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 Tip # 1 – “The three most important things you need to measure in
a business are customer satisfaction, employee satisfaction and cash
flow.” Jack Welch, former CEO General Electric Company.
Please find a cash
flow status report in this section that can be customized to fit
your needs. Each situation is different. Inventory
purchases and capital expenditures may also need to be considered in
calculating the cash flow of your business.
Tip # 2 – When selling a product in a capitalistic economy, you
are actually selling a combination of three things: price, quality and
service. Customer can buy only two out of these three at any given
moment. Any two out of these three, but not all three items at the same
time. Successful businesses have the responsibility to help each
customer accept a compromise on the third item. Otherwise, customers
can put you out of business.
Tip # 3 – Avoid analysis paralysis by having an action
orientation ---ready, fire, aim! Once you have determined who, what and
approximately where your target is, start firing. The data your company
needs to analyze comes from scrutinizing close misses, not from theoretical
musings. (Tom Peters in Search for Excellence, Chapter 5).
Tip # 4 – Selection process – get the
right people on the bus. When in doubt, don’t hire – keep
looking. (Good to Great, p54, Jim Collins)
Tip # 5 – Cost accounting systems are built on a set of business
assumptions. Every cost accounting system, no matter how adequate,
needs to have its assumptions monitored and checked continuously.
People come and go, overhead structures change and products are added.
Because each business changes and evolves over time, each cost accounting
system needs to be compared to actual costs at least every six months.
Call Paul Updike @ 480-964-1455, to address these issues now. Satisfaction
guaranteed ▲ or you
owe nothing! ▼
FIVE WAYS to INCREASE
PROFITABILITY
by USING EFM, without INCREASING SALES.
#1 Increase your
Margins. Do you know which products and services improve your bottom line
best? When a customer wants volume discounts, will your cost-accounting
system give you your true costs? EFM
can install an activity-based costing system for you.
#2 Improve Efficiency. Is your shop floor information accurate? Does
your estimating reflect reality? Has your job-estimating model kept up with
innovation? Do you know when management should intervene on the shop floor? EFM can create meaningful, daily
reports.
#3 Reduce Waste. Which machines and which
operators make you money or which cost you money? Do you understand customer
specifications before you start producing the job? Are your employees using
your installed software correctly? EFM
can tailor your shop floor software to fit your firm’s needs.
#4 Purchase Smarter. Do you buy materials in the right volume? Do
you buy quality supplies? Is your relationship with your suppliers and with
your bank good enough to allow you the capital you need to purchase the
correct amount of materials? EFM
can provide critical, decision–making information.
#5 Price Your Products &
Services Carefully.
Does the interplay of supply and demand always determine the price of your
products? EFM can increase your economic IQ by teaching you to ask the
right questions.
Call Paul Updike @ 480-964-1455, to address these issues now. Satisfaction
guaranteed ▲ or you
owe nothing! ▼
FIVE IMPORTANT BUSINESS PRACTICES
1) Improve your relationship with
your bank. Give them accurate and timely
financials to make sure you have all the capital you need, in advance. EFM can help extract accurate
information.
2) Save time by simplifying. Sort the
information into two piles – A) critical information, B) unimportant. Then ignore pile B. Avoid information
overload! EFM will help you
decide which information is critical.
3) Practice smart collection policies. A) Contact your customers
frequently; B) Customer must receive exactly what they ordered; C) Agree on
payment terms prior to doing business; D) Resolve all claims and credits
immediately; E) Follow up on every customer commitment to pay a certain
amount by a certain day. EFM will
standardize your cash-flow efforts.
4) Get and keep the customers you want. Determine the combination of price, service and quality
that your production offers, then become world class in your market niche. EFM can help you adjust your business
model to make more money.
5) Update critical cash flow information daily. Know
exactly who you owe and how much you owe and who owes you and how much they
owe at all times. Keep your promises and help your customers keep theirs! EFM will customize your cash-flow
reporting.
Call Paul Updike @ 480-964-1455, to address these issues now. Satisfaction
guaranteed ▲ or you
owe nothing! ▼
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