Show Me the Money
Show Me the Money
Look for asset purchases that you made during the year. Copy machines, vehicles, computers, phone systems, etc. Could you have found more attractive financing or equipment leases that would have kept your cash in the bank?
Look at your receivables. Have you become the bank for your customers? The Fed won’t bail you out like Citigroup. You need to quickly determine what has become uncollectible, set up the reserves, and start working on getting your money back in 2009. You can take it into income then. Do you have customers who are constantly late in paying their bills? Are the margins and volume enough to justify the relationship? If they aren’t “Fire them”. Look at your 120+ days, 90 days, and 60 day receivables and add them up. You may put a discipline in place to look at 20 day plus receivables to head problems off at the pass. Here’s a hint, if you do cut off a customer please share it with the sales people who take their orders.
Look at your payables. Are you paying too quickly - like by return mail? Sign ALL the checks that go out of your business and YOU feed them to the mailman.
Where are your inventory levels? How do they compare to the beginning of the year? It is not enough just to review your total days supply of inventory. You need to look at individual items, particularly your best sellers. Have big sellers begun to slow down. Benchmark levels for all of your high volume products and identify items that you don’t want to reorder. If you have automated inventory systems change the levels on your computer as soon as possible. Who does your ordering? Take control at least for the next three months.
Is your “Overtime” in “Overkill”? Who authorizes it and who monitors it? This is your employee’s way of giving themselves a raise. Clocking in 5 minutes early and clocking out 5 minutes late can amount to thousands of dollars.
Do the math:
10 minutes x 5 days/wk x 52 weeks = 2600 minutes or 43.33 hours @ time and a half
43.33 hour x 1.5 = 64.5 hours
multiply 64.5 x the hourly rate x the # of employees and tighten it up.
Cash is the life blood of your organization. I hope this will assist you in putting YOUR money back into the bank.
Show Me the Money - To learn more about this author, visit Gary Silverman's Website.
Like this article? Share it with your friends
Let me pose this question. Have you ever had a good net profit month yet you have less cash in the bank? How is your cash position leaving 2008 compared to when you entered it? You need to know because someone will have to “Show you the money”. With credit for business tightened up almost completely you will have to rely on yourself for the cash your business needs to operate, cash that will take you through any losses you may endure in the first quarter of 2009. Want to know where your cash is?
Look for asset purchases that you made during the year. Copy machines, vehicles, computers, phone systems, etc. Could you have found more attractive financing or equipment leases that would have kept your cash in the bank?
Look at your receivables. Have you become the bank for your customers? The Fed won’t bail you out like Citigroup. You need to quickly determine what has become uncollectible, set up the reserves, and start working on getting your money back in 2009. You can take it into income then. Do you have customers who are constantly late in paying their bills? Are the margins and volume enough to justify the relationship? If they aren’t “Fire them”. Look at your 120+ days, 90 days, and 60 day receivables and add them up. You may put a discipline in place to look at 20 day plus receivables to head problems off at the pass. Here’s a hint, if you do cut off a customer please share it with the sales people who take their orders.
Look at your payables. Are you paying too quickly - like by return mail? Sign ALL the checks that go out of your business and YOU feed them to the mailman.
Where are your inventory levels? How do they compare to the beginning of the year? It is not enough just to review your total days supply of inventory. You need to look at individual items, particularly your best sellers. Have big sellers begun to slow down. Benchmark levels for all of your high volume products and identify items that you don’t want to reorder. If you have automated inventory systems change the levels on your computer as soon as possible. Who does your ordering? Take control at least for the next three months.
Is your “Overtime” in “Overkill”? Who authorizes it and who monitors it? This is your employee’s way of giving themselves a raise. Clocking in 5 minutes early and clocking out 5 minutes late can amount to thousands of dollars.
Do the math:
10 minutes x 5 days/wk x 52 weeks = 2600 minutes or 43.33 hours @ time and a half
43.33 hour x 1.5 = 64.5 hours
multiply 64.5 x the hourly rate x the # of employees and tighten it up.
Cash is the life blood of your organization. I hope this will assist you in putting YOUR money back into the bank.
Show Me the Money - To learn more about this author, visit Gary Silverman's Website.
Like this article? Share it with your friends
| |||
 |
No article feedback found. | ||
|
Leave Your Feedback | ||
|
|||
 Overcoming Objections @ Home Party Show
| |||
| Overcoming objections at a home party show is simple when you brag about the common objections during the home party show presentation. |
|||
|
Designing your trade show display through your customer's eyes
| |||
| A short article explaining a few tips for maximizing ROI on trade show displays |
|||
|
Let’s hope that the Macworld Expo lives on
| |||
| Apple has bowed out of all upcoming Macworld Conferences & Expos. But let's hope the annual event lives on. |
|||
|
Tips to Succeed at Franchise Expos
| |||
| Expos can offer fertile hunting grounds for franchisors. But there's a considerable investment required in terms of time, money, and effort. Make sure your investment pays off by checking out this list of tips. |
|||
|
Event Marketing
| |||
| Whether it’s a fashion show, a charity ball, or a local community sports show, hosting an event can be a great opportunity for small businesses to gain the visibility they want so badly. It doesn’t matter if ten peo... |
|||
| |||
Bernard ReberBack in late 1992, MS Access hit the streets. About that time the company I managed needed new software to handle their growing client base and I decided to try this new product. I had little difficulty writing and adapting a database to suit us and discovered a hidden talent for programming. A business was born. With business studies and 25 years of management experience in three different countries under my belt, I could offer a unique combination of skills and my customers agreed. From these humble beginnings my software 'invoiceit' emerged in 1999 and has since been taken to 49 states (hello Wyoming, won't you join us?), all across Canada and more than 70 other countries. From the very beginning the program included cashbook accounting, the simplest form of keeping financial business records. The Dictionary.com defines 'cashbook' as "A 'book' in which to record money received and paid out". For 'book' substitute 'simple software' and that's what I'm about. Now I have published Simple Accounting, an inexpensive spreadsheet solution which even you can master. For just $14.95 it costs less than a takeout meal! More at http://www.scrambled-card.com/simple_accounting_main.htm - Visit Bernard Reber's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
 Gary Silverman (Visit Gary's Website) Gary takes a unique and innovative approach to the daily realities of the business world. A contrarian and eternal optimist his spin on life is always entertaining and thought provoking. With over 25 years as a top executive in the Retail Automobile Industry, Gary is no stranger to cyclical businesses. He focuses on simple solutions with proactive change, always looking for opportunities to expand the business within the business. As a trainer and seminar moderator, Gary tailors his message with a common sense approach to problem solving. Always committed to team building and personnel development, he manages with an eye on reducing turnover by creating an environment that builds a bank of promotable employees, believing this is the most effective way to advance a company to the next level. For the past three years Gary has been committed to measuring the “Customer Experience”. There is more to learn from prospects who are NOT buying from you than those who are. His analysis has been an eye opener to his clients which leads to extensive changes in the way they do business.
|  |
 |
|
|
 |
|
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
 |
 | ||
 |
||
 |
||
 |
||
|
| ||
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 |
 Essence of Leaders Ideal Website Template Spring Cleaning Termination Suit Disappearing Leader |
|
 | ||
 |
More PR Resources
Press Release Builder | |
 |
Email The Reporters
Press Release Builder | |
| ||
 |
|
|
|
|
|||||||||||||||
 |
|
|
||||||||||||
