ABOUT WHAT HOW AND WHY = TONS of GREAT INFORMATION

Solutions for making MONEY ... just check at the bottom of this site.

"FOR SUCCESS

For you to WIN.... you need to understand that IN BUSINESS

If you want Check Contents Here

The following is what becomes extremely important for you to know and to do:

WHAT TO DO WHY TO DO IT HOW TO DO IT

To succeed and to keep "TROUBLE" away

YOU MUST KNOW

What and Why and How to do EVERYTHING !

"HEADACHES" Learn to Avoid them !
Let's figuratively envision how this will work as we examine a set of "GEARS".

The "GEARS" must "MESH" in order for things to work smoothly.

To make your business work like well-greased GEARS you must have and use
our "TOOLS" -- which are based on a life-time of experience ....

You may avail yourself of the "TOOLS" and you will know how:

In this web-site, we cover those (tools) one can utilize for PERSONAL .... or ... BUSINESS needs.

Let's begin with the BUSINESS category... "MONITORING":

This is a critical consideration whether you are in business or considering going into business.

It will be applicable if you are experiencing success and growth and may
wish to expand or in the case of poor cash flow and the ensuing problem.

Then "MONITORING" becomes critical for existence and success !

Don't fight the uphill battle      learn what to Do !

Yes ... we offer what you will need ! Let's make it VERY CLEAR -- that --
If you are in business (or going to start a business), it is mandatory to know, in detail about:

WHAT TO DO -- WHY YOU NEED TO DO IT -- HOW TO DO IT !

You may be a new START-UP --- or an EXISTING business, and particularly if you have begun
to have "SITUATIONS".   Or you want to expand or wishing to minimize your operations.

Better get some or all of the articles....

YOU WILL NEED TO "KNOW"

Let's discuss the      Things we need to do.

CONTENTS ...

(for now = this is a partial listing of the ARTICLES and TITLES)

A = The ENTREPRENUER and MARKETING

B = MONITOR --This covers what you MUST KNOW ... (to stay in control of your business).

    We're giving you (here) the "MONITOR" information as an example of the depth of content
and what sort of information you receive in each of our listed articles.

Notice the details.   Only proven performance and experience can give you this !

To CONTROL      You Must Use ...
DILIGENCE

And ..... You have to know what you must MONITOR to gain SUCCESS!

Managers know the problems of fighting the daily barrage of hourly operating data that assaults the mind. The realization that you can't track every detail of your business will come in due time. But you can be sure -- it will become "reality".

Delegate selected functions to SOMEONE you feel can and will "perform".

Can you depend on that individual to "follow through" over a period of time ?

If you don't or can't depend on that individual to follow through, you will be
"SECOND GUESSING".   That person must PERFORM !

YOU will not SAVE TIME – as you thought you would.

YOU will still BE INVOLVED (TOO MUCH). The message here is:

Although you have "delegated", you need to check often to see that the individual
is doing the job as required and feeds you the data (etc) as needed.

AN INTERNAL MONITORING SYSTEM IS WHAT YOU NEED.

This has to be conservative and tailored to give needed and DESIRED RESULTS.

When properly organized, you can compare CURRENT FIGURES with PROJECTIONS.

Also compare and concentrate on more important BENCHMARKS like: CURRENT FIGURES vs PROJECTED FIGURES
(this is the place where you hope to be or want to be).

SOME THINGS YOU SHOULD "MONITOR:

SALES:

Check Sales (often called = Revenue) DAILY.

Do this so that you at least know the volume of business your company is booking.

At least weekly, check not only volume but where the sales are coming from.

Get your system to supply YOU the information you want and need.

You will be able to understand what your company is doing and you will spot
slow-downs as well as sales growth.

    You should know how your sales were in past periods:
for months, quarters and semi-annual figures.

This will make it easier for you to compare and make faster, more informed decisions.

SET IT UP TO GET SUCH INFORMATION AT DESIRED TIMES.

REVIEW SALES FOR EACH: PRODUCT and SERVICE.

You should have a proper working arrangement with your CPA.
Be sure they submit figures as explained above.

(These will come from the method in which your books are kept and
the records you feed to the CPA).

You must run your business based on having information NOW = FAST.

The CPA presents "figures" is based on what the BANKERS WANT.

That's what you are given by your CPA.

        Evaluating the information you receive, should help you to operate your business.
Do you see why you have to "see" what they give you?
This is in reality the PAST.

You need information so you can re-act to what you "see".

Why? So that you can properly approach and act upon future planning.

(Much more to come on this subject = super important for the merchant to succeed).

     Learn to calculate the RATIO of GROSS PROFIT to NET SALES = (REVENUES):

     Looking only at SALES FIGURES and not EXAMINING COSTS, will have you IN
          DEEP TROUBLE.

          This refers to the DIFFERENCE between REVENUE (SALES) and your COSTS to produce the revenue. It's a good idea to EXPRESS THIS AS A PERCENTAGE OF THE SELLING PRICE.   The RESULT: It will enable you to Guide your business for success.

      On a weekly basis: Look at Gross Profit RATIOS for the total BUSINESS.
           This is FOR EACH DIVISION and / or SERVICE CATEGORY

          Also do this for INDIVIDUAL EXPENSE ITEMS.

          Only when the RATIO IS "OFF", should you want to DIG DEEPER TO FIND AND
          CORRECT THE PROBLEM.

DIRECT EXPENSES:

Review these monthly for all company operations. The larger and more discretionary the Individual item, The more it should be scrutinized. (SUCH THINGS AS: TRAVEL AND ENTERTAINMENT EXPENSES.)

Point out that gross profit is affected by every Travel and Entertainment DOLLAR SPENT.
PROFIT IS REDUCED BY T & E EXPENSES.

Set yourself up a "FLAG AMOUNT" (like $ 2000 PER MONTH) for any Expense Item.

If this is exceeded, CHECK INTO "WHY?"

At the end of the expense listing, you often see "OTHER".

THIS IS A VAGUE CATEGORY WHICH OFTEN IS LARGER THAN OTHER EXPENSE ITEMS.
IT IS LIKE "FLYING BLIND".   INSIST ON A BREAKDOWN OF THE "OTHER" CATEGORY THAT EXPLAINS ALL ITEMS OF $ 100.00 OR MORE.

OTHER INCOME AND EXPENSES:

TRACK THIS "HAZY" CATEGORY AT LEAST MONTHLY-- (PREFERABLY WEEKLY).

THIS IS WHERE ITEMS LIKE INTEREST PAYMENTS AND SIMILAR NON -OPERATIONAL FACTORS ARE SHOWN. AS INTEREST RATES INCREASE, THIS INCOME STATEMENT ITEM BECOMES MUCH MORE IMPORTANT.   IT MUST BE WATCHED! Pay attention to this item!

NET PROFIT:

CHECK THIS MONTHLY.   IT IS ALWAYS AN EXCITING FIGURE TO LOOK AT, BUT BY THE TIME YOU’VE REACHED IT, YOU SHOULD ALREADY HAVE A PRETTY CLEAR PICTURE OF WHETHER NET PROFIT IS GOING TO BE HIGHER OR LOWER THAN PLANNED, AND WHY.

IF NET PROFIT IS NOT WHERE YOU EXPECT IT TO BE, GO OVER THE OTHER MONITORING STEPS TO DISCOVER WHY IT IS OFF TRACK.
CASH FLOW:                                                                              Print this page

A POSITIVE CASH FLOW IS VITAL.

A PROFITABLE COMPANY CAN FAIL RAPIDLY IF IT DOES NOT GENERATE ENOUGH CASH FLOW TO PAY ITS SUPPLIERS.

BANKS BECOME RELUCTANT TO EXTEND LINES OF CREDIT IF THERE ISN’T ENOUGH CASH TO KEEP THE BUSINESS OPERATING.

MORE BANK CREDIT REDUCES PROFITABILITY BECAUSE OF INCREASED INTEREST PAYMENTS.

MONITOR CASH FLOW EVERY WEEK SO YOU CAN BE SURE YOU ARE STAYING AHEAD OF THE GAME.

ACCOUNTS RECEIVABLE:

IT IS EASY TO LET ACCOUNTS RECEIVABLE PILE UP.   YOU MAY FEEL THAT IT
IS TOO EXPENSIVE TO GO AFTER TARDY ACCOUNTS.

IF YOU ARE OVERLY DEPENDENT ON A PARTICULAR ACCOUNT, YOU TEND TO "LET IT RIDE" LONGER THAN NORMAL.

REVIEW AT LEAST MONTHLY (PREFERABLY MORE OFTEN IF CASH FLOW IS SLOWING UP).   COLLECTION OF ACCOUNTS RECEIVABLE IS A VERY IMPORTANT FUNCTION AND EVERY EMPLOYEE INVOLVED IN THE FUNCTIONS OF THIS DEPARTMENT MUST BE EFFICIENT AND VIGILANT.

TRUE, YOU MUST CREATE THE SALE (REVENUE), BUT IF YOU DO NOT GET PAID ON A TIMELY BASIS, THE COMPANY WILL FAIL.

INVENTORY:

IN MOST BUSINESSES THIS IS A VERY IMPORTANT CATEGORY.

IT IS EASY TO MISJUDGE THE MARKET AND TO OVERBUY.   INVENTORY SHOULD BE CHECKED EVERY WEEK AND EVERY MONTH FOR LEVELS OF INVENTORY AND FOR WHAT THE INVENTORY CONSISTS OF.

OF COURSE, NOW (2004), YOU CAN SET UP OPERATIONS SO YOU KNOW YOUR INVENTORY ON A DAILY BASIS. THAT MEANS "YOU" MUST BE AWARE OF EXACTLY WHAT THE STATUS IS.

THIS SHOULD BE DONE AGAINST PROJECTIONS OF HOW MUCH INVENTORY YOU NEED TO SUPPORT AVERAGE ESTIMATED SALES (REVENUES).

PROJECTIONS OF INVENTORY LEVELS DEPEND IN PART ON ANSWERS TO QUESTIONS SUCH AS:

"HOW FAST CAN WE GET SUPPLIES // MATERIAL?   ARE COSTS RISING OR FALLING?" KNOWING THIS IS CRITICAL FOR SUCCESS.

ALSO, YOU NEED TO BE VIGILANT TO KEEP INVENTORY CURRENT AND SALEABLE. OLD, OUTDATED INVENTORY CAN LEAD TO LOWER PROFITS.

IN MEDICAL -- (HOME CARE) --SITUATIONS WITH THE EXCEPTION OF THE SUPPLIES NEEDED TO RENDER THE SERVICES, YOUR MOST IMPORTANT CONCERN IS WITH "HOW MANY CALLS CAN WE MAKE?" ( THIS IS SIMILAR TO GENERATING MORE "SALES").

YOU MUST DEVELOP "SALES" BY THE "CALLS" THE PERSONNEL MAKE.

YOUR "INVENTORY" IS IN HAVING GOOD PEOPLE TO MAKE CALLS. THIS IS LIKE HAVING INVENTORY TO SELL -- WHICH BECOMES "ACCOUNTS RECEIVABLE", AND THIS BECOMES CASH RECEIPTS AND LEADS TO PROFIT.

RESEARCH AND DEVELOPMENT:

RESEARCHING INTO THE COMPANY FINANCIALS, GETTING RATIOS AS WARRANTED, SCRUTINIZING EXPENSES, SALES (REVENUES), COSTS, DAYS TO COLLECT, INTEREST COSTS FOR LOANS (PARTICULARLY FOR "SHORT TERM LOANS").

RESEARCH AS APPLICABLE TO PERSONNEL:

ATTITUDE, WILLINGNESS TO COOPERATE, COURTESY, VOCABULARY, LANGUAGE, RELATIONSHIPS WITH CLIENTS AND COMPANY LOYALTY.

IF THIS RESEARCH SHOWS NO WARNING SIGNALS, STOP LOOKING. OTHERWISE, START TO "DIG".

RESEARCH APPLIES ALSO TO DEVELOPMENT OF MORE SALES (REVENUES).

SPECIAL NOTE:

THIS SELECTIVE PULSE-TAKING PERMITS THOSE IN MANAGEMENT TO FOCUS ON THE BIGGER THINGS INVOLVING THE GOOD OF THE COMPANY.

IT PERMITS DELEGATION OF DUTIES TO OTHERS (WHO MUST PERFORM THOSE DUTIES FOR WHICH THEY HAVE NOW BEEN MADE RESPONSIBLE).

THERE HAVE TO BE COMPANY "GUIDELINES".

THIS ENCOMPASSES THE "DO’S AND DON’TS" FOR PERSONNEL TO OPERATE BY FOR THE GOOD OF THE COMPANY AND THE ENTIRE EMPLOYEE GROUP, COMBINED.

WHEN CORPORATE AS WELL AS DEPARTMENTAL GUIDELINES, FORMS, FORMATS, ETC. ARE ESTABLISHED, TOP MANAGEMENT CAN EXPECT EACH DEPARTMENT MANAGER TO MAKE APPROPRIATE REPORTS IN A TIMELY MANNER.

IN THE SAME WAY, EVERY MEMBER OF A DEPARTMENT, MUST ADHERE TO THE RULES AND THE RESPONSIBILITIES EACH HAS FOR THE GOOD OF THE DEPARTMENT AND THE COMPANY.

ABOVE ALL IT IS ........... ATTITUDE !!

SHOW TO OTHERS THE ATTITUDE YOU EXPECT TO RECEIVE FROM THEM.

IT WORKS !

By: "amicos"

Have you begun to "SEE"why this is so important ?

B-1 = A GOOD MANAGER adds PROFIT to the BOTTOM LINE

C = THE BUSINESS PLAN -- (an OPERATING PLAN)

C-1 = COUNSEL // ADVICE and the FINANCE SERIES

C-2 = UP-DATING THE BUSINESS PLAN.. (an ongoing duty)

D = PROPOSAL FOR A LOAN (there is a "right way" to do this)

* WHAT the BANK and the LOAN OFFICER WANT TO KNOW

* WHERE to FIND FUNDS to FINANCE a BUSINESS

E=DEVELOPING THE "BREAK EVEN POINT" ... this functions to run your business ..

It has to be your:    "I MUST DO THIS ! FOR PROFITABLE SUCCESS !

F=BUSINESS RATIOS AND "HOW THEY WORK"

MUCH MORE TO COME .... THIS WAS MERELY A START...

SPECIAL NOTE           FOR "YOU"

Our major efforts now are for
"BETTER BUSINESS AND PERSONAL HEALTH "
for you and for us too.

Page accessed   times.

Updated April, 2004.