Lessons in O100 covered by fee
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...
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, you may...
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...
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...
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...
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...
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...
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...
Does your business rely on inventory? Then there are quite substantial savings to be made with improved inventory management. Reduce inventory cost and reap the benefits. This comes from two directions: Reduce the total Inventory you hold. Thereby reducing the amount of Working Capital tied up in Inventory. Reduce your debt and...
Fixed Cost or Overhead Cost are those that will exist even if the business does not hypothetically produce anything. Alternatively, they can be thought of as costs that do not vary directly with production output. They include things like office and factory space, furniture & fittings and realistically speaking include all labour other...
