Success = Revenue Growth + Revenue Per Head + Payroll Per Head + Employees Per Company There are 7 Business Life Cycle Stages Seed Stage – Idea Start-Up Stage – Legally formed Growth Stage – Industry penetration Established Stage – Matured business Expansion Stage – New period of growth Decline Stage – Sales and profits decline Exit Stage – Cash out
Nussbaum Center focuses on Two • Start-Up Stage • Growth Stage
Nussbaum Center Needs To: • Identify which stage each company is in • Provide adequate facilities to accommodate the Start-up and Growth stages of Entrepreneurs • Establish processes to ensure successful start-up of company • Establish processes to ensure successful growth of company
FACILITIES Basic – office, conference room and support services SERVICES Financial Book Keeping Tax Returns Capital Marketing Logo Letter Head and Business Cards Website Marketing Presentations Legal Organizational Documents Contracts Intellectual Property Information Technologies Computer Telephone Internet Access Computer repairs Networking Insurance General Liability Product liability Specific liability PROCEDURES TO ENSURE SUCCESSFUL START-UP STAGE
FACILITIES Complex – multiple office suites, updated conference room and support services SERVICES Human Resources Employee Handbook Payroll General HR Compliance Financial Procedures and Controls Banking Capital Marketing Ad Design Media Placement Public Relations Direct Mail Graphic Design Legal Contracts Intellectual Property Information Technologies Computer repairs Networking Server Facilities Insurance Workman’s Comp Health Insurance PROCEDURES TO ENSURE SUCCESSFUL GROWTH STAGE
NUSSBAUM RESULTS Success = Revenue Growth + Revenue Per Head + Payroll Per Head + Employee Per Company NBIA 2001 FYE 2002 FYE 2003 FYE 2004 FYE 2005 Number of Companies 35,000 40 37 55 54 Number of Employees 82,000 221 261 325 214 Gross Sales $7 Billion $19.8MM $16.7MM $21.7MM $24.4MM Sales Per Employee $85,366 $89,366 $64,164 $66,704 $113,919 Gross Payroll $5.1MM $6.3MM Average Salary $23,917 $29,550 Revenue Growth (15.1%) 29.5% 12.5% Average Employee Per Co. 2.34 5.53 7.05 5.91 3.96
SUCCESS EQUALS • Revenue Growth • Same company revenue growth in excess of 20%. • 30% of companies with revenues above $500,000. Currently 28% • Revenue Per Employee (RPE) • Keep RPE above $75,000 and aim for $125,000 RPE.
SUCCESS EQUALS • Payroll Per Employee • Exceed Guilford County (GC) Median Earnings Average by 20%* • Nussbaum Average Payroll $29,550 15% over GC • GC Median Earnings $26,045 • Employee’s Per Company • 4+ *Source: US Census Bureau, American Community Survey data, 2004 (annual). Guilford County information used over MSA data because MSA data was from 1999.