TACHE Conference 2004TACHE Conference 2004

““Managing for Profit”Managing for Profit”Presented by Jay Myers, CEO

Interactive Solutions, Inc.

Who is ISI?Who is ISI?

ISI at a glance…ISI at a glance…

Year Founded:Year Founded: 1996

Focus: Focus: Video Conferencing & A/V Room Integration

Company offices:Company offices: • Memphis (Headquarters)• Nashville • Knoxville (Service)• Birmingham (Service) • Jackson, MS (TBH) Annual Revenue:Annual Revenue: $ 262,000 (1996) $ 10,000,000 (2004)

Employees:Employees: 1.5 (1996) 25 (2004)

Ownership:Ownership: C Corp (one shareholder)

ISI Company ProfileISI Company Profile

Video Conferencing & Video Conferencing & Room IntegrationRoom Integration

Automated Projection Screens

Touch Panel Control System and Furniture

Interactive Data Collaboration Systems

Video Displays and Projection

Audio Reinforcement,

Control and Video Switching

Video Conferencing & Room Video Conferencing & Room IntegrationIntegration

Large Room Audio and Video Systems

Specialty Audio Visual Systems

TelemedicineTelemedicine

Shelby County Schools

University of Tennessee

nike

Representative ISI ClientsRepresentative ISI Clients

MBJ Small Business of

the year 2001

Tandberg Award of

Excellence 2003

INC 500 Fastest

Growing private company

2001

INC 500 Fastest Growing private

company 2003

2003 Kemmons Wilson

Emerging Business Award

2004 Outstanding Distance Learning

Integrator

AMX Elite Dealer Award

2004

Recent ISI AccomplishmentsRecent ISI Accomplishments

Management Defined:Management Defined:Management of a place involves making Management of a place involves making

conscious choices about what happens conscious choices about what happens to the place and taking action to make to the place and taking action to make

those things happen. those things happen.

Profit Defined:Profit Defined:All the money a business earns in a year All the money a business earns in a year

minus all the costs of running the minus all the costs of running the businessbusiness..

Managing for Profit –Managing for Profit –“Wisdom of the Ages”“Wisdom of the Ages”

• ISI is in the “for profit” business, but struggles daily with these issues.

• Many of these issues change on a daily basis.

• Commitment must be consistent and steady in looking at the impact of various decisions on business or department profitability.

• Profit decisions can be tough and are not popularity contests.

Current State at TACHE Schools Current State at TACHE Schools Relative to Budgets and Non-Relative to Budgets and Non-

Credit CoursesCredit Courses

• Institution cost recovery budget of “X” number of dollars.

• Several institutions are losing money on these programs.

• Programs are teaching large number of sections (over 450 at U of M).

• Money is generated in small dollars per student.

• Several sections being taught are long term offerings with increased competition.

How do you Increase Non- Credit How do you Increase Non- Credit Course Revenue at TACHE Course Revenue at TACHE

Institutions?Institutions?• Create classes or sessions that are interesting

to the public - Professional Development.• Seek out an academic “Star” that can be the

centerpiece of those courses.• Charge Good Money to attend these sessions

(pricing like Covey, Pryor-type seminars - $200-$1000).

• Partner with growing businesses and corporations who have a need and can spread the word.

• Create lucrative staff bonus program to provide motivation to sell corporate/volume enrollment contracts.

How do you Decrease Costs How do you Decrease Costs on TACHE Non-Credit Course on TACHE Non-Credit Course

Programs?Programs?• Carefully analyze annual budget Items on a weekly

basis.• Be prepared to cut unprofitable, long term programs

and associated personnel (i.e.: Senior Citizen Aerobics, Yoga) that is no longer competitive in today’s marketplace.

• Get creative with expenses that are necessities (Save in printing costs by putting course information on the web - also using community cable TV shows to advertise, which are sometimes FREE).

• Cut expenses that are not necessities until you are profitable.

• Adopt the motto- “Lean and mean”.

Summary of Managing for Summary of Managing for Profit at A TACHE InstitutionProfit at A TACHE Institution

• You really only have 2 choices - Increase Revenue or Cut Costs with your Non-Credit Programs.

• Treat decisions you make as strictly business - not personal.

• Make the tough choices to get rid of programs that aren’t making you money, and don’t look back.

• Focus on the fact that it should be a quality, not quantity, game when providing non-credit programs.

• Profit is not a 4 letter word! It’s what makes this country GREAT!

Questions?Questions?