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Most owners of small or mid-size businesses have limited
time to resolve their issues that are strategic in
scope, centered around revenues, costs and expenses,
cash flow, people, products, pricing, processes, plan-ning,
priorities, and profits. They are in the trenches, immersed in the
battle of the daily grind, which easily consumes 40+
hours every week. Consequently, these issues either
are addressed ad hoc, after hours, or only when a fire
breaks out.
NetMark helps executives or owners focus on these issues
and arrive at solutions that can be put in
place promptly and properly. Some of the solutions may include:
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Revenue
Analysis:
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Implementing a customer
or prospect stimulation program to boost income.
Often, the easiest place to get more business is
from existing customers, or prospects
who are very similar to the existing customer
profile.
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Determining if you have
an unknown loss leader or want to implement a known
loss leader
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Finding out if a revenue
stream or product line is a bottom line benefit or a
drag on earnings
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Dissecting each revenue
stream to determine its contribution margin
Cost Analysis:
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Costs are expenditures
we have to have to operate the business, such as
cost of goods sold, as opposed to expenses - many of
which are optional.
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Determine if your
company can reduce costs, but recognize that the
gain will not likely be astronomical or
earth-shattering.
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What cost methodologies
are in place and are they adaptable during market
shifts in demand for your products or services?
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During good
times, we tend to operate a bit more loosely, and
rely on existing vendors to keep their pricing fair.
This needs regular review, as well as consideration
of competing vendors to keep costs under control.
Expense Analysis:
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A line-by-line analysis
and careful trimming will yield positive bottom line
results; ad hoc slash and burn cutting usually
fails.
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Typically, your #1
expense will be employees, and cuts here will always
be difficult. If the think-ing is: "What is
best for the business," then you will likely arrive
at the right result. If it is cut for
cutting's sake, you will usually screw this up.
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Some expenses will be
linked to costs and some to volumes. It is a
delicate dance to reduce some of these.
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You will discover a lot
of nonsense you won't even know you were paying for
when you get down in depth. It may not be a
lot of dollars, but every dollar makes a difference.
Cash Flow:
- The true measure of
cash flow is a product's cash-to-cash cycle.
Most company's track their past due receivables, but
don't know how long it takes for cash put into
action to return to their bank account.
Shortening this cycle by a few business days can
have a major impact on payables and even banking
relationships.
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People:
- Many businesses
recognize the value of their human resources.
Unfortunately, some of them have been unproductive
for too long. NetMark can help separate the
wheat from the chaff and build a team that can win
in your competitive environment.
Products/Services:
- Are you trying to
create a prototype?
- Are your products or
services still relevant to your marketplace?
- Has your company
kept up with technology?
- Have your budgets,
expenditures and pricing included planned upgrades
and obsolescence?
- Have you undergone a
SWOT analysis (which you can apply to almost any
product or area of your business)?
Pricing:
- This is one of the
most complex elements for any business to tackle
because it accounts for all internal and external
factors, from overhead, cost of goods, sales and
marketing expenses, to perceived value, competitive
products and supply and demand.
- Eventually, this
must become quantifiable and justifiable so that it
doesn't under or over-estimate vital elements that
retard sales and success.
Processes:
- Every product or
service is delivered through a process. The
better the process is documented and understood, the
more likely a business can adapt to competitive
opportunities or changes in the marketplace.
- NetMark's analysis
of your processes can show areas for improvement or
waste and corruption (not the legally punishable
kind, but where the process produces unnecessary
waste or has been corrupted by alterations in its
functions).
Planning:
- Only 3 in 100
businesses have a business plan. According to
government statistics, 50% of businesses fail within
12-18 months, and 96% fail within the first 5 years.
However, only 1 in 10 businesses with an active plan
fail.
- A business plan does
not have to be a huge undertaking, and can be
accomplished through a well-communicated outline of
the business.
- Holding an annual
Business Summit meeting that involves employees,
management, outside vendors and suppliers, advisors,
and customers can help shape or reshape a business
and its plan in a matters of weeks or even days.
NetMark can help you organize, document and digest
your Business Summit meeting.
Priorities:
- Eventually, business
renders down to priorities that the business can
faithfully and success-fully execute.
- NetMark can help you
determine your priorities and help you execute them.
Don't wait - call us today, toll-free at
888-605-6400.
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