Right Sizing Your Business

Use Business Intelligence and Financial Data to Streamline Your Operation

John D. Beneventi, Co-founder and Financial Officer

Ron de Frates, Co-founder and Technical Officer

5x Solutions, LLC Telemetry BI

The “Boom” is Over - What Now?

• DO NOTHING – status quo (everything is perfect)

• REORGANIZE – minimize loss risk by changing to meet current demand

• CRYO-FREEZE - keep company and relationships current without transacting

until market demand returns

• SHUT IT DOWN – you’ve made a lot of money during the boom. You’re done w
the mortgage business for now….
 Getting Started: MVP vs. Current
(If you could redesign your business today)

• Calibrate Demand w/ Fulfillment Staffing

• Review Your Org Chart – compare existing to proposed w/ “bull/bear/neutral” market

• Calculate Breakeven - Understand Production Levels and Costs

• Future Funding - Forecast Funded Loans

• Re-Calibrate - expected number of loans per position (2023)

What is your 2023 FORECAST??
Are you realistic about your opportunities?
Nail These Metrics

• Gross Income (in bps)

• Fixed FTE (labor) costs
• Non-FTE fixed costs
• Variable loan exp (bps)
• Variable bonus exp (bps)
• Variable commission exp (bps)
Financial Viability Starts at Breakeven
(Measure your breakeven at every iteration)

• Org Chart - define minimum required positions to fulfill at forecast. This minimum viable
production (MVP) is our lowest possible FTE cost to produce the forecast units/volume.

• Identify Staff to Retain

• Augment Staff When Needed - Determine additional positions that provide continuity
for your team’s production.

• Re-Calibrate - each required position using

• expected revenue bps
• fixed FTE costs
• non-FTE fixed expense
• variable loan expense and variable bonus.
 Acceptable Levels of Risk
(Are you content and willing to continue your business given the modifications?)

• Bull, Neutral, Bear case.

Bull Case Net Inc Annual
+20% 30,000,000 $ 87,632 $ 1,051,586
58

2023 Projected 25,000,000 $ 26,416 $ 316,992

48

-20% 20,000,000 $ (39,624) $ (475,488)

38
Bear Case
Reorg, Rinse, Repeat
(Monitor your plan against your actuals)

• Continue to repeat this exercise each month / quarter to calibrate

your plan v actual.
 Telemetry BI
Automated Analytics. Real-Time Measurements. Accurate.
Accountable. Affordable

John D. Beneventi (858) 759-7028

jdb@5xsolutions.com
www.5xsolutions.com or www.telemetrybi.com

5x Solutions, LLC is a proud member

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copyright 2021, 5x Solutions, LLC