Finance Training 1.0

why are we here?

choose: greatness

POWERFUL CHOICES

Taking ResponsibilityKeeping Accountability

Welcome to AIESEC in the United States

let’s take a look

Cash Flow

What makes money in AIESEC?

Cash Flow

What makes money in AIESEC?

How much is each program?

Cash Flow

What makes money in AIESEC?

How much is each program?

When is our peak?

Local Committee

What is an LC consist of?

Local Committee

What is an LC consist of?

Who are the account managers?

Local Committee

What is an LC consist of?

Who are the account managers?

Where do you find information on an LC?

Expenses

What are our major expenses on the local level?

Expenses

What are our major expenses on the local level?

What are examples of expenses that are considered “Optional?”

DAILY YOU

MANAGINGINVESTINGTRACKING

LEARN BY DOING

BUDGETING

Split into a group of 3… 15’

You will create a budget for a NPMEstimated: 75 AttendeeLocation: In-door (1 plenary+2 breakout) Food: Yes (2 lunch, 2 dinner, 2 breakfast)Delegate Fee: $70

*National President Meeting (Presidents’ Retreat) is a weekend long event who’s goal is to have all the Presidents come together to be trained and decide

the direction of our national entity

Events Outcomes

On average every NPMS goes on a loss between $200-$500 dollars

…Poor planning…No tracking…Misunderstanding

Finance’s role is NOT passive

Identify Risks

Do you have what it takes to

run an LC?

Interesting and captivating details of the effect

Let’s see about that

Split into a group of 3 (Preferably not from your LC)

YOUR CHALLENGE IS TO RUN AN LCCan you ensure it becomes the most profitable in our entity?

Tools

You will be given...

Reality

Current Balance

List of Potential Expenses

Your RealityCity Population: 40,000 Student Population: 20,000LC Size: 43 (50% Conversion)Last Year Realization:

24 – oGCDP4 – oGIP

Current Balance: $250

But first…

Design Your Year

Come up with….

LC’s Name

This Year’s Goals (OGX, TMP)

10’

Limitations

Every company has issues…

$3000 in Affiliation Fee in end of April$9000 in Affiliation Fee in the end of October$1000 in Conference Closeout in end of February

No new activity in Late March and Late June(Finals + Spring Break)

Only may have max 2 recruitment

You will lose 25% of membership in June

You will have 25 minutes to emulate a year

You are to use your best judgment to purchase the right expenses for the year

In order to actually win, you must achieve all of your goals

You will receive the benefits after the lag time of the expense

Shopping List – Fixed CostCost Lag Time

Membership Induction $10 per new member

None

Outgoing Preparation Seminar $10 per EP NoneRegional Conferences $100 Per new

MemberNone

*Membership Induction must be during the week of recruitment*OPS will be the last week of May (Total number of Eps)*RoKS will be 3rd week of February

Shopping List – Optional CostCost Benefits Lag

TimeMarketing Round 1Tier 1

$100 15 EPs ($9000)12 Members

4 weeks

Marketing Round 1Tier 2

$200 20 EPs ($12000)15 Members

4 weeks

Marketing Round 1Tier 3

$250 25 EPs ($15000)20 Members

4 weeks

Membership Retreat $20 per Neglect Membership Loss/Raise Conversion to 75%

None

Y2B/Youthspeak $2000 15 Eps ($9000) 2 weeks

Marketing Round 2/3

$200 # EPs = 25% LC (Unaffected by Conversion)

2 weeks

IXP $100 per 1 EP for Summer +$500 per None

Some Help:National Support Fund is a budget of $2000 that is provided to the plenary as a support fund, in order to access this you MUST get all LC’s approval.

The idea for the project must be innovative.

What will this look like?

A timeline of 12 monthsSplit into weeks (4 weeks)

You will pay the affiliation fee on the last week of April and October

Conference Closeout on the end of February

Summary:

30’

Cost Lag TimeMembership Induction $10 per new member NoneOutgoing Preparation Seminar

$10 per EP None

Regional Conferences $100 Per new Member

None*Membership Induction must be during the week of recruitment*OPS will be the last week of May (Total number of Eps)*RoKS will be 3rd week of Februrary

Every company has issues…

$3000 in Affiliation Fee in end of April$9000 in Affiliation Fee in the end of October$1000 in Conference Closeout in end of February

No new activity in Late March and Late June(Finals + Spring Break)

Only may have max 2 recruitment

You will lose 25% of membership in June

Cost Benefits Lag Time

Marketing Round 1Tier 1

$100 15 EPs ($9000)12 Members

4 weeks

Marketing Round 1Tier 2

$200 20 EPs ($12000)15 Members

4 weeks

Marketing Round 1Tier 3

$250 25 EPs ($15000)20 Members

4 weeks

Membership Retreat $20 per Neglect Membership Loss/Raise Conversion to 75%

None

Y2B/Youthspeak $2000 15 Eps ($9000) 2 weeks

Marketing Round 2/3 $200 # EPs = 25% LC (Unaffected by Conversion)

2 weeks

IXP $100 per 1 EP for Summer +$500 per None

Jan Feb Mar Apr May Jun-25%

-1000 No Act -3000 No Act

Jul Aug Sep Oct Nov Dec

-9000

Summarize Timeline

Results

Debrief