The Alternative Board - East Valley

ASSESS YOUR BUSINESS

The most iportant thing a company can do to move forward is to have an assessment of the business. It is impertive to do this before any business plan is made, if you want your plan to work.  We have a very effective and detailed assessment tool at the Alernative Board called TAB Business Vantage.  However, to get you started here are some questions which must be answered by the decision makers and key employees. 

1.  WHAT IS THE COMPANY VISION?  I will bet that 9 out of 10 employees have no clue.  The Company Vision is the driving force in the company.  It says why you are in business, and must be the basis of doing everything from hiring empolyees that fit the culture to setting goals and strategies.

2.  WHAT ARE YOUR COMPANY'S STRENGTHS? Make sure you are not giving the same answer as your competitor.  Why are companies doing business with you?  What do your employees think?

3.  WHAT ARE YOUR COMPANY'S WEAKNESSES?  Sometimes this is hard to admit.  Again look at your competitors and consider what they do better than you.  Be honest and ask your customers if you do not know  This is another good question to get your empolyees thoughts.

4.  WHAT OPPORTUITIES EXIST FOR IMPROVEMENT?   

5.  WHAT THREATS CAN INHIBIT YOUR COMPANY'S FUTURE?  Examples are health of the owner, market conditions, and cash that you cannot control.

6.  HOW EFFECTIVE IS YOUR SALES DEPARTMENT AND HOW CAN IT BE IMPROVED?

7.  HOW EFFECTIVE IS YOUR MARKETING, AND CAN IT BE IMPROVED AND MEASURED?

8.  DO YOU HAVE A FINANCIAL SYSTEM AND KEY PRODUCT INDICATORS (KPI'S) THAT ALLOWS YOU TO QUICKLY MANAGE CASH AND MANAGE YOUR OPERATIONS?

9.  IS YOUR COMPUTER TECHNOLOGY UP-TO-DATE?  Or are you so up-to-date that you spend too much time here when you can be doing something else to add to the bigger picture.

10.  WHAT IS THE ONE CRITICAL SUCCESS FACTOR YOU NEED OT DRIVE YOUR BUSINESS FORWARD?  There are many things that need to be done, but focus on the ONE thing that will drive your business.  You maybe surprise on how your business improves.

If you are interested in hearing more, and want  a 1 hour free consult to hear more, please do not hesitate to contact me.  allanh@tab-eastvalley.com or 480-656-3565. 

SIMPLIFIED CASH MANAGEMENT

There was an interesting post on the TAB Hotline about how upset business owners are with their accountants. CPA’s abilities are to look at the past and they do a fantastic job on your taxes. Accountants are NOT trained to be CFOs, and manage cash. This is just a small area where the Alternative Board can help. Seeing how other business owners manages their cash and holding each other accountable in the process is a beautiful thing to watch. We are working together to develop a simplified cash management system. Instead of staring at a Profit and Loss Statement, let’s try and be pro-active and project out the next 6 months. Do not think that Sales will cure all ills. That is probably what has gotten most companies in difficulties. One must take a look at the whole picture on a regular and consistent basis. To save money we arbitrarily cut employees, marketing, and sales efforts. Get out your Excel spreadsheets and try entering the following: Sales, Cost of Goods (include variable costs like sales commissions, overtime, etc.), Gross Profit, Gross Profit Percent, Expenses (Make sure to deduct the variable costs mentioned above), Extraordinary Expense, Net Income, Cash on Hand,Start from your fiscal year, and put in month to month numbers. Now put in all your projections for the rest of the year, and see where you need correction. Now your only problem is finding someone to hold you accountable and help you move forward. So join one of my Boards. If not find some advisors that have no agendas to please you, and ask for their help. Believe me it will be the best 4 hours a month, you will spend looking at your business rather then working in your business.