Boosting The Bottom Line
January 1, 2016
January is a great time to look at boosting the bottom line- by conducting a business health checkup:
- Does the business have enough capital to operate? You should periodically and evaluate the company’s cash flow needs. Does it have enough working capital to get through its accounts receivable/payable cycles, business downturns or disasters?
- Do you have a sound company? Businesses should review management line of succession. Does everyone understand the lines of command? Do the company’s personnel policies comply with current laws and operations? Prepare a disaster recovery plan.
- Do you have a short term and long term business plan? Business planning is the key to success, whether starting or continuing a small business. Setting short and long term goals helps define the work day as well as how to meet the needs of the business in the long run.
- Are you thinking expansively about your customer base, suppliers and resources/advisors? In this global marketplace we are no longer restricted to selling locally. You should be seeking customers, suppliers and resources wherever located to best serve your business needs. Markets are diverse- so must your sales methods be diverse: through multiple media (storefront, joint ventures with other businesses, on line through web or social media, etc.)
- Does your company have an effective communications strategy? 24/7 availability is necessary in today’s economy especially with global time zones. Fast, reliable communications equipment helps you be responsive to the needs of a widespread customer and supplier base.
- Technology up to date? Your competitors are… Effective competition requires cutting edge technology. You have to be able to respond to the needs of your current and future customers- most of who grew up on computers and the latest gadgets.
- Is your company operating as efficiently as possible? Maximum efficiency makes you a lean, mean business, able to price competitively, deliver on time and maintain quality control- all necessary ingredients to a healthy bottom line.
- Are you and your employees still learning? Stay on top of trends. Be current in production methods. Use the latest and greatest advice.
- Do you have a great support team? Surround yourself with staff, advisors and others who can help you succeed. Put together a team who’ll give you the best ideas and support.
- Are you the best in your field? Being the best means you will be the supplier of choice, regardless of price or location. If you can’t offer the lowest price, offer the best quality, be unique. You don’t achieve any bottom line without loyal customers.
- Do you have the five legs of business strength in place? information technology; sales and marketing; operations, finance and human resources. Efficiency in all five legs are necessary to build a strong business foundation and boost that bottom line.