Do Business Well

13. Eliminate unnecessary partitions

Factories and offices, particularly old ones, often have too many nooks and crannies, cubby holes and partitions. The more of these there are, the less visibility there is of personnel, stocks, machinery and production in general. Partitions and walls take up too much space.

14. Re-allocate space per department/function to save money

Work carried out by separate departments could be merged following physical re-allocation of work areas. For example, a combined despatch/goods inwards department could be less costly.

15. Dispose of obsolete items

Storing obsolete items in the stores and on the shop floor takes up costly factory and warehouse area. Continue Reading »

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Income statement. You’ll want to produce one every month. Your business can be in big trouble for a long time and you won’t even know it without an income statement. We have fully detailed the income statement in section 2, part 6.

Inventory. This is the value of all merchandise that you carry for resale. It does not include office furniture, production equipment, or other items that aren’t being offered for sale. As mentioned above, there are some very sophisticated aspects to placing a value on that inventory. Continue Reading »

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ASSET VALUE

For most companies the asset value should represent the lowest amount below which the owner might just as well liquidate. There are only two differences between asset value and liquidation value. In calculating asset value you don’t have the costs of liquidation and you can be more generous in appraising certain assets than you might be if you had to liquidate.

INDUSTRY STANDARD VALUE

It’s common in many industries to have a valuation method. Travel agencies are generally valued at ten times annual commission. Manufacturers’ reps, on the other hand, are generally only worth one year’s commission. Magazines use a certain number of dollars per subscriber. Manufacturers might expect to get between two and ten times annual earnings. Continue Reading »

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Many inexperienced entrepreneurs expect too much from marketing in too short a time, e.g. they place one small advertisement in the paper or they distribute one leaflet and they expect immediate and significant increases in sales. When the results do not materialize, they lose faith. Remember, perseverance conquers all. The right marketing campaign is consistent communication directed in the right media at the right price to the right people at the right level over a sustained period of time.

From our experience, we have often found that entrepreneurs have not developed a marketing culture in the company because they don’t know how and don’t want to admit it. So here are six simple steps to follow when building an effective marketing plan:

Step 1: Establish your marketing budget

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I don’t know your financial situation or what you dream of doing in your future. But if you’re like most teenagers, you have a specific high-dollar dream in your immediate future, whether it’s a car, a college education, or even a three-month overseas mission trip after you graduate from high school. Whatever your next big financial goal, this four-step strategy can help you reach it.

1. GO FOR GROWTH

Your number one investment goal is to make your money grow. Right now you have few expenses compared to your income. But soon you’ll be paying for cars, education, furniture, entertainment, clothes, food, housing, medical expenses, and a thousand other things that someday will obliterate your paycheck. Make the right investments now, and your money will grow substantially until you really need it. Continue Reading »

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