16. 16
David Mustin, MBA
• Partner, Advisory – Cleveland
• 25+ years of professional management consulting
• Business and IT growth and transformation, and post-
merger integration
• Experience in manufacturing, distribution, high tech,
health care and life sciences among other industries
Introductions
17. 17
Agenda
• Introduction to Recessions
• Addressing Internal Challenges
• Preparation and Seven Key
Best Practices
• Benefiting from Recession
Planning
Image by Andreas Riedelmeier from Pixabay
18. 18
Market Update: Bears & Bulls
2003 – 2007
Bull Market
Dow Jones hit a
high of 14,165
2007 – 2009
Bear Market
12-year low of
6,547 on
3/9/09,
54% loss in 17
months
2009-2019
Bull Market
Remains volatile losing 20% during
summers of 2010 and 2011
2/1/13 closes above 14,000 for
first time since October 2007
All-time high 27,359 7/15/19
Chart source: Yahoo Finance
19. 19
The Recession of 2008
"Arguably the financial shocks of 2008 were bigger than those of 1929.
The outcome was not as disastrous because the policy responses were
quite different.“
- Jeffrey Shafer, a former Federal Reserve and Treasury official.
- Ben Bernanke, Former Head of the Federal Reserve
20. 20
Market Update Today:
Earnings & Taxes
https://tradingeconomics.com/united-states/corporate-profits
https://tradingeconomics.com/united-states/corporate-tax-rate
Corporate earnings are up Corporate tax rates are down
22. 22
What is a Recession?
A recession is a
significant decline in
economic activity
spread across the
economy, lasting more
than a few months.
http://www.nber.org/cycles/jan08bcdc_memo.html
Note: NBER does not define a recession as a minimum of six months.
• Real GDP
• Real Income
• Employment
• Industrial Production
• Wholesale-Retail Sales
24. 24
Market Update:
Bond Yield Curves - 2019
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/pages/TextView.aspx?data=yieldYear&year=2019
YieldPercent
0
0.5
1
1.5
2
2.5
3
3.5
1/2/2019 2/2/2019 3/2/2019 4/2/2019 5/2/2019 6/2/2019 7/2/2019 8/2/2019 9/2/2019 10/2/2019
2 Yr 10 Yr 30 Yr
25. 25
Market Update:
Dow Jones Industrial Average – 2019
https://finance.yahoo.com/chart/
DJIA is up 16.4% YTD, Nasdaq is up 21.4% and S&P 500 is up 24.6%
30. 30
Manufacturing Production YoY:
2009 - 2019
Manufacturing production in the United States averaged a 3.79 percent increase
YoY from 1920 until 2019
https://tradingeconomics.com/united-states/manufacturing-production
31. 31
What Are Your Internal Challenges
to Preparing for the Recession?
Images courtesy of www.pixabay.com
32. 32
Preparing for a Recession
Plan
Cash Flow
Capital
ClientsStaff
Sales &
Marketing
Dashboard
Prepare
33. 33
1. Be Prepared: Have a Plan
• Develop/Refine a Plan
• Develop Different
Scenarios and Diversify
the Strategy
• Identify New Markets,
Client and Products not
Affected by a Recession
35. 35
3. Manage Capital
• Reduce Inventory
• Limit Capital Purchases
• Reduce Debt
• Expand Lines of Credit
• Sale/Leaseback of Capital
Assets
36. 36
4. Attend to Clients
• Tier clients to A, B, C, D
levels
• Prioritize A & B Clients
• Address Clients Seeking
Lowest Cost/Favorable
Terms
• Seek New Clients
• Diversify Clients
37. 37
5. Attend to Staff
• Push Back New Hires
• Address Low Performers
• Retain Valuable Staff
• Staff to the Bottom of the
Production Curve
• Utilize Temps for Demand
Fluctuations
• Outsource Non-Strategic
Centers
• Train, Train, Train
38. 38
6. Focus on Sales and Marketing
• Continue Marketing
• Understand Your Value
• Train/Retrain Sales Staff
• Accelerate Time to Close
• Increase Marketing to Key
Customers
• Refine/Differentiate
Messaging
39. 39
7. Utilize a Dashboard and
Track Early Warning Indicators
• Monitor, Monitor, Monitor
• Create Visibility to Core
Business Drivers
• Include Early Warning
Indicators
• Focus on Key Areas of
Business
40. 40
Why Now?
“The time to repair the roof is when the sun is shining.”
- John F Kennedy
41. 41
Managing to a Recession …
Preparing for and running your business in a recession is really
just executing sound business practices!
Preparation
42. 42
Summary
• Engage and Align the Team
• Reduce Costs
• Build a Strong Relationship with
your Executive Team
• Engage and Follow the Seven
Key Approaches
• Be Proactive
45. Search Engine Optimization
What is Search Engine Optimization?
• SEO is the process of optimizing your website’s presence
in search results.
• SEO refers to non-paid/organic
search results.
• Search results can include articles,
images, videos, map results and more.
46. Search Engine Optimization
How Can SEO Benefit Me?
• Increased visibility for search
terms relevant to your business
can increase opportunities for
online leads.
• Attract “free” traffic to your website
via organic search.
• Better understanding of how your
customers look for your
products/services.
48. Search Engine Optimization
What SEO Capabilities Are Available?
• Keyword research is the process of determining which search terms your
audience is most likely to use when seeking out your products and
services.
• On-page optimization is the process of ensuring that your existing
website content is well formatted to appeal to search engine crawlers (e.g.,
page titles, meta data, etc).
• Content creation involves things like the creation of relevant articles on
your website, infographics, videos, podcasts and more.
• Link building is proactively seeking out third party website links into your
website such as industry associations, via directories and press coverage.
49. Search Engine Optimization
Three Questions to Ask Yourself About SEO
1. Do you appear in search results for your
company’s products/services?
2. Are you appearing above or below
your competitors?
3. What content can you create for your
website that would be a valuable
resource to your customers/prospects?
51. Google Ads
What Are Google Ads?
• Google Ads encompasses AdWords
(Search), Google Display Network
(Banner ads) and YouTube (Video ads).
• Ads run on either a pay-per-click or pay-
per-impression basis.
• Budgets are set on a daily basis and can
be adjusted or canceled at any time.
55. Google Ads
How Can Google Ads Benefit Me?
• Ads allow you to reach your customers and
prospects during Google web searches, while they
are browsing third party website or before, during
and after viewing YouTube video content.
• ROI of Google Ads campaigns can be tracked when
visitors to your site convert via a website form or
even via a tracked call.
56. Google Ads
What Google Ads Capabilities Are Available?
• AdWords allows you to run text ads on search results
pages for targeted keywords and phrase.
• Display ads let you run banner ads of various sizes to
audiences who are visiting sites that fit your targeting
criteria.
• Video ads allow placement of short video
“commercials” before, during and after targeted
YouTube video content.
57. Google Ads
Three Questions to Ask Yourself About Google Ads
1. What percentage of my website
visitors become leads/customers?
2. What is an average click to my
website “worth”?
3. How does this compare to an
estimated cost-per-click in Google Ads?
59. What Are Social Media Ads?
• Social ads refer to paid promotional space on
networks such as Facebook, Instagram, Twitter
and LinkedIn.
• Ads run on either a pay-per-click or pay-per-
impression basis.
• Budgets are set on a daily basis and can be
adjusted or canceled at any time.
Social Media Ads
62. Social Media Ads
How Can Social Media Ads Benefit Me?
• Detailed targeting allows you to reach users by
location, age, gender, job title, interests and
more.
• The ads allow users to “share” the promotional
content with their followers, potentially
enhancing the reach of your ad campaign.
• When compared to search ads, social ads are
typically a lower cost-per-click due to the high
volume of potential users to be reached.
63. Social Media Ads
What Social Media Ad Capabilities Are Available?
• Depending on the social media platform, a wide
variety of ad types are available:
Text
Static images
Videos
Rotating carousels
• Ability to track ROI through site visitors who
convert via a website form or even a
tracked call.
64. Social Media Ads
Three Questions To Ask Yourself About
Social Media Ads
1. What social media platforms are my
customers most likely to use?
2. How am I currently interacting with
customers on that platform?
3. What type of social media content has
the most value to my target audience?
66. On-Site Conversion
What Are On-Site Conversions?
• On-site conversions refer to opportunities to
collect leads via your website.
• Conversion opportunities can include:
Forms
Online chat
Premium content
Newsletter signup
Special offers
70. On-Site Conversion
How Can On-Site Conversions Benefit Me?
• More easily assign ROI to your digital marketing efforts.
• Streamline communications for both your customers and
your staff.
• On-site conversions can be entered directly into many
CRM systems, bypassing manual data entry.
71. On-Site Conversion
What On-Site Conversion Opportunities Are Available?
• Website forms can function to collect basic contact requests,
newsletter signups, quote requests, reservations and more.
• Online chat can be a convenient way to serve customers
while also collecting a lead’s contact details.
• The ability to offer something of value to your customer (e.g.,
promotional coupons, discounts, special content) in exchange
for their contact details.
72. On-Site Conversion
Three Questions To Ask Yourself About
On-Site Conversions
1. Am I collecting customer/prospect data
from my website?
2. If so, am I tracking how these
customers found me and what
happened to them after they submitted
their web request?
3. What can I offer on my website that
my customers would find valuable to
generate more leads?
74. Contact Us
Jonathan Ebenstein
Partner, Skoda Minotti
(440) 605-7231
jebenstein@skodaminotti.com
CPE Code:
DMV
Bob Goricki
Director of Digital Marketing,
Skoda Minotti
(440) 605-7234
bgoricki@skodaminotti.com
75. The Next Big Thing
Value Acceleration/Exit Planning
Mike Trabert
CPA, CVA, CMAP, CEPA, CM&AA
Partner, Skoda Minotti
77. Mike Trabert
CPA, CVA, CMAP, CEPA, CM&AA
• Mike leads Skoda Minotti’s Value Acceleration/Exit Planning Group, and
is a leader in the firm’s Transaction Advisory Services Group
• He is a Certified Valuation Analyst, Chartered Merger and Acquisition
Professional, a Certified Exit Planning Advisor and a Certified Merger
and Acquisition Advisor
• Mike graduated from Kent State University in three years where he
received his Bachelor of Business Administration degree in accounting
• He is chair of the Leading Edge Alliance (LEA) Certified Exit Planner
Advisor Group
• He is President of the Northeast Ohio Chapter of the Exit Planning
Institute
• Mike was recognized in the National Register’s Who’s Who in
Executives and Professionals
• He has been recognized as the 2017 Exit Planner of the Year by the
Exit Planning Institute
• He is chair of the LEA Family Business Special Interest Group
• Mike was awarded the LEA 2018 Initiative Champion
• He is a frequent speaker nationally and internationally
• Mike has attended a regular-season Major League Baseball game in
over 60 venues
Skoda Minotti
440-449-6800
mtrabert@skodaminotti.com
79. Historical Transition
Success Rates
• 70-80% of businesses put on the market
don’t sell
• Only 30% of all family-owned businesses
survive into the second generation
• 12 months after selling, 75% of business
owners surveyed “profoundly regretted”
the decision
81. • Within seven years, ALL
baby boomers will be over
age 60
• Own 63% of the 6M private
businesses in U.S.
• 80-90% of their wealth is tied
up in their businesses
• EPI research confirms: 48%
in the next five years; 76%
plan to transition over the
next 10 years
The Age
Wave
4,500,000
Businesses
$10 Trillion
in Wealth
82. Market Dynamics
• What impact do you think this will have on the
market when these business transitions begin
to flow?
Multiples are likely to fall
Only the best businesses
have the option to sell
83. What Can You Do?
• Build a system that positions the business for a
successful transition in good times or bad
• Identify what they already have
• Initiate steps to mitigate risk
• Build value
• Position the business so that
they can unlock the wealth
90. Why Focus on Value?
This business is 70% of
the owner’s net worth
assuming he/she
can monetize
91. Three Keys to a
Successful Transition
“Three Legs of the Stool”
1. Maximizing the value of
the business
2. Ensuring you are personally and
financially prepared to maximize
net proceeds
3. Ensuring you have a plan for what
you are going to do next
Integrate exit strategy
business practices into the
daily operations of the
business
92. Value Acceleration
A proven process that focuses on value growth and aligning
business, personal and financial goals
• Integrates the three legs into one Master Plan
• Is grounded in ACTION
• Promotes use of teams in an engaging process
• Creates a road map to success
• Provides owner key deliverables and metrics
• Creates a Leap in Value
93. Additional Benefits
• Focusing on value makes the timing of the exit irrelevant – always “ready”
• Very predictable results
• Breaks big strategic programs into 90-day chunks (sprints!)
• Connects daily activities to value growth
• Acts as a driver of organizational behavior
• Mitigates risk
• Gets employees and management thinking more like owners – what are the
financial impacts of their performance?
• Ensures owner and family wealth are at the center of the plan
• Can be used as an intergenerational and employee development,
transition and measurement tool
94. Core Concepts
• 5 Stages of Value Maturity
• 4Cs
• 3 Legs of the Stool
• Relentless Execution
97. Business Value = Simple Math
Simple Math
MULTIPLE
CASH
SALE
S
X =
You control You control some
Predictable Cash Flow
Clean Balance Sheet
Size Matters!
Private Capital Market Conditions
Terms/Exit Option
Intangibles (Value Factors)
98. What is Intellectual Capital?
“…the sum of everything everybody knows in
a company that gives it a competitive edge.”
– Thomas A. Stewart
The Wealth of Knowledge
99. Tangible Versus Intangible Assets
Traditional
accounting
systems are set up
to provided regular
feedback on
tangible assets…
…yet, your
intangible assets
are the direct
drivers of business
attractiveness.
Can you
measure the
value of your
intangible
assets?
102. Common Sense Scoring
1 532 4 6
STRONGWEAK AVERAGE
CAN INTELLECTUAL CAPITAL BE MEASURED?
103. Scoring Exercise
1 532 4 6
STRONGWEAK AVERAGE
1 532 4 6
1 532 4 6
1 532 4 6
Human
Customer
Structural
Social
104. Focusing and
Sustaining Improvements
“We have this list to build value. And we know what value
enhancement is worth…so now what?”
“5 Business and 5 personal actions that
we can complete in the next 90 days,
every 90 days.”
Keep Score!
105. Myth vs. Reality
About Exit Planning
• Myth: Exit planning is something owners do when they are ready to leave the
business
• Reality: Exit Planning is Business Strategy. It’s about building a management
system to keep the organization focused on building value that “one day” can be
extracted, harvested and monetized from the business
VALUE is all about transferability
Focusing on VALUE produces all other positive outcomes
106. Exit Planning Institute
• Teaches Value Acceleration Methodology
• Certified Exit Planner Advisor (CEPA) – Value Advisor
• Approximately 1,000 CEPAs in 15 countries
• Approximately 30 chapters
107. Communicating With the Owner
Advisors:
Left Brain
Owners:
Right Brain
Info processing
Process info in a linear
manner
Process info holistically
Project engagement Identify important details See end result with clarity
Perception Analytical Creative
Workflow Move in a sequential order
Move randomly from task
to task
Problem solving Use logic to solve problems
Use intuition to solve
problems
108. Summary
• It takes time to get ready; starting is difficult
• Readiness correlates to value
• This is a once-in-a-lifetime event
109.
110. Contact Me
Mike Trabert
CPA, CVA, CMAP, CEPA, CM&AA
Partner, Skoda Minotti
(440) 449-6800
mtrabert@skodaminotti.com
CPE Code: NBT
111. Life Insurance 360
A Client-Centered Comprehensive Approach To
Life Insurance Policy Design and Management
The Right Strategy…
Right Policy…
Right Design…
Right Management
Terry Bork
Aurum Wealth Management
112. Paradigm Shift…
Life Insurance as an Asset
• Term Insurance Can Be an Expense
• Permanent Insurance Is an Asset
Death Benefit Design Is a Deferred Asset
Cash Value Design Is a Current Asset
113. Unique Financial Instrument
As “A Lifelong Asset” permanent life
insurance has a unique combination of
characteristics unavailable in any other
financial instrument or cash
accumulation strategy.
114. Tax Characteristics
Inherent to Life Insurance
• Tax-Deferred Cash Value Growth (tax-free if held for life)
• Tax-Free Access to policy cash value during lifetime
through a combination of withdrawals and loans
• Tax-free Death Benefit (Death Benefit may be accessed
during lifetime for terminal or chronic illness)
115. It Starts With…….
WHAT’S IT FOR?
Policy death benefits and/or cash value can be
the funding asset for multiple planning strategies
designed to help individuals achieve their
lifetime and legacy goals, and businesses of all
types and sizes to grow and prosper.
117. Business Planning Objectives
Executive Compensation
and Benefits
• Business Owner
Retirement Income
• Executive Retention
Protection and Exit Planning
• Key Person Protection
• Buy/Sell Funding
118. Policy Design
• There is more to making good permanent life
insurance decisions than shopping for price,
or picking a product based upon numbers
from a sales illustration.
• Today’s products are complex and have great
flexibility to address each
individual’s/company’s unique circumstances.
Each policy is custom engineered to
individual specifications.
119. Cash Value or Death Benefit?
• Based on “What’s it For” the first
determination is whether to custom build the
policy for its cash value or its death benefit
- Accumulation life focuses on
maximizing policy cash value as a living
benefit.
- Death benefit design focuses on
maximizing the Internal Rate of Return
(IRR) at life expectancy
120. Accumulation Life…
“Tax-Favored Asset Container”
• Major corporations and financial institutions
have benefited from this concept for decades.
• Defined contribution funding – determine the
level and duration of the premium first
• Minimum death benefit design to minimize
expenses
121. Accumulation Life…
“Tax-Favored Asset Container”
• Insurers price different products for different
markets...Retail, Institutional, Experience-rated
• Cash value growth can be based on fixed
account, variable sub-accounts, hedging
strategy
• Tax-free access to policy cash value during
lifetime
With proper design and policy selection policy,
expenses can be less than fees and taxes on a
taxable alternative
122. Death Benefit Design
• Defined benefit funding strategy
• Premium amount and duration generally not fixed and not
guaranteed
• Major determinants of premium are policy charges and cash
value crediting rate
• Function of cash value is to support the death benefit
• Secondary guarantees can be included
• Death benefit may be accelerated to pay for terminal or
chronic illness
The goal is to pay minimum premium,
consistent with risk tolerance, to maintain
death benefit for life
123. Design Considerations
• Safety……choosing financially strong carriers
• Certainty…..conservative assumptions
• Flexibility……ability to make modifications
• Equity…..proper method to determine cash
value growth
• Premium…..proper level and duration
124. Policy Selection
Policy selection takes into account both the
intent of the policy and design considerations
• Whole Life
• Universal Life
• Variable Universal Life
• Indexed Universal Life
125. Product Pricing
Insurers price different products for different
markets determined by the risk characteristics
associated with the pool of policyholders for
which the policy is designed.
• Retail
• Institutional
• Experience-Rated
Policy selection considers policy costs
and construction of those costs when
determining optimal use
126. Policy Underwriting
Underwriting Advocacy is the art of packaging, clarifying
and negotiating to obtain best possible outcome
• Full Underwriting
• Express Underwriting
• Group Underwriting
• Simplified issue
• Guarantee issue
127. Life Insurance Portfolio Management…
Bridges Expectations With Results
• Multiple policies, each custom engineered to
individual specifications, designed and managed
over time to meet specific financial goals
• Policies can be repurposed, recalibrated or
replaced (1035 exchange) as products evolve
and/or needs and circumstances change.
• If required a policy can be surrendered to the
insurance company for its cash value, or sold
in the open market (life settlement) for an
amount greater than the cash value and less
than the death benefit.
128. 1035 Exchange
A 1035 exchange is a provision in the tax code
which allows a policyholder to transfer funds from
a life insurance, endowment or annuity to a new
policy without having to pay taxes.
129. Life Settlements
A life settlement is an option for individuals or
businesses that desire funds for other needs
General criteria to consider:
• Individuals age 70 and older
• Life expectancy of 14 years or less
• A recent decline in health
• All policy types $250,000 and greater
• Owner can be an Individual, Trust, Corporation,
Charity or other entity
130. Summary
Permanent Life Insurance is a valuable asset
and should be viewed and managed as such
It starts with “What’s it For?”
The Right Strategy
The Right Design
The Right Policy
The Right Management
131. Contact Me
Terry Bork
CLU, ChFC
President, Aurum Insurance
(440) 605-7230
tbork@auruminsurance.com
CPE Code: LAA
133. How to Stay Out of Court
“Lawyers are like nuclear
warheads. They have theirs, so I
have mine. Once you use them,
they @#$% up everything.”
Lawrence Garfield – Other People’s Money
168. CoverMySix: Internet And It
• Strong internal, written IT policy
• Security/licensing audit from a
reputable company
169. CoverMySix: Internet And It
• Strong internal, written IT policy
• Security/licensing audit from
a reputable company
• Periodic training
170. CoverMySix: Internet And It
• Strong internal, written IT policy
• Security/licensing audit from
a reputable company
• Periodic training
• Address online defamation
172. Saving On Legal Fees
Realities of the Legal Marketplace
• There are tons of lawyers out there
• You have more power than you
think you do
173. Saving On Legal Fees
Realities of the Legal Marketplace
• Location, location, location
• Big firms bill more per hour than
small firms
• Specialized lawyers bill more
than general practitioners
174. Saving On Legal Fees
• Negotiate fees, caps, flat fees,
contingencies; get budgets;
always counteroffer
• Shop around
• Use an RFP
182. FINDING GOLD:
IDENTIFYING AREAS TO IMMEDIATELY SAVE
AND REDUCE UTILITY EXPENSES
Presented by:
Roger S. Zona
CEO & Founder
TPI Efficiency Consulting
183. Ohio House Bill 6
Includes charges to cover subsidies for two FirstEnergy nuclear
plants and coal production facilities and a “rollback” of energy
efficiency and clean energy standards.
187. 1 of 45 components in FE Ohio
Ohio House Bill 6
Includes charges to cover subsidies for two FirstEnergy nuclear
plants and coal production facilities and a “rollback” of energy
efficiency and clean energy standards.
Roger S. Zona
CEO & Founder
TPI Efficiency Consulting
FOR AGAINST
China Tariffs
International Politics
Commercial Activity Tax Rider
Universal Service - Total KWH
CEI Delta Revenue Recovery
Deferred Fuel Cost Recovery
Deferred Generation Cost Recovery Rider
Economic Development Rider-
Standard Charge Provision
Phase-In Recovery
Government Directives Recovery Rider
Ohio Renewable Resources Rider
Non Market Based Services
Delta Revenue Recovery Rider
Advanced Metering Infrastructure
Rider/Modern Grid
Delivery Capital Recovery
Capacity Charges
Reactive Demand Charges
Distribution Modernization Riders
Distribution Uncollectible Riders
Line Extension Cost Recovery Riders
Demand Side Management
and Energy Efficiency Riders
PIPP Uncollectible
State kWh Tax Riders
188. IT’S CONFUSING OUT THERE.
Roger S. Zona
CEO & Founder
TPI Efficiency Consulting
189. IT’S CONFUSING OUT THERE. WE GET IT.
Roger S. Zona
CEO & Founder
TPI Efficiency Consulting
190. SO, HOW CAN YOU MAKE SENSE OF IT ALL?
Roger S. Zona
CEO & Founder
TPI Efficiency Consulting
191. BY GETTING YOUR DUCKS IN A ROW
Roger S. Zona
CEO & Founder
TPI Efficiency Consulting
1: CONSIDER YOUR ENTIRE ENERGY BILL1: CONSIDER YOUR ENTIRE ENERGY BILL
2: KNOW THE MARKET PRESSURES
1: CONSIDER YOUR ENTIRE ENERGY BILL
2: KNOW THE MARKET PRESSURES
3: ADDRESS COST AVOIDANCE & EFFICIENCY
193. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Regulated Portion 41% (aka: distribution/transmission)
194. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Regulated Portion 41% (aka: distribution/transmission)
Deregulated Portion 59% (aka: retail/supply/generation)
Source: Current U.S. Energy Information Administration Annual Energy Outlook
195. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Regulated Portion | Overview
• In Ohio’s FirstEnergy territory alone,
over 45 separate components
• Fees
• Taxes
• Riders
• Rate Class
• Special
Arrangements
∞ Constant Change
196. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 1: Cold Storage Facility
197. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 1: Cold Storage Facility
• Pennsylvania Sales Tax Exemption (Electricity)
Pennsylvania sales tax (regulations vary by state and use type)
198. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 1: Cold Storage Facility
• Pennsylvania Sales Tax Exemption (Electricity)
Pennsylvania sales tax (regulations vary by state and use type)
1. Process detailed invoices
Standard Bill Detailed Bill
199. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 1: Cold Storage Facility
• Pennsylvania Sales Tax Exemption (Electricity)
Pennsylvania sales tax (regulations vary by state and use type)
1. Process detailed invoices
2. Identify exempt load percentage from detailed bill analysis
200. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 1: Cold Storage Facility
• Pennsylvania Sales Tax Recovery (Electricity)
201. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 1: Cold Storage Facility
• Pennsylvania Sales Tax Recovery (Electricity)
≈3 years recoverable
202. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 1: Cold Storage Facility
$75,722:“Lump-sum” Pennsylvania Sales Tax Recovered
203. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 1: Cold Storage Facility
$75,722:“Lump-sum” Pennsylvania Sales Tax Recovered
+$23,537: Annual Pennsylvania Sales Tax Avoided
204. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 1: Cold Storage Facility
$75,722:“Lump-sum” Pennsylvania Sales Tax Recovered
+$23,537: Annual Pennsylvania Sales Tax Avoided
$99,259: Total Client Savings Year-1
205. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 1: Cold Storage Facility
$75,722:“Lump-sum” Pennsylvania Sales Tax Recovered
+$23,537: Annual Pennsylvania Sales Tax Avoided
$99,259: Total Client Savings Year-1
+$23,537 Annual Sales Tax Exemption (go-forward)
207. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 2: Manufacturer
• Rider: D38 (Energy Efficiency) Opt-out:
208. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 2: Manufacturer
• Rider: D38 (Energy Efficiency) Opt-out:
Qualifying customers may opt out of Energy Efficiency
and Peak Demand Reduction programs offered
209. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 2: Manufacturer
• Rider: Ohio State kWh Tax Reduction: (Self Assessing Purchaser)
Tax payed directly to state rather than through utility
210. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 2: Manufacturer
$135,817: Annual D38 Opt-out Savings
211. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 2: Manufacturer
$135,817: Annual D38 Opt-out Savings
+$68,117: Annual Ohio State kWh Tax Avoided
212. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 2: Manufacturer
$135,817: Annual D38 Opt-out Savings
+$68,117: Annual Ohio State kWh Tax Avoided
$203,934: Total Ohio Annual Savings
213. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 2: Manufacturer
$135,817: Annual D38 Opt-out Savings
+$68,117: Annual Ohio State kWh Tax Avoided
$203,934: Total Ohio Annual Savings
$696,000: “Lump-sum” Pennsylvania Sales Tax Recovered
214. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 2: Manufacturer
$135,817: Annual D38 Opt-out Savings
+$68,117: Annual Ohio State kWh Tax Avoided
$203,934: Total Ohio Annual Savings
$696,000: “Lump-sum” Pennsylvania Sales Tax Recovered
+$232,000: Annual Pennsylvania Sales Tax Avoided
215. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Case Study 2: Manufacturer
$135,817: Annual D38 Opt-out Savings
+$68,117: Annual Ohio State kWh Tax Avoided
$203,934: Total Ohio Annual Savings
$696,000: “Lump-sum” Pennsylvania Sales Tax Recovered
+$232,000: Annual Pennsylvania Sales Tax Avoided
$928,000: Total Pennsylvania Annual Savings
$1,131,934 Total Client Savings Year One!
216. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Deregulated Portion: 59% (aka: retail/supply/generation)
• Large portion of total bill
• Infinite purchasing strategies and products
available on a globally traded market
• Easy switch:
not a physical
conversion
• Complex offers,
contracts, and
relationships
219. 1: CONSIDER YOUR ENTIRE ENERGY BILL
Is deregulation working?
$31.7 Billion in Estimate Commercial Savings
Achieved by Switching 2011–2017
220. 2: KNOW THE MARKET PRESSURES
• Ohio House Bill 6
• China Tariffs
• LNG Exports
• Renewables
• Capacity
• Coal
• Black Swans
221. 2: KNOW THE MARKET PRESSURES
• Ohio House Bill 6
• China Tariffs
• LNG Exports
• Renewables
• Capacity
• Coal
• Black Swans
A black swan is an unpredictable event that is beyond what is normally expected of a
situation and has potentially severe consequences. Black swan events are
characterized by their extreme rarity, their severe impact, and the practice of
explaining widespread failure to predict them as simple folly in hindsight.
222. THE SWANS
Unpredicted legislation change of component cost spikes electricity costs in New
York for 12 months (to finance carbon impact infrastructure)
228. CHECKING IN…
Careful consideration of
all Fees, Taxes, Riders, Rate Class…
Contracts negotiated
based on market conditions
Address cost avoidance & efficiency
229. 3: ADDRESS COST AVOIDANCE & EFFICIENCY
• Wind
• Solar
• HVAC
• BAS
• BMS
Capital expense? Yes.
But supply is no longer in conflict with affordability
and on-bill financing options are hard to beat.
“The cheapest kWh,
is the one you don’t use.”
230. LEADS TO A CALM OUTLOOK FOR THE FUTURE
QUESTIONS?
PROACTIVELY ADDRESSING THESE ISSUES…
CPE Code:
RUE
Notas do Editor
Ken
Examination of the new rolls of the CFO and other executive leaders in strategy, growth and leading the organization
Shifting from administrative leader (Finance, HR, IT, procurement, other) to a strategic orientation
Focus
Skills
Communications
Projects
Implementing a portfolio approach to growth and types of initiatives driven by the CFO
Key threats to the role of the CFO and the finance organization
What’s next for the CFO
Ken
https://money.cnn.com/2014/08/27/news/economy/ben-bernanke-great-depression/index.html
Depression vs. Recession: "My guess is he meant it was the most complex and widespread deterioration of financial markets," said Mark Gertler, a New York University economist who has written several papers with Bernanke. "I don't think he had in mind that the Great Depression was milder than the Great Recession."
That much is clear. During the Great Depression, unemployment spiked to 25%, and the country's output plummeted by nearly 50%.
At its peak, the unemployment rate never climbed above 10% during the Great Recession. That was the highest rate since the early 1980s, but nearly as bad as the 1930s.
"It would be outrageous to say it was a bigger crisis overall, but you could make the case that the shocks were as great," said Shafer.
Complete collapse in confidence: That seems to be Bernanke's point. In his 2009 interview, Bernanke noted that 12 of the most important financial institutions in the U.S. "were at risk of failure within a period of a week or two." Countless overseas banking giants also needed rescues to prevent bankruptcy.
Following the collapse of Lehman Brothers, there was a complete collapse in market confidence. Even companies like General Electric (GE) were struggling to find the funds needed to keep their businesses operating.
"The solvency of the whole banking system was in question. This was a crisis that went beyond anything that our academic Fed chair had ever dreamed of," said David Jones, a former Fed economist and author of Understanding Central Banking.
Ken
National Bureau of Economic Research
koh-east.info
Leading indicators[edit]
Leading indicators are indicators that usually, but not always, change before the economy as a whole changes.[1] They are therefore useful as short-term predictors of the economy. Stock market returns are a leading indicator: the stock market usually begins to decline before the economy as a whole declines and usually begins to improve before the general economy begins to recover from a slump. Other leading indicators include the index of consumer expectations, building permits, and the money supply. The Conference Board publishes a composite Leading Economic Index consisting of ten indicators designed to predict activity in the U. S. economy six to nine months in future.
Components of the Conference Board's Leading Economic Indicators Index
Average weekly hours (manufacturing) — Adjustments to the working hours of existing employees are usually made in advance of new hires or layoffs, which is why the measure of average weekly hours is a leading indicator for changes in unemployment.
Average weekly jobless claims for unemployment insurance — The CB reverses the value of this component from positive to negative because a positive reading indicates a loss in jobs. The initial jobless-claims data is more sensitive to business conditions than other measures of unemployment, and as such leads the monthly unemployment data released by the U.S. Department of Labor.
Manufacturers' new orders for consumer goods/materials — This component is considered a leading indicator because increases in new orders for consumer goods and materials usually mean positive changes in actual production. The new orders decrease inventory and contribute to unfilled orders, a precursor to future revenue.
Vendor performance (slower deliveries diffusion index) — This component measures the time it takes to deliver orders to industrial companies. Vendor performance leads the business cycle because an increase in delivery time can indicate rising demand for manufacturing supplies. Vendor performance is measured by a monthly survey from the National Association of Purchasing Managers (NAPM). This diffusion index measures one-half of the respondents reporting no change and all respondents reporting slower deliveries.
Manufacturers' new orders for non-defense capital goods — As stated above, new orders lead the business cycle because increases in orders usually mean positive changes in actual production and perhaps rising demand. This measure is the producer's counterpart of new orders for consumer goods/materials component (#3).
Building permits for new private housing units.
Stock prices of 500 common stocks — Equity market returns are considered a leading indicator because changes in stock prices reflect investors' expectations for the future of the economy and interest rates.
Corporate equities as leading indicator with respect to GDP.
Money Supply (M2) — The money supply measures demand deposits, traveler's checks, savings deposits, currency, money market accounts, and small-denomination time deposits. Here, M2 is adjusted for inflation by means of the deflator published by the federal government in the GDP report. Bank lending, a factor contributing to account deposits, usually declines when inflation increases faster than the money supply, which can make economic expansion more difficult. Thus, an increase in demand deposits will indicate expectations that inflation will rise, resulting in a decrease in bank lending and an increase in savings.
Interest rate spread (10-year Treasury vs. Federal Funds target) — The interest rate spread is often referred to as the yield curve and implies the expected direction of short-, medium- and long-term interest rates. Changes in the yield curve have been the most accurate predictors of downturns in the economic cycle. This is particularly true when the curve becomes inverted, that is, when the longer-term returns are expected to be less than the short rates.
Index of consumer expectations — This is the only component of the leading indicators that is based solely on expectations. This component leads the business cycle because consumer expectations can indicate future consumer spending or tightening. The data for this component comes from the University of Michigan's Survey Research Center, and is released once a month.
Gives you a better understanding because By doing the keyword research you will learn how people search vs the Jargon you use internally.
This is an example of what keyword search will look like.
Search tools that would be helpful – SEMRush as a paid tool ($99/month) . Google offers a free keyword research planner tool, but it doesn’t track your rankings for you in the same way that SemRushcan.
What type of results come up. For instance show map results, show paid listings, images, gives you a feel for what your search result page looks like. People also ask = “?”
Text Ads vs. Pix. Picture all have pricing. This is an online shopping ad. The text ads are just to links on website
:15 second ads can be non skippable. 30 seconds are skippable after certain peiord ofseconds
Can have a click to call and Google will track that.
Ads allow you to track the ROI. If you know what your average website lead is worth. And You convert 1 out of 10 and the average click is $25 and the average sale is $1,000.
What % of traffic turns into leads
How much is my average lead worth
How does this
Last bullet – because people are only looking for a specific AdWords. But social will show up in a feed ands wide open. You are playing less per impression or click than what you would on a very targeted AdWord term. Because there is a limited inventory on search ads.
Is Vistors the right word here?
FORMS - Online forms allow web visitors to interact with your company and you to collect their contact information.
FORMS - Easily get information and keep it for analysis or manage it in any way you see fit.
CHAT - Can be used at almost every stage of the customer lifecycle.
CHAT – Nurture leads, engage prospects, assist customer service reps
CHAT – 82% of consumers rate an "immediate" response as important or very important when they have a marketing or sales question
CHAT - 90% of consumers rate an "immediate" response as important or very important when they have a customer service question.
CHAT - Timing is everything
Can be a no risk evaluation. Or save 10% off your next order
Other People’s Money. Who’s seen it? Lawrence Garfield… Danny DeVito play L.G.; talking to Penelope Anne Miller. (For someone who hates lawyers so much Lawrence you sure have a lot of them.)
Raise your hand if you’ve ever sued someone or been sued by someone.
I’m going to throw some adjectives at you to describe your experience, and keep your hands raised if I’ve gotten it right.
Expensive.
Time-consuming.
Energy draining.
Distracting.
Your lawyer made a ton of money off of you whether you won or lost.
Name got dragged through the mud in public court filings.
Giant, tremendous pain in the ass.
First you: Business owners? Students?
Practicing 16 years
Litigation
Army
In-house counsel
Law firm
CM6
I’ve worn a lot of hats and uniforms. The one that taught me the most about how to protect my clients was this one I wore in Iraq…
My job was to get these guys and all of their equipment from Kuwait to Baghdad.
5 day trip
Two lessons:
Creating a hard target – sandbags, gun-trucks, spacing, recons, coms, training
Everything you did to become a hard target was done before you ever left your base,.
Remember all those adjectives?
I’m going to give you practical steps …
When you walk out of here today, you’re going to be a hard target. Let the other guys attract the lawsuits.
A business is a series of relationships with people waiting to sue you.
Choose an insurance company that has products specifically for car dealers
Choose an insurance company that has products specifically for car dealers
Choose an insurance company that has products specifically for car dealers
Choose an insurance company that has products specifically for car dealers
Choose an insurance company that has products specifically for car dealers
Waterfall
Choice of law
Venue
OIADA / LJ is key
Repeat dispute resolution
The key here is BE SPECIFIC
Bad kid in the sandbox
Terms and conditions
The bad kid in the sandbox
Don’t rely on handshakes.
Your corporation is your fortress protecting you from everyone.
But you have to avoid piercing the corporate veil.
At minimum, you need an operating agreement or a shareholder agreement.
Maintain corporate formalities
How many people here have employees?
How many expect to have employees in the near future?
Assume they’re disgruntled.
Have them sign a receipt and understanding paper.
At will employee
No discrimination allowed.
Investigation process.
Reporting workplace injuries.
Must comply with all laws.
4 elements – competition, solicitation, employee raiding, confidentiality
Difficult to enforce, but they have value
Limited in scope, geography, time
Attorneys’ fees
Call your chamber
Call your chamber
Bane of my existence
Viruses
Online defamation
Stolen credit card information
Totally helpless
All company equipment is searchable and the property of the company
Limit sites they can visit
No downloading
GUESS WHAT: THEY DON’T HAVE TO BILL BY THE HOUR!
BEST TIME TO INTERVIEW A LAWYER IS BEFORE YOU NEED ONE.
For the first time?
Now you can look at the whole bill (with TPI)…
For the first time?
Now you can look at the whole bill (with TPI)…
For the first time?
Now you can look at the whole bill (with TPI)…