Gary’s incoming year strategies can help you help you turn greater profit (as you increase the likelihood of achieving targeted revenues) while managing risk (by spotlighting formerly invisible pitfalls like looming cash shortages) to help improve your cash flow (CASH will be emperor again this year), in a similar manner as I have also achieved with other organizations.
As I see it (and you may too), the economic downturn has been a transformative game changer, whereby the winners (real survivors) will be those business leaders who will pay attention to tomorrow and thoughtfully pursue the golden opportunities that are waiting to be discovered.
Here are 10 paths to CYA that you can follow in order to achieve a head start on making 2015 a surprisingly great year.
1. Review the 3 best opportunities you could create longer term, and assess in great detail what you need to do to pursue them.
2. Ascertain your company’s 10 top customers not only in revenue but in terms of profitability. Ask yourself what complimentary or add-on products and services you can sell them to balloon your profits.
3. Analyze your staffing levels and determine whether you should staff on a “green field” basis. Ask yourself these questions: “If I were starting a new company, would I hire the same employees I have today? If I were to hire them, would I have them in the positions they are in today?” You may be surprised at your answers!
4. Learn which products are losing money and get rid of them immediately, or raise prices on these products/services.
5. Assess your short-term risk tolerance and develop a contingency plan to stop Murphy’s Law in its tracks — include as much detail as necessary to establish a clear picture in your mind.
6. Examine the 3 top longer-term risk areas of your business today, and focus on how you will respond when those concerns materialize. Since J P Getty, one of the richest people in the world used this approach, it can benefit you too.
7. Evaluate the 3 most crucial infrastructure issues you will face over the next 2 years (key people or skill set needs, financing, or system and process upgrades).
8. Determine the cost of the risks you don’t know, such as potential inventory mismanagement, product defect or service quality problems, and inaccurate or unrealistic financial projection and statements.
9. Evaluate and improve the speed and quality of your cash flow and key metrics monitoring in order to prepare for a fast moving year.
10. Decide where you need an outsider to address the 800 pound gorilla issue everyone knows about, but no one wants to acknowledge.
I look forward to continuing our relationship in the next year and beyond, and also look forward to your success stories by implementing these upcoming year strategies.
Sincerely, Gary Patterson
Million Dollar Blind Spots and Best Practices for Long-Term Business Health
Thought for managing risk during these challenging times: “What is the cost of what you don’t know? $300,000, $1 million, $3 million or more?”
P.S. See and hear the FiscalDoctor now! http://tinyurl.com/ku2bh7
I’m also available to speak on my favorite subject, Avoiding the 3 Biggest Problems in Growing Your Business, so if you know a conference or associations that can benefit from having me speak, I welcome the referral. Or call me at 678-319-4739.