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Client Services & Tax Resolution Specialist |
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Cathy Glenn
708-691-5633
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Dear
Raymond J. Busch CPA, has been helping local small business with all their accounting and tax needs for over 35 years. Our clients are always helped in a fast, friendly, and accurate service. |
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How to Profit in Uncertain Times- 9 Steps to Success |
During uncertain times, both nationally and locally, small businesses need to manage their business in a more progressive way. Since 1945, the average recession has lasted only 10 months. I have seen companies grow and increase profits during the last three recessions. In Addition, many companies take this opportunity to position themselves for greatness after the recession ends.
The following steps are good fundamental business practices which can be used to improve performance during turbulent economic conditions as well as in strong economic times.
1. Take Control of Cash
When a company is hurting, cash is the lifeblood. Collect all accounts receivables, be careful granting credit to new customers, monitor all purchases, and pay only those items which will literally keep the doors open. Cash is King!
2. Know Your Costs
Understand how much each product or service line actually costs. Don't sell products or services you lose money on. Having this information will allow you to focus on the more stable and profitable areas.
3. Produce Accurate Financial Information
Businesses that produce accurate financial statements within 20 days of each month and weekly flash reports have the tools to better manage their business. This information allows you to head off a crisis, better manage your cash, and give you the information to prevent losses.
4. Listen
Gather as much data as possible by talking with employees, customers, future customers and people in the same or similar industry. Use this information to chart a better and more profit driven future.
5. Planning, Goal Setting, Focus
Now that you have gathered your data, it is time to formulate a strategic plan toward success. Always keep in mind that both employees and customers look to you for leadership. Customers buy leadership, confidence and creativity. It is up to you to provide it. Set 3 year, 1year, 90 day and weekly goals; updating them quarterly. It is extremely important to stay focused on cash flow while constantly maintaining a secure cash reserve. It is paramount never to compromise quality for price an always create value. Be firm and fair!
6. Right Size
Eliminate all waste. The three biggest costs in a business, other than product cost are; people, facility and equipment. You must position these costs to make a profit and the current level of sales. You must also make sure you have the right people in the right position working for the company. Become Learn and Mean!
7. Raise New Cash
New cash can give a company a big advantage, enabling increased marketing and sales efforts, finalizing new orders and facilitating efficiency. However, you only want to raise external cash if you are 100% sure you will be able to make a profit.
8. Positive Attitude and Marketing
You must be enthusiastic, determined, and committed, in order for positive change to happen. A positive attitude is contagious and some spreads to other workers and customers. Forget about losses, focus on your opportunities! Have weekly meetings with your staff to discuss the GEC principle. Growth, Efficiency, Customer Service!
9. New Business
In down times, your competition may be reducing their efforts in marketing, advertising, and sales. Additionally, they may be reducing customer service. This is a perfect time for you to step up these endeavors. Your energy should be directed at obtaining qualified customers positioning you for present and future growth. Use Value Pricing! |
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We want to help take your business to where you want to be.
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Sincerely,
Cathy Glenn
Cathy Glenn
Raymond J. Busch, Ltd CPA |
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