Revenue Tracking

1. Revenue Tracking Dave & Dave CLIP Software

2. Revenue Tracking • Knowing what jobs produce the most.

5. Time and Expertise Systems Equipment Labor What are you selling?

6. Man hours – Time Production Employees Times hours available. 8 employees, 40 hours, 45 weeks (mowing season) = 14,400 hours What are your limits?

7. What is the most important thing you can learn about your customers? Q: A:

8. Arithmetic • Not very exciting, but necessary. • Total company gross sales: • $400,000 • Total production hours – 14,400 • Dollars per hour – $27.77 • Total profit - $28,000 (7%) • Business Cost=Sales-Profit = $372,000

10. Which is the better job? Q: • ABC Shopping Price - $100.00 per service Or • XYZ Shopping Price - $50.00 per service

11. ABC Shopping – 5.26 hours • XYZ Shopping – 1.39 hours

12. How much time does it take? Q: • ABC Shopping – 5.2 hours • $100.00/5.26 = $19.01 per hour • XYZ Shopping – 1.39 hours • $50/1.39 = $35.97 per hour Formula is (Price of the job)/(Time Spent) = Dollars we earned per hour A:

13. Assuming my costs to be the same per hour: • If all my jobs were like ABC, my gross sales would be: • $19.01 times 14,400 hours = $273,744 • Business cost of $372,000 • Loss of $-98,256

14. Assuming my costs to be the same per hour: • If all my jobs were like XYZ, my gross sales would be: • $35.97 times 14,400 hours = $575,568 • Or $575,568(Sales)-372,000(BC) • =$203,568 in Profit or 35%

15. How can you do revenue tracking? Q: • You have to track every dollar on every job for a significant period of time. • You have to say “No” to non-profitable jobs. A:

16. Which would you want? Q: • $-98,256 loss Or • $ 203,568.00 profit Answer?

17. How can you do revenue tracking? • You have to track travel time and make sure that it is part of the “dollar per hour” equation.

18. An Example of Job Costing in CLIPxe • Maryland Institute • George Cress

21. What happens if I raise all my Prices? • Do I make more money? • Why not?

25. Does it really work? • Company I know • Lowest dollars per man hour – $44.99 • $600,000 Gross sales • 38% profit after owner salary

26. What would you rather have? • 5% of $2,000,000 company ($100K) • Or • 38% of a $600,000 company ($223,000)

27. CLIP2Go

28. CLIP2Go • Collect the information at the job • Download into the home system when done.

29. CLIP2Go ToyorTool? • Reduces data entry time • Increases accuracy • Will it increase my profits?

30. (A money making machine) Your Business:A product

31. E-Myth • Michael Gerber - The E-Myth • Your business is your product • Work on your business not in your business • Systems are the name of the game • How long will your business work without you?

32. E-Myth • Innovation • Quantification • Orchestration

33. Insanity:Doing the same thing in the same way and expecting a different result.

34. Conclusion: Why should I care?

35. Why are you in business? • Because you like being awake at night? • Because you enjoy working with dirt? • Because you like green ankles?

36. Why are you in business? • To provide for yourself, your family and your employees.

37. You need to lead. • It is not fair to you, your family or your employees for you to operate your business at less than its capacity.

38. “Lead, Follow or get out of the way.”-Lee Iacocca