unlock the secrets of a million dollar company

Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016

Biz2Credit

Hidden Profit Prophet.com

Dawn Fotopulos- Host

BUILD $MILLION DOLLAR

BUSINESS YOU CAN SELL

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Biz2Credit Webinar Trifecta

Hidden Profit Prophet.com- Dawn

Fotopulos

50% More Profits in 5 Weeks- Net Income

Statement

100% More Cash Flow in 5 Weeks- Cash Flow

Statement

Build $Million Dollar Business You can Sell-

Balance Sheet

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Who the heck is Dawn Fotopulos?

Award-winning author Accounting for the Numberphobic; A Survival Guide for Small Business Owners AMACOM Books

Associate Professor of Business, The King’s College, NYC

Former V.P. Citibank

Serial entrepreneur, real estate investor, hedge fund partner

Passionate about #SMB survival in any economy

The “Hidden Profit Prophet”

http://hiddenprofitprophet.com/

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Build $Million Dollar Business

“A business is all about the numbers.

Most businesses could make it if the

owners knew even the very basics

of reading their financial dashboard.”

Interview with

Norm Brodsky

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The 3 big questions… Are you making a profit?

Is there enough cash to run the business?

Is the business building wealth or destroying it?

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Your financial dashboard

Three Key Gauges: Net Income

Statement

Cash Flow Statement

Balance Sheet

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Balance Sheet- Your Business Net Worth

Net Worth Equation

Assets= Own

Liabilities= Owe

Owner’s Equity= Worth

Own- Owe= Worth

Your home- outstanding mortgage=

equity or net worth

Personal and business- same

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Balance Sheet- Your Business Net Worth

Assets, Liabilities, Owner’s Equity

Asset base is the key- bigger, faster

growing is better

Liabilities need to be in healthy

ratios

Owner’s Equity is why you’re in

business

Assets- Liabilities= Owner’s

Equity

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Build a $Million Dollar Business to Sell

Start with the end in mind: $1Million

valuation- Net Worth

Who buys businesses?

Your competitors

Your loyal staff members

Your relatives

Your suppliers

Buyers are buying the future

Buyouts are rarely for cash

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Don’t wait until the heart

attack comes……

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Start with the end in mind

You are not sacrificing your life to

pay bills and die!

You need a 5 year off ramp to

maximize value

Tension between lowering yearly

taxes and terminal valuation

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Start with realistic assumptions

“Your baby is ugly”- buyer pays

cheapest price

“Your baby is beautiful”- seller asks

highest price

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Get your house in order

Business must be a going

concern,

Documented audited #’s

Transferable- clear title for

conveyance

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ABC Shark Tank is all about

valuation

What is it? How is it different/

better?

Strength of competition?

Customer base?

Revenues?

Gross margins?

Cash flow?

Growth rates?

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How an investor looks at your

business:

Multiples of cash flow

Multiples of profitability

Client base-size, loyalty, gross

margin

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Why Instagram was sold for $1Billion

Buyers are lazy; they want to buy a client base

Buyers want to buy cash flow

Greater predictability- the higher the price

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The Goal- Terminal Value

Ex: Freshest Flower Shop

$100K in revenues

$20K in free cash flow per year

Sold for 3X Annual Free Cash Flow

Sold for $60K

Ex: David’s Flowers

$100K in revenues

$20K in free cash flow

per year

Sold for $100K

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Drivers of terminal valuation

Revenues- King- growth by segment; on and offline; retail and

wholesale

Cash flow- Emperor – return on investment; burn rate coverage

Growing client base- Queen- market share growth- future potential

Competitive advantage- Prince-

barriers to stealing your customers

Documented, audited, accurate,

timely financial statements

Highest valuations have all

these

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Are you building wealth?

Destroying wealth?

How do you know?

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How to Win Friends and

Influence Bankers!

Balance Sheet- Net worth

statement of the business

Personal net worth- business net worth

Relationship between what you own;

what you owe

Same for the business; relationship

between assets (own) and liabilities

(owe)

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What’s the Value of the

Business?

Just the salvage value of the desks,

computers?

Do businesses have terminal value?

Can they be sold for more than annual

revenues?

Yes!

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Net Worth=Owner’s Equity

Chapter 9

Three sections:

Asset- what you own

Liabilities- what you owe

Owner’s Equity= the difference

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Net Worth=Owner’s Equity

Three sections:

Asset- what you own

Liabilities- what you owe

Owner’s Equity= the difference

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Owner’s Equity is $9,000

Balance Sheet

Current Assets Current Liabilities

Cash $ 5,000 Accounts Payable $ 2,000

Receivables $ 2,000 Credit lines Payable $ 1,000

Fixed Assets Long-term Liabilities

Building $ 15,000 Mortgage $ 10,000

Total Assets $ 22,000 Total Liabilities $ 13,000

Owner's Equity $ 9,000

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Net Worth=Owner’s Equity Improve Owner’s Equity by:

Increase Asset Values

Gross Margin

Cash

Sell more- receivables

Decrease Liabilities

Pay off debt

Use debt to invest in marketing

Use debt to invest in assets

Match life of asset to length of loan

The Balance Sheet

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Five Weeks to $1Million Business

Don’t find new customers!

Fix profits

Fix cash

Week 1: Fix the books

Week 2: Increase GM on products

and services

Week 3: Clean up client list

Week 4: Clean up cash cycle

Week 5: Align assets and liabilities

Three month plan

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Week 1: Fix the books- identify

successor- You are “HERE”

Valuation based on documented,

transferable assets

Books are accurate, timely, complete

Ensure no double counting;

Accrual basis accounting

Priorities shift from minimizing taxes, to

maximizing cash flow

New Year ideal time to re-set priorities

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Week 2: Increase GM on products and

services

Improve operations- streamline

offering

Direct variable costs captured so

GM is accurate

Eliminate cash drains

Eliminate problem clients

Review pricing strategy

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Week 3: Clean up client list

Focus on loyal, high margin clients

Don’t do business with anyone

who gives you an ulcer

Check gross margin by client

Rebalance sales and marketing

efforts

There’s a million under your

shoe!

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Week 4: Clean up cash cycle

Valuation based on multiples

of cash flow

Converting revenues into cash

Payment terms

Invoicing process

Aging reports

Collections process

Anything that improves your

cash position improves assets

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Week 4:

Cash cycle

Payment Terms

Invoicing

Aging Reports

Days Outstanding

Collections Efforts

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Week 5: Align assets and

liabilities

Review current ratios: current assets

to current liabilities

Review working capital (HINT: if

CA<CL you’re bankrupt!)

Know industry standards

Beat industry standards

Bidding wars are what you want!

Example: Make sure you’re not

selling used cars

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Week 5: Three month plan

Forecasts

Focused:

Marketing cycle

Sales cycle

Cash flow cycle

Expense management

Debt management

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Steps to Your $1Million Business You Can Sell

“Can we review that one more time?”

“Can my colleague hear you?”

“Do you have notes?”

“I know 50 people who need this”

“This was the most mind expanding experience I’ve

ever had..”

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No qualifications needed

It doesn’t matter if you’re not an

accountant

You don’t have to have any pre-

knowledge

You can even hate accounting and it

won’t matter!

If you follow my proven system, you

will find hidden profits you never knew

where there

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The Hidden Profit Academy 5 Week Challenge

Figures out in a few short weeks how to get you there

Roadmap that’s super easy to follow

Does in five weeks what years of struggling can’t accomplish

How would it feel to build a million dollar business you can

sell?

What would change in your life if that happened?

Yes it’s possible- if you know the roadmap

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Hidden Profit Academy 5 Week Challenge

5 Quick Courses- 5 Weeks-

Weekly calls

Week 1- 50% More Profits

Week 2- 100% More Cash Flow

Week 3- Build a Million Dollar

Business You Can Sell

Week 4- Guerrilla Marketing

Week 5- Sales Secrets

Dawn on a live call each week to

answer your questions

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Hidden Profit Academy

50% More Profits- Net Income

Statement

Dawn guiding you directly

Pitching investors? Banks?

Payment terms from

suppliers?

You need to know this stuff!

Fast! Funny!

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The Hidden Profit Academy

100% More Cash Flow- Cash Flow Statement

How to manage payment terms up front.

Include this on an invoice so a client can’t wait to pay

you.

Insider tips to frequency and average invoice sizes so

your invoices get first priority.

The painless way to collect from customers who owe

you money.

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Build a Million Dollar Business You Can Sell - The

Balance Sheet

How to manage short term and long term debt

When to take on debt and when to run for the hills

Mistakes you can avoid to improve your loan

acceptance rate

Simple ways to build your asset base to build owner’s

equity- the key to a million dollar valuation

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Sales Secrets

Top 10 ways world class companies ring the cash

register faster

Never cold call again and double or triple closure

rates

How to get customers to become your free salesforce

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Value for you

Keeping Score

50% More Profit- Net Income Statement $497

100% More Cash Flow- Cash Flow Statement $497

Build a Million Dollar Business to Sell $497

Bonus #1-Guerrilla Marketing $497

Bonus #2- Sales Secrets $497

Bonus #3- Study guides $250

Bonus #4- Award-winning book AND study guide $100

Total Value: $2,835

http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing/


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Grow 100% cash flow in 5 Weeks

November 15th Grow Profits 50%

December 16th Grow Cash Flow 100%

January 20th Build $1 Million Business for Sale



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Keep Best Business Book 2015 My gift to You

http://knowledgelinktv.com/hiddenprofitacademy

/courses-and-pricing/

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4th Bonus…two one-on-one sessions with Dawn

My mission is to make sure you succeed.

Two personal consultations after you’ve taken the

course.

I’ll review your Balance Sheet and ratios

You leave with 90 day action plan.



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Two strategy sessions with Dawn

Strategy Session w/ Dawn : $2,500 value !

Courses, Guides, Weekly Calls: $2,835

Total Value: $5,335



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This could be you…

Example: Auto dealer $6MM can’t pay the bills

Four businesses: sell, finance, service cars, roadside towing

Week 2, he watched first three courses, sent Dawn financials

One hour we focused on invoicing and collections

Found extra $100K cash PER MONTH

He now has a $3Million business he can sell!


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What does a $1Million business mean to you?

Special price for Biz 2 Credit webinar guests:

Today only $1,997

Total Value $5,335

Dawn Fotopulos personal consult

100% Money back guarantee

You must take action today.


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What if……

You had free access

to all the courses for 7 days?


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What if……

No long term commitment!

You’ll receive my personal invitation

Automatically enrolled for 7 days


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Hidden Profit Academy

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What if……

After 7 days, a special,

exclusive offer for those who sign in.


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What if……

You could double cash flow in five short weeks?

You’re on the path to $1Million business in 5 short weeks?

How would your life change?

Don’t miss this once in a lifetime chance.

No one else is offering this.


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7 Days to Change Your Life

http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing

No cost to you

http://knowledgelinktv.com/hiddenprofitacademy/courses-and-pricing

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Reach Dawn

Hidden Profit Prophet.com

Dawn Fotopulos Linkedin

Email me: [email protected]


mailto:[email protected]

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Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2016Copyright@Biz2Credit 2016

Build $Million You Can Sell

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unlock the secrets of a million dollar company

Small Business & Entrepreneurship