Maximizing Profits, Successfully Executing

Business Strategies

VAAS Professionals, LLC

UNDERSTAND THE BASIC FINANCIAL STATEMENTS

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UNDERSTANDING THE BASIC FINANCIAL STATEMENTS

Income Statement

Balance Sheet

Statement of Retained Earnings

Statement

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Cash Flow Statement

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HOW CAN I MAXIMIZE MY PROFITS AS A

BUSINESS OWNER

HOW CAN I MAXIMIZE MY PROFITS?

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Manage by the numbers Utilize a “real-time”

reporting system

A business owner

who is actively

working to

maximize profits

should:

Be vigilant everyday

MANAGE BY THE NUMBERS

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MANAGE BY THE NUMBERS

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Pay Yourself

Based on the results of

the company,

remember to pay

yourself.

Business Plan

Continue to evolve by

reassessing your

business plan regularly.

Your Staff

Hire the best staff who

believe in your vision

and re-evaluate your

staff accordingly.

Accountability

Hold yourself

accountable to a board

of trusted advisors.

SMALL BUSINESS FINANCIAL RATIOS

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5 SMALL BUSINESS RATIOS FOR A HEALTHY, GROWING BUSINESS

Profit Margin

Ratio

Grow profit

margin ratio

Quick Ratio Current Ratio

Return on

Investment

(ROI) Ratio

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2 MARGIN RATIOS TO ALWAYS CONSIDER

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MARGIN RATIOS TO CONSIDER

Gross Profit Margin

Money you have from

sales after subtracting

the cost of goods sold

(COGS).

Profit Margin Ratio

Earning after deducting

all expenses.

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GROSS PROFIT =

(Revenue - COGS)Revenue

PROFIT MARGIN=

(Revenue - Expenses)Revenue

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SHORT & LONG TERM RATIOS TO CONSIDER

SHORT & LONG TERM RATIOS

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Quick Ratio

Your company’s ability

to meet short-term

financial obligations.

Profit Margin Ratio

Earning after deducting

all expenses.

QUICK RATIO =

(Cash + Marketable Securities + A/R)

OR

(Current Assets - Inventory)

Current Liabilities

CURRENT RATIO=

Current AssetsCurrent Liabilities

Current Liabilities

STRATEGIES TO MAKE YOUR CASH FLOW MORE

PREDICTABLE

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PREDICT YOUR CASH FLOW

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Keep a rolling 120-day

cash flow forecast.Refine your forecast

model with time.

Maintain longer-termed

contracts/clients.Give yourself a longer

“notice” period.

Plan for external factors

that impact your sales

or expenses.

HOW TO KEEP YOUR FOOT ON FIRST BASE

WHILE STEALING SECOND?

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YOUR SUCCESSION PLAN

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Maximize your Practice

Value

Identify Due Diligence

Steps for the Transition

Learn about Practice

Valuation