Business Briefs: 5 ways to cut costs and improve cash flow

When business owners start to feel the choking effect of a slow cash flow, they often blame their customers. “Why aren’t we getting paid on time?!” But it’s important to remember that cash flow is affected by a variety of elements. For example: Operating expenses and...

Let’s Get Back to Basics – Do You Have a Sound Exit Strategy?

The overriding theme presented is what companies should be doing in order to improve profitability within their operations.  The concept involves having a well-defined process in place that focuses on best practices, team building, and accountability.  This process...

Two Key Ratios

Value added and the Productivity Index Value added is defined as net sales less material and incoming freight costs.  In the case of non-manufacturing companies, value added is the same as gross profit.  The value added amount covers all other costs incurred by a...

Management Co-Sourcing

The business environment has changed and because of staff reductions and smaller budgets, businesses are forced to accomplish more with fewer resources.  Co-Sourcing, a business practice in which some portions of a function are performed internally by an organization...

Open Book Management

Two heads are better than one.  This expression has been around for a long time, and while most would embrace the concept in theory, not all utilize it in their everyday business practices.  This concept has relevance when a company positions itself as either an open...

Managing Cash Flow

Managing cash flow is extremely important in any business, a lack of cash flow often means the end is near. In a good economy, typically, sales are high which increases both accounts payable and inventory levels.  Higher sales lead to an increase in accounts...