Weig ht (Operating Expenses); and drag
(Labour Efficiency).
“You need thrust in business to get off the
ground. Thrust is what we’re able to generate
through sales,” David says. “Lift in business
comes from our margin. Too often people
make sales but with low margin and it doesn’t
work. The gross margin needs to be right.
“The weight in business is the costs (operating
expenses) and drag is the labour efficiency or
lack of productivity (inefficiency). When cost
and inefficiencies are greater than the impact
of sales and margin the business will make a
loss.
“If cost and inefficiency equal sales and
margin, you’re breaking even and if sales and
margin are greater than the impact of costs
and inefficiencies then you’ll make a profit.
The more sales and margin gets above cost and
inefficiency the profit growth is exponential.”
Unfortunately, too many franchisees are
consumed with confusion around basic issues
of financial management and the number one
equation that they usually don’t know is their
breakeven point.
David says the breakeven formula is one of the
most powerful financial management tools for
any franchisee. Not only will the breakeven
formula calculate the sales required to cover
a certain level of fixed costs it can be used to
calculate a specific range of targets in order to
release the sought profit required.
How to easily calculate, understand and set
your breakeven is a key topic covered in the
Franchisee Financial Essentials Workshop, where
participants receive practical explanations on
the crucial figures that will drive their bottom-
line profitability. Central to this is the ability
to understand a Profit and Loss Statement,
Balance Sheet and Cash Flow Analysis.
Participants will walk away with a deeper
understanding of the essentials of financial
management for their franchise and the
practical tools to immediately apply to their
own business. The workshops are very hands-
on and tailored to attendees, both single and
multi-site franchisees.
Many franchisees enter the franchise sector for
lifestyle reasons and to be in control of their
own business destiny. But ultimately, it is a
clear understanding of financial management
fundamentals that will have the biggest
influence on reaching these goals.
Through its unique financial workshops, the
Asia Pacific Centre for Franchising Excellence
aims to demystify the complexity of working
with numbers for franchisees in order to put
them in control of their finances and future
business success.FINANCE T RAINING FOR
FRANCHISEES:
Franchisee Financial essentials Workshop
27 - 28 April 2017
14 - 15 september 2017FINANCE T RAINING FOR
FRANCHISORS (MANAGEMENT):
Franchise Financial sustainability masterclass
1 - 2 & 21 - 22 June 2017
5 - 6 & 25 - 26 october 2017As part of its commitment to promoting best
practice standards throughout the franchise
sector, the Asia Pacific Centre for Franchising
Excellence is at the forefront of providing
franchise-specific financial education to
help create more successful and sustainable
franchisees and franchise systems. The Centre
offers a wide range of franchise courses,
both online and face-to-face, professional
development events, online seminars, research
reports and more. It is completely independent
and impartial, there are no vested interests or
selling of franchise systems. The focus is solely
on education and professional development in
franchising, including the foundation stones
of knowledge for new entrants to the industry.For more information contact the
Asia-Pacific Centre for Franchising
Excellence at:
07 3382 1401
http://www.franchise.edu.au“if cost and inefficiency equal sales and margin,
you’re breaking even and if sales and margin are
greater than the impact of costs and inefficiencies
then you’ll make a profit.” - david campbellDavid campbell | a vatar consulting