How to Stack the Cards in Your Favour!

Imagine you are sitting at a high stakes poker table in Vegas and you have x-ray vision that allows you see everyone’s hand.  As Kenny Rogers would say “You would know when to hold them and when to fold them”.  Wouldn’t having this ability make you a very rich person in a short period of time? You bet it would!  What if you could “stack the deck” in your favour in your dealership! 

The insider scoop on what your competition is doing to be successful is readily available….all you have to do is ask me for it!  Lifeline Business Solutions specializes in providing you with the information you need to compete at a new level in this high stakes business we call the Recreational Products Industry…. and compete to win!

I am extremely passionate about sharing this knowledge because I know how much it can mean to your ability to significantly improve your profitability. I call it a Financial Performance Analysis and it consists of two phases.

Phase 1

We start with analyzing your last 5 years financial statements and breaking that information down into ratios and percentages.  The second part of this process is to analyze your in-house financial statements to assess the margin and volume performance in each of your product groups.

One of the advantages of this analysis is that it tells us if you are conducting your accounting in a manner that is consistent with the industry.  There is no value to this information if we are comparing apples to oranges. 

Simple things like making sure you are charging out your Service Technician wages as a cost of goods sold and not to salaries expense, are essential in the analysis.  

Confirming that rebates and registration fees are being included in the gross margin on unit sales is another common mistake. 

And typically, your accountant will usually record sales commissions as a cost of goods sold when in fact, in our industry, it is a Salary expense.

These are not accounting errors, but are essential to keeping you in the same game as your successful competitors.

When we’ve completed your analysis you will know your:

  1. Liquidity performance
  2. Equity position
  3. Inventory status
  4. Return on Investment
  5. Key expense conformance

…and with this knowledge you’ll be able to play your cards that much smarter and increase the odds of you becoming more profitable.

Phase 2

The second phase is to compare your results with those of profitable dealers – those who you envy.

If we know that top dealers are earning 3% or more net profit on gross sales and you are only earning 1%, then there is definitely room for improvement. 

If profitable dealers are spending 2% of gross sales on Interest & Bank Charges and 9% on Wages and you are spending 3% and 12% respectively, you know you have some changes to make to your business model. 

These numbers are not purely hypothetical that can’t be achieved.  These numbers come from the analysis of hundreds of your fellow dealers’ financial statements and share with you what is possible, if not essential, for you to make the profit you deserve. 

The Financial Performance Analysis will also give you important insight into the numbers that your Bank, Finance Company and Creditors are expecting from you in order to approve your credit requirements.

I can help you to “stack the deck” in your favour with this insider knowledge, so why not contact me now for a free consultation?

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Lisa Marie on Chris Brown, Lifeline Business Solutions

Lisa Marie

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"When it comes to Finance and Commercial Credit, he is one of the most knowledgeable people I know. No one I know has more in-depth experience or understands distribution finance better than Chris"

- Joe Conte, Canadian Counsel, Textron Financial Canada Limited

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