212 SECOND STREET, SUITE 204 LAKEWOOD, NEW JERSEY 08701

Lakewood Resource & Referral Center

The topics we’ll be covering

The Business Model – Why It’s Important

Expense and Cash Flow Management

Collaboration

Evaluation

Brief note before we start

All businesses , whether for-profit or non-profit

All strive to manage with efficiency and be positioned for

sustainability, growth and success.

Business is Business

The Business Model

Understanding the Business Model

WhoHow What

Expenses Revenue

The Business Model

What Are We offering

What is their mission What product or service do they Offer

Refreshing Drinks

Disaster relief assistance programs

High Quality Products for cheaper

Saving People money so they can live better

To Refresh The World

To Provide relief to victims of disaster

Who Are We offering this to

Who is our market

1. The Recipient2.The Sponsor

Two markets to understand

Two potential revenue sources

Provide programs for young people that build character, etc.

The RecipientThey charge a $15 Registration Fee

The SponsorThey provide a service to all sponsors looking to promote character building in Youth

Assessing Target Market

Psychographic information • Includes lifestyle data like hobbies, interests, opinions, etc.

Geographic information • Includes information about where the subject lives and where he or she purchases products and services. This can be as broad as the country or state in which they live, or as narrow as the county, city and neighborhood.

Behavioral information

• Includes information about how the subject uses products or services.

Benefit information

• Includes information about the perceived benefits the subject receives from products and services.

Demographic information • Includes age, gender, nationality (if necessary), etc.

How Can We Offer this

Physica

l Financial

Intellectual

Social

What resources are needed?

Manufacture

Distribute

Market

Office space

Personnel

Expenses

Program Expenses

Administrative Expenses

Fundraising Expenses

Revenue

The sponsor

The recipient of the offer

Education

Students

Educating American citizens

For the federal government

Revenue

$$

$$

Using the Mission statement as a guide for Growth

Mission – To provide love to the

animals of the universe

Love the Animals Corp

Offer - Feed the

ducks progra

m

Duck food foundation

Revenue

Offer - Feed the

Animals progra

m

Animal food foundation

By optimizing the efficiency of these five areas, an agency can position itself for substantial growth and sustainability

WhoHow What

Expenses Revenue

Cash flows & Expenses

$$$

Managing Cash Flows

Cash Revenues

Cash Disbursement

Cash Reconciliation

January February March

- Revenue from Sponsors- Revenue from services

- Rent- Utilities- Salaries

Opening Cash Balance+ Total Cash Revenues-Total Cash Disbursements = Closing cash balance

$50

$100 $200$150

$50$50

$0

$50

$50

$100

$50

$150

$50

$150

$150

$200

$50

$300

Managing Cash Flows

Projecting cash flows

Anticipated Revenue Anticipated Expenses

Risk Related to RevenueRisk Related to Expenses

Standardizing RevenueStandardizing Expenses

1

2

3

Managing Cash SurplusManaging Cash Deficit

•Pay Down Line of Credit•Invest in short term Instruments•Invest in liquid securities

•Obtain Short term loan / Line of Credit•Speed up collection of receivables•Liquidate investments•Increase fundraising efforts•Cut expenses

Rate of occurance x impact of the event = Risk

30% x 50% = 15%

Expenses

Program Expenses

Administrative Expenses

Fundraising Expenses

Managing Expenses

3 keys to Expenses Management

Taxes – understanding the exemptions

Reporting – understanding the requirements

Budgeting – understanding what is necessary

Use the cash flow

projections

Be thrifty

Use the business model to create an expenses guideline

Leveraging Resources

Leveraging Resources

Physical Social CulturalIntellectu

alFinancial

Agency Resources

•Financial Sponsors•Cash on Hand•Loans•Receivables

•Building•Websites•Computers•Desks

•Agency Image•Trust•Social Media

•Typically Includes patents•Community Insight

Collaboration

Collaboration

Cost Sharing

Making the Case for Collaboration 1+1=3

Expanded Solutions

Wider Target Market

Generates wiser decisions

Produces more durable decisions

Fosters action

Builds social capital

Fosters ownership of collective problems and resources

Promotes change

Other benefits of collaboratio

n

Collaboration

Population of City XYZ

Seniors HispanicAfrican American

White

Senior Agency

Hispanic Ageny

African American Agency

White Agency

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

PopulationExpensesRevenue

Minority Population

HispanicAfrican American

Hispanic Ageny

African American Agency

Combined Agency

0

20,000

40,000

60,000

80,000

100,000

120,000

PopulationExpensesRevenue

Independent Collaboration

Evaluation

Financial Statements

What are they?

Statement of activities

Statement of cash flows

Statement of financial

position

snapshot of the organizations business operations

snapshot of an organizations assets, liabilities and owner’s equity

snapshot of cash activity in operating, investing and financing areas

Financial Statements

Financial Statement analysis provides the quickest and most concise evaluation

Vertical Analysis

Horizontal Analysis

Provides a picture of

organizational efficiency

Provides a picture of the direction the

organization is headed in

Vertical Analysis

Provides a picture of

organizational efficiency

Revenues

Program Expenses

Gross Margin

Agency A Agency B

$100

$50

$300

50% 33%

$200

Gross Margin Percentage = (Revenue-Cost of Sales)/Revenue

Gross Margin reveals the proportion of money left over from revenues after

accounting for the cost of goods

Evaluation

Revenues

Expenses

Year 1 Year 2

$100

$50

$300

$200

Growth Rate = ( Year 2 – Year 1)/Year 1

Horizontal Analysis

Provides a picture of the direction the

organization is headed in

Growth Rate

%200

%300

Evaluation

Summing It All Up

The business Model

Collaboration

Managing the Resources

Managing the Cash Flows

Evaluation

THANK YOU!!

IDEAS &Q&A