Posted on 15/04/2016, 09:06
The demands of running any enterprise can mean that some of the basic disciplines are sometimes over looked. This applies just as much to large corporations but can be especially true in an SME where the hard pressed owner is often wearing many hats.
It is a good discipline to regularly review key areas of the business and tidy up the unintended messes left behind as a consequence of doing business.
Having a set of key performance indicators for key areas of the business will draw your attention to potential problem requiring attention. So what are the nooks and crannies that you can look into to smarten up your business and make it more efficient?
Ensure you have a disciplined invoicing and credit control process and politely but firmly make sure you are paid on time.
Put in place a plan to liquidate the slow moving and obsolete items, redeeming valuable cash and determine to review stock rotation regularly to avoid the problem in the future
Measure times spent on clients & services and track this against budgets, amounts billed and written down/off.
Review your expense costs and if required put in place a purchasing policy with appropriate accountability and controls
In or last article, “Measuring What’s Important” we discussed key performance indicators or KPIs. There are lagging KPIs such as financial measures that tell you what just happened and leading KPIs that indicate what your financials are likely to look like.Read More
Following on from our previous blog in this series, “The Most Important Thing”, the next step is to translate your goals into action. For this, setting your targets and measuring your performance against them is vital to making them happen.Read More
What do you want to achieve in your business? Every owner manager had their reasons for why they started out on that journey – what are yours? And more importantly, are they still valid, are you on track, or are your hopes and desires being frustrated?Read More