goods on consignment?

(c) 2009 Financial Holographix Inc.

# 5 - Accts. Receivable

# 5 - Accts. Receivable

• B2B companies this is where cash can get bottled up in your business.• If you are not already Village Bank, stop playing bank to your clients. • You need to decide right now that one of three things is going to happen:a) Your customers are going to start paying you on time orb) They are going to pay you for the privilege of banking with you orc) They are going to run their business out of someone else’s checkbook.

You are an unsecured creditor. This introduces high levels of business risk.I’m saying you may have to fire some clients. I know it sounds counterintuitive

but really works.


# 4 - Other Wallet

# 4 - Other Wallet

• Business Owners, take an appropriate salary for your contribution to the business.• However, this is no time to subsidize pet hobbies• Putting your company logo on that race car, bass fishing boat or ski jacket

doesn’t add revenue. Your bank not fooled by this either

The future of your business depends on how much money you can leave in it.Another hidden cost of this behavior: You may forego opportunities to mitigate business risk. You think it comes from your wallet, when in reality your customerspay for the protection you need.


# 3 - Family

• Family-run businesses: Take a hard look at bottom line contribution of those extra mouths at your business table

• Hold family members to the highest standards as a positive example• Your employees are watching. Discouraged, passive-aggressive employees

will have low productivity. This siphons off real dollars but you will never find them. You’ll just have a feeling something’s wrong.

If it’s possible for a family member to get an outside job – seriously consider it.Banks appreciate diverse income streams


# 2 - Taxes

# 2 - Taxes

• This is a huge issue!• Just because your Corp. structure makes you pay taxes for the company on a personal

tax form does not justify taking all the money out of the business.• This is self-destructive behavior.• If you and your CPA think you are paying too much in taxes - and you are -

solve at the voting booth. Fire those who ok the Federal budget.

Every year you do this, you make your company less bankable. In the long term it kills good businesses. Your Bank will thank you for building some retained earnings in the company.


# 1 - Manage Like You Mean It

# 1 - Manage Like You Mean It

• This is my personal favorite.• Business is a race, a sport, a competition. There will be winners & losers. Choose winner.• Best way to move forward in these times is set your sights on a goal…decide to be Best of

Breed in your Industry or local Trade Association or Market.• Fix your chart of accounts so it gives you useful information• Keep score using GAAP (generally accepted accounting principles)…there’s

a reason they are “accepted”• If you do not understand what I just said, you are in trouble and need to get help.• Get your Industry Ratios. Compare your performance and use it to focus your

attention where it needs to be.• If you are paying professionals for advice…Take it, especially if this is your 1st recession. This is no time to wing it.

(c) 2009 Financial Holographix Inc.

WARNINGEntering

AggressiveEnforcement Area

55 Means 55

WARNINGEntering

AggressiveEnforcement Area

55 Means 55

• If you have ever taken Route 301 North to Maryland… …After you cross the Potomac River bridge…

… You’ve seen my favorite road sign

Courtesy of the MD Troopers, it says: “Warning. Entering Aggressive Enforcement Area. 55 Means 55”

Our Economy has entered an “Aggressive Enforcement Area.”Sound Business Principles are the new “55”


www.Financial-Holographix.com

It has been my pleasure to share my Top 10 secrets to closing your Cash Flow Loopholes.

financial holographix inc. funding business through financial intelligence cost – saving…today...

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