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 you have […]

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 First Pricing Improve Sales Funnel Flow Over and Under Stocking By the time you reach this point in the Optimise100 Campaign, […]

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 and/or manage the process of […]

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 your business will substantially […]

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 is working. Group Two: Non-Strategic […]

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 in general and well […]

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 commitment and similar. Product Decision Focused […]

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 that still have […]

C2.4.5 Optimise100 – Zero Based Budget

One discipline applied to costs by high performing organisations is known as “Zero-based Budgeting”. Zero-based Budgets are built from the ground up each year instead of taking last year’s budget as a starting point. Start from the ground up instead of adding a little or taking a little away. Cost Centre Managers – Zero Based […]

C2.4.6 Cost Reduction – Supplier Relationship

One of the easiest, and least painful, places to start a cost cutting exercise is by looking at your supplier relationships. Any activity in this area can have good pay offs. Example: Assume that about half of your expenditure is on products purchased from suppliers. These could be: Manufacture: Variable Costs Retail: Cost of Goods […]

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