Home Roundtable Monthly Challenges January 2019 Business Challenge Contest Reply To: January 2019 Business Challenge Contest

  • James Flawith

    Member
    February 10, 2019 at 8:13 am

    Top 3 Goals for 2019:

    1. Diversify customer base so that no single customer accounts for more than 50% of gross revenue
      • This is a big deal for us since historically one customer (BC Hydro) has accounted for about 95% of gross revenue annually
    2. Achieve maximum profit sharing for employees by hitting our high target of 18% profit margin
      • It will be difficult but it is possible – our F18 profit margin was 14.7% and I spent cash at the end of the fiscal year to reduce taxes by loading up to equip the 3rd bucket truck we were going to rent in Q1 of F19 a bit early
    3. Save 20% of gross of all invoices paid (aka the “Precision Savings Plan”)
      • Target #1 = cover $100K working capital loan from BDC as an emergency fund
      • Target #2 = hold 2 months operating capital ($100K in savings account, separate from BDC $ emergency fund)
      • $200K of emergency money

    Long Term Goal: Operate all equipment, debt-free with 2 months operating capital untouched in the bank and secure financing to purchase Precision Tree Operations Hub to build equity and diversify income via commercial real estate.