C2: Optimise100 (O100)

A straight-forward, structured, approach to streamlining your existing business to rapidly improve your Profit and create stability. Has your business been operating for some time and accumulated wasteful habits? Maybe you have recently acquired a new business which needs some spring cleaning. Are you thinking of selling the business in the not too distant future? Eliminate pricing and costs that are creating a drag on your profitability. It is crucial to streamline the operation of your business prior to generating more Revenue. The Optimise100 Campaign sets you the goal of business stability which in turn can double your Profit in 100 days.

C2.5.2 Increase Revenue – Improve Cashflow

Be mindful of the old adage; "Revenue is vanity, Profit is sanity and Cash is king!". There are a couple of quick boosts to your Cashflow that will help to give you Working Capital for use in tuning other parts of your business. Contents List:Surplus InventoryAccounts ReceivableAccounts Payable Surplus Inventory By the time...

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C2.5.3 Increase Revenue – Sales Revenue

Another long lasting boost to your business can be a growth in Sales.  In this section, we outline how such Sales Revenue growth might be speedily achieved. Contents List:Focus on the Best Customers FirstPricingImprove Sales Funnel FlowOver and Under Stocking By the time you reach this point in the Optimise100 Campaign, you...

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C2.3.5 Optimise100: Task Management

As you work through the plan for optimising your existing business en route to increasing Profits, you will be generating a large number of tasks as an outcome. Learn how to distribute these tasks and delegate them to your team. These tasks can rapidly become difficult to keep in your head...

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C2.5.1 Increase Revenue Increase Throughput

Throughput is the process of moving production through your business. Eventually the production will culminate in cash in your hand from a paid-for sale. Workflow management creates a faster flow (or throughput) of product through your business. What you have learned: That a strong focus on wasted effort and resources in...

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C2.4.9 Cost Reduction – Research & Product Development Cost

Research & Development (R&D) costs are an issue to address if you have any significant amount of money expended in this way. Make sure that your product development costs are economical. Scientists may have difficulty explaining to you, in "English", about why the product development project is important and why...

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C2.4.10 Cost Reduction – Reduce Staff Cost

Earlier on we wrote about the importance of having "the right people on the bus". It is crucial to reduce Staff Cost to boost your Profit. At this point in the project you have decided: What products and what locations you want to retain What products and locations that you...

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C2.4.1 Target Costing

Not all costs should be treated the same. Target costing can be split into 2 groups: Group One: Strategic Costs: Costs that are incurred producing a Profit on the bottom line. In a sales organisation this is face to face sales people (but not their managers) and advertising if it...

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C2.4.2 Optimise100 – Types of Waste

Waste is a term very widely used in the various optimisation methodologies like Lean. There are many types of waste. Take the time to read though the 12Faces material on the sources of Waste and how to record and reduce it. For example, experts usually talk about 8 types of Waste...

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C2.4.3 Cost Reduction – Products to Discard

Over time, the range of products that you have on offer will grow.  Not all of these are good contributors to your Profit. Make positive product decisions and eliminate the ones that detract from your Profit. Take into account such things as inventory, warehousing, sales, personnel, price discounts, time...

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C2.4.4 Cost Reduction – Locations to Abandon

You want to decrease costs but you do not know where to start. Have you built up a number of locations from which you operate? Do these locations vary in profitability? This can depend on the same criteria as mentioned for products to discard. Ones where the market is saturated and ones...

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