Darrell J. McComber

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(No Transcript)
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Darrell J. McComber President McComber
Associates
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Cash Flow Management
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Opening Remarks

• Thanks for the Invitation
• Opening Remarks
• General Experience
• Workshop Participation

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• Problem Areas
• Contracts
• Capital Expenditures
• Inventory
• Accounts Receivable
• Bankers/Lenders
• Financial Review/Breakeven Analysis
• Choosing Your Customers

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• Contracts
• Former Client (sample)
• Purchase Order Agreement vs. Contract
• New Construction
• Retro
• Service

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• Capital Expenditures
• Vehicles
• Computers
• L/H Improvements
• Display Equipment
• Owners Tax Distribution

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• Inventory Issues
• Everyone should know how to get a respectful
  return on investment.
• What changes are taking place with the large
  percentage of custom being done
• Buying Groups
• Balance Sheet Separation
• Retail
• Back Stock
• Custom Materials
• Staged
• Vehicles

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• Accounts Receivable
• Change Orders
• Retainers on Design
• Customer Deposits
• Recognizing Income
• Service/Warranty Work
• Production/Track Housing Issues

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• Bankers/Lenders
• Short Term/Long-Term Financing
• Line of Credit
• Capital Acquisitions
• Making the Banker a Partner in the Business

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• Planning/Financial Statements
• Review every month
• Compare to Budget (Including Cash Flow)
• Do Breakeven Analysis (Including Debt Service)

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• Choosing Your Customer
• Homeowner Direct
• Homeowner Through Architect
• Homeowner Through Custom Builder or designer
• Selective Production Home Builders

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• Concluding Remarks
• Always manage your changes in inventory as they
  relate to cash, payables, and customer deposits
• When making decisions to spend money that is not
  planned for, revisit the impact on the budget
• If you are getting all the contracts you bid on
  youre probably in trouble
• It isnt a profit until you have collected all
  the funds
• Policies are only as good as your ability to
  follow them

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• Concluding Remarks
• Thank you for the opportunity to speak at your
  conference. We have addressed some important
  issues that should help you mold the evolving
  specialty retailer/custom design center.
• Please contact me if you have additional
  questions at www.mccgrp_at_aol.com.
• Thanks again,
• Darrell McComber