Mid Level Tenured Stagers

Strategic Decision Making for Sustainable and Optimized Growth

July 27, 2018 2:00 pm - 3:20 pm

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Ryan Marsh

The goal of this presentation is to outline how to create value for your company through the appropriate strategic decision making processes and long term planning. There is a heavy focus on economic theory, evaluating company financial statements, looking at how to budget for a net income at any size, and how to grow your business in a sustainable fashion to avoid crippling your cash flow and depleting the value of your company. I believe that your financial statements tell you a story that should influence the way you operate your business, the way you grow your business, and how to appropriately charge for your staging. Additionally, it is important to adjust your business model to accommodate the real estate market in the area in which you are operating to take advantage of economic theory. All of the information provided is not directly applicable across the industry; additional evaluation of current practices should be done prior to making strategic decisions. Value is also created through additional facets of the industry not outlined in this presentation.

  • Basics of economic theory and how these concepts apply to the industry.
    1. Supply and demand (How to price your product)
      1. Discounts and premiums
      2. Diminishing returns
      3. Opportunity Cost
    2. Economic theory of utility (Influences the demand for your product)
    3. How these concepts should influence your business model
  • Bottom up budgeting starting from net income.
    1. Importance of budgeting (having a plan)
      1. Worry about unknowns
      2. Knowledge is power
      3. Ability to do statistical analysis
    2. Fixed Expenses
    3. Variable Expenses
    4. Sensitivity analysis
      1. Sales Initiatives (Supply and demand)
        1. Price per staging
          1. Product influences price
          2. Market conditions influence price (demand)
          3. Utility correlation
        2. Number of stagings to be complete
        3. Extended rental rate
    5. Break even analysis
      1. How do you calculate this?
      2. What does break even tell you about the health of your business?
        1. Price and demand concerns
        2. Inefficiencies
  • Economy of scale.
    1. Buying Power
      1. Working with vendors you have strategic partnerships with
    2. Dilutes fixed expenses
      1. Warehouse lease
      2. Cost of goods
    3. Reduction of break even
      1. Increases growth rate and cash flow
  • Leveraging your finances
    1. Ability for product to pay for itself before you have to pay for it.
    2. Growth through cash flow
    3. Line of Credit
    4. Equipment Leases
      1. Monthly perpetuity
      2. Increased buying power and ability to leverage cash flow elsewhere
    5. Which option works better for your business?