
Hey guys,I am trying to convince the company I work for to promote me from a middle manager position to a director level (a new position I am pitching). See my case below:Direct Costs:· Increase in Salary for Me: $40,000· Increase in Salary for promoting someone to my current role: $15,000· Hiring of a new Account Rep: $50,000Total direct costs = $105,000I am proposing that this new role would generate at least one large client per year ($700,000 +) and the LOWEST profit margin we have on a client that size is 16.44%. It is important to note that the current position I am in I have secured at least one large client per year over the past five years. This new role would have me still focusing on sales but less management of day to day operations. Additionally, I would have more input into company strategy and targeting specific market segments, in line with senior leaderships vision.So our profitability even at its lowest on $700,000 would be $115,080 (16.44%) in year one. Assuming we keep this pace up in year two, using the same amount of resources profitability would be $230,160 (two clients at $700,000 now). We are in a service based industry so clients continue to use our service year over year. We have a very high retention rate also.Year One ROINet Profit$115,080Direct Costs$105,000ROI (Profit - Direct Costs)/Direct Costs9.6%Year Two ROINet Profit$230,160Direct Costs$110,000ROI (Profit - Direct Costs)/Direct Costs109.24%This is in addition to intangible benefits that I have listed out, which are numerous. I also have included cost savings from streamlining of processes.My question is, does this ROI analysis make sense? Please assume I can back all of this up with actual statistics and data and data. What questions or concerns would you have as a share holder?Appreciate any and all feedback! via /r/business http://bit.ly/2F14hj2
No comments:
Post a Comment