"I thoroughly enjoy the information I hear at the meetings, but the best benefit I have received from CEBI is the networking opportunities. I have placed two of the men I met there on my Board of Advisors and have struck up some great relationships for both executive advice and potential business with several others."
Chuck Biehn
President
American Cutting Edge, Inc.
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Chief Executive Briefing #11:A
Dollar Saved is More than a Dollar Earned
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Chief
Executive Briefing # 11
A
Dollar Saved is More than a Dollar Earned
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Reduction
in Expenses
DOLLARS
SAVED
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$1
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$1,000
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$10,000
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$35,000
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$70,000.00
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$105,000.00
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75%
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$1.33
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$1,333.33
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$13,333.33
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$46,666.67
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$93,333.33
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$140,000.00
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70%
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$1.43
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$1,428.57
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$14,285.71
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$50,000.00
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$100,000.00
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$150,000.00
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65%
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$1.54
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$1,538.46
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$15,384.62
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$53,846.15
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$107,692.31
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$161,538.46
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60%
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$1.67
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$1,666.67
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$16,666.67
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$58,333.33
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$116,666.67
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$175,000.00
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55%
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$1.82
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$1,818.18
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$18,181.82
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$63,636.36
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$127,272.73
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$190,909.09
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50%
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$2.00
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$2,000.00
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$20,000.00
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$70,000.00
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$140,000.00
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$210,000.00
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45%
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$2.22
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$2,222.22
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$22,222.22
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$77,777.78
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$155,555.56
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$233,333.33
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40%
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$2.50
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$2,500.00
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$25,000.00
|
$87,500.00
|
$175,000.00
|
$262,500.00
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35%
|
$2.86
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$2,857.14
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$28,571.43
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$100,000.00
|
$200,000.00
|
$300,000.00
|
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30%
|
$3.33
|
$3,333.33
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$33,333.33
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$116,666.67
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$233,333.33
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$350,000.00
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25%
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$4.00
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$4,000.00
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$40,000.00
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$140,000.00
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$280,000.00
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$420,000.00
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20%
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$5.00
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$5,000.00
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$50,000.00
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$175,000.00
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$350,000.00
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$525,000.00
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15%
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$6.67
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$6,666.67
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$66,666.67
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$233,333.33
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$466,666.67
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$700,000.00
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10%
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$10.00
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$10,000.00
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$100,000.00
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$350,000.00
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$700,000.00
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$1,050,000.00
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8%
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$12.50
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$12,500.00
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$125,000.00
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$437,500.00
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$875,000.00
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$1,312,500.00
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6%
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$16.67
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$16,666.67
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$166,666.67
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$583,333.33
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$1,166,666.67
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$1,750,000.00
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4%
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$25.00
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$25,000.00
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$250,000.00
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$875,000.00
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$1,750,000.00
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$2,625,000.00
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2%
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$50.00
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$50,000.00
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$500,000.00
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$1,750,000.00
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$3,500,000.00
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$5,250,000.00
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Every dollar you save in your
business drops directly to your bottom line.
The above table indicates the
amount you would have to increase your gross sales to equal certain
reductions in your expenses, depending on your gross margin.
For example, if your gross margin
is 20% and you were able to reduce your expenses by $1,000, you would need
to increase your revenues by $5,000 to have the same impact on your bottom
line.
If your gross margin is 8% and you
eliminated an employee that cost you $35,000, you would need to increase
your revenues by $437,500 to have the same impact on your bottom line.
What do you think you could afford to pay someone
either part time or full time, to focus solely on reducing your expenses?
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