You Need To Do This:
MONITOR
YOUR BUSINESS
The "GEARS" must "MESH" in order for things to work smoothly.
To make your business work like well-greased GEARS you must have and use
"TOOLS" -- which are based on a life-time of experience ....
You may avail yourself of the "TOOLS" and you will learn how:
In this web-site, we cover one of the (tools) that one can utilize whether it be for
PERSONAL .... or for ... BUSINESS needs.
Let's begin with the BUSINESS
category MONITORING. This is a
critical consideration whether you are in business, or considering going into business.
It will be applicable if you
are experiencing success and growth and may wish to expand, or in the case of poor
cash flow and the ensuing problems.
Then "MONITORING" becomes critical for existence and success !
Don't fight the uphill battle 
learn what to Do !
Yes, we offer what you will need !
Let's make it VERY CLEAR, that, if you are in business (or going to start a business),
then it is mandatory .. to know, in detail
WHAT TO DO -- WHY YOU NEED TO DO IT -- HOW TO DO IT !
You may be a new START-UP.... or an EXISTING business, and particularly
if you
have begun to have "SITUATIONS".... or you may want to expand.....
You have to know whether to divulge "all things" to
lawyers, accountants,
insurance people ???
These can be your "making or undoing" ....... Watch It.
YOU WILL NEED TO "KNOW"
Better get some or all of the articles in WHAT WHY HOW
Starting to get interesting 
let' continue and LEARN
CONTENTS ...
(for now = this is a partial listing of the ARTICLES and TITLES)
A = The ENTREPRENUER and MARKETING
B = MONITOR --This covers what you MUST KNOW ... (to stay in control of your business).
We're intentionally giving you (here) the "MONITOR" information ... as an
example of the
depth of content and what sort of information
you receive in each of our listed articles.
Notice please the details... only proven performance and experience can give you this !
TO STAY IN CONTROL -- 
you must use ... DILIGENCE
And ..... You have to know what you must MONITOR to gain SUCCESS!
Managers know the problems of battleling the daily barrage of hourly operating data that assaults the mind. The realization that you can't track every detail of your business will come in due time. But you can be sure -- it will become "reality".
Delegate selected functions to SOMEONE you feel can and will "perform".
Can
you depend on that individual to "follow through" over a period of time ?
If you don't depend on that individual to follow through, you will be "SECOND GUESSING".
YOU will not SAVE TIME – as you thought you would. YOU will still BE INVOLVED (TOO MUCH). …. The message here is: ... although you have "delegated", ... you need to check often to see that the individual is doing the job as required and feeds you the data (etc) as needed.
AN INTERNAL MONITORING SYSTEM IS WHAT YOU NEED. This has to be COMPREHENSIVE and TAILORED to give NEEDED and DESIRED RESULTS.
PROPERLY ORGANIZED, this enables you to compare CURRENT FIGURES with
PROJECTIONS.
YOU WILL BE ABLE to compare and concentrate on more important BENCHMARKS ---
Such as ... CURRENT FIGURES ... vs ... PROJECTED FIGURES .. (where you want to be).
SOME THINGS YOU SHOULD "MONITOR:
SALES:
Check sales (often called = revenue) ... DAILY.....
Do this so that you at least know the volume of business your
company is booking, but at least weekly, check not only volume but
where the sales are coming from.
Get your system to supply YOU the information you want and need.
You will be able to understand what your company is doing and you
will spot slow-downs as well as sales growth.
It is also good for you to know how your sales were in
past periods (months, quarters and semi-annual figures).
This will make it easier for you to compare and make faster, more
informed decisions.
SET IT UP TO GET SUCH INFORMATION AT DESIRED TIMES.
REVIEW SALES FOR EACH: ......
PRODUCT and SERVICE.
If you have the proper working arrangement (and you certainly should have a good
one)
with your CPA .... be sure they submit figures as explained above ... (these
will come from the
method your books are kept and the records you feed to the CPA) ...
You must run your business based on having information NOW ... FAST ... and that the major
functions
and the way a CPA presents "figures" ... is basically based on what the BANKERS
WANT....
That's what you are given from the CPA ... that's what you are supposed to run your
business by and
what you "see" ... (what they give you). This is in reality
the PAST.... you need information so you
can re-act to things ... Now !!!
(Much more to come on this subject = super important for the merchant to succeed).
Learn
to calculate the ... RATIO of GROSS PROFIT to NET SALES ... (REVENUES):
Looking
only at SALES FIGURES and not EXAMINING COSTS, will have you IN DEEP
TROUBLE.
This refers to the
DIFFERENCE between REVENUE (SALES) and your COSTS to PRODUCE THAT REVENUE.
It's a good idea to EXPRESS
THIS AS A PERCENTAGE OF THE SELLING PRICE. The RESULT is that it will
enable you to Guide your
business for success.
On a weekly basis: ..... LOOK AT GROSS PROFIT RATIOS FOR THE TOTAL
BUSINESS ....
This is .... FOR EACH
DIVISION and / or SERVICE CATEGORY
Also do this for
INDIVIDUAL EXPENSE ITEMS. Only when the RATIO IS "OFF", should
you want to
DIG DEEPER TO FIND AND CORRECT THE
PROBLEM.
DIRECT EXPENSES:
REVIEW THESE ONCE A MONTH FOR ALL AREAS OF THE COMPANY OPERATIONS. THE LARGER AND MORE
DISCRETIONARY THE INDIVIDUAL ITEM, THE MORE IT SHOULD BE SCRUTINIZED. (SUCH AS: TRAVEL AND
ENTERTAINMENT EXPENSES.)
POINT OUT THAT GROSS PROFIT IS AFFECTED BY EVERY TRAVEL AND ENTERTAINMENT DOLLAR SPENT. PROFIT IS
REDUCED BY T & E EXPENSES.
SET YOURSELF UP A "FLAG AMOUNT" (SAY $ 2000 PER MONTH) FOR ANY EXPENSE ITEM AND IF THIS IS EXCEEDED,
CHECK INTO "WHY?"
AT THE END OF THE EXPENSE SCHEDULE, YOU OFTEN SEE "OTHER"... THIS IS A VAGUE CATEGORY WHICH OFTEN IS
LARGER THAN OTHER EXPENSE ITEMS. THIS IS LIKE "FLYING BLIND". INSIST ON A BREAKDOWN OF THE "OTHER"
CATEGORY THAT EXPLAINS ALL ITEMS OF $ 100 OR MORE.
OTHER INCOME AND EXPENSES:
TRACK THIS "HAZY" CATEGORY AT LEAST MONTHLY-- (PREFERABLY WEEKLY).
THIS IS WHERE ITEMS LIKE INTEREST PAYMENTS AND SIMILAR NON OPERATIONAL FACTORS ARE SHOWN. AS
INTEREST RATES INCREASE, THIS INCOME STATEMENT ITEM BECOMES MORE IMPORTANT. IT MUST BE
WATCHED!
NET PROFIT:
CHECK THIS MONTHLY. IT IS ALWAYS AN EXCITING FIGURE TO LOOK AT, BUT BY THE TIME YOU’VE REACHED IT,
YOU SHOULD ALREADY HAVE A PRETTY CLEAR PICTURE OF WHETHER NET PROFIT IS GOING TO BE HIGHER OR
LOWER THAN PLANNED, AND WHY.
IF NET PROFIT IS NOT WHERE YOU EXPECT IT TO BE, GO OVER THE OTHER MONITORING STEPS TO DISCOVER WHY
IT IS OFF TRACK.
CASH FLOW:
A POSITIVE CASH FLOW IS VITAL.
A PROFITABLE COMPANY CAN FAIL RAPIDLY IF IT DOESN’T KEEP GENERATING ENOUGH CASH FLOW TO PAY ITS
SUPPLIERS.
BANKS BECOME RELUCTANT TO EXTEND LINES OF CREDIT IF THERE ISN’T ENOUGH CASH TO KEEP THE BUSINESS
GOING.
MORE BANK CREDIT REDUCES PROFITABILITY BECAUSE OF INCREASED INTEREST PAYMENTS.
MONITOR CASH FLOW EVERY WEEK SO YOU CAN BE SURE YOU ARE STAYING AHEAD OF THE GAME.
ACCOUNTS RECEIVABLE:
IT IS EASY TO LET ACCOUNTS RECEIVABLE PILE UP. YOU MAY FEEL THAT IT IS TOO EXPENSIVE TO GO AFTER
TARDY ACCOUNTS.
IF YOU ARE OVERLY DEPENDENT ON A PARTICULAR ACCOUNT, YOU TEND TO "LET IT RIDE" LONGER THAN
NORMAL.
REVIEW AT LEAST MONTHLY (PREFERABLY MORE OFTEN IF CASH FLOW IS SLOWING UP). COLLECTION OF
ACCOUNTS RECEIVABLE IS A VERY IMPORTANT FUNCTION AND EVERY EMPLOYEE INVOLVED IN THIS
DEPARTMENT MUST BE EFFICIENT AND VIGILANT.
TRUE, YOU MUST CREATE THE SALE (REVENUE), BUT IF YOU DO NOT GET PAID ON A TIMELY BASIS, THE COMPANY
WILL FAIL.
INVENTORY:
IN MOST BUSINESSES THIS IS A VERY IMPORTANT CATEGORY.
IT IS EASY TO MISJUDGE THE MARKET AND TO OVERBUY. INVENTORY SHOULD BE CHECKED EVERY WEEK AND
EVERY MONTH FOR LEVELS OF INVENTORY AND FOR WHAT THE INVENTORY CONSISTS OF.
THIS SHOULD BE DONE AGAINST PROJECTIONS OF HOW MUCH INVENTORY YOU NEED TO SUPPORT AVERAGE
ESTIMATED SALES (REVENUES).
PROJECTIONS OF INVENTORY LEVELS DEPEND IN PART ON ANSWERS TO QUESTIONS SUCH AS:
"HOW FAST CAN WE GET SUPPLIES // MATERIAL? ARE COSTS RISING OR FALLING?"
ALSO, YOU NEED TO BE VIGILANT TO KEEP INVENTORY CURRENT AND SALEABLE.
IN MEDICAL -- (HOME CARE) --SITUATIONS WITH THE EXCEPTION OF THE SUPPLIES NEEDED TO RENDER THE
SERVICES, YOUR MOST IMPORTANT CONCERN IS WITH "HOW MANY CALLS CAN WE MAKE?" ( THIS IS LIKE
MAKING "SALES")
YOU MUST DEVELOP "SALES" BY THE "CALLS" THE PERSONNEL MAKE.
YOUR "INVENTORY" IS IN HAVING GOOD PEOPLE TO MAKE CALLS. THIS IS LIKE HAVING INVENTORY TO SELL --
WHICH BECOMES ACCOUNTS RECEIVABLE, WHICH BECOMES CASH RECEIPTS AND LEADS TO PROFIT.
RESEARCH AND DEVELOPMENT:
RESEARCHING INTO THE COMPANY FINANCIALS, GETTING RATIOS AS WARRANTED, SCRUTINIZING EXPENSES,
SALES (REVENUES), COSTS, DAYS TO COLLECT, INTEREST COSTS FOR LOANS (PARTICULARLY FOR "SHORT TERM
LOANS").
RESEARCH AS APPLICABLE TO PERSONNEL:
ATTITUDE, WILLINGNESS TO COOPERATE, COURTESY, VOCABULARY-LANGUAGE, RELATIONSHIPS WITH CLIENTS
AND LOYALTY TO THE COMPANY.
IF THIS RESEARCH SHOWS NO WARNING SIGNALS, STOP LOOKING. OTHERWISE, START TO "DIG".
RESEARCH APPLIES ALSO TO DEVELOPMENT OF MORE SALES (REVENUES).
SPECIAL NOTE:
THIS SELECTIVE PULSE-TAKING PERMITS THOSE IN MANAGEMENT TO FOCUS ON THE BIGGER THINGS INVOLVING
THE GOOD OF THE COMPANY.
IT PERMITS DELEGATION OF DUTIES TO OTHERS (WHO MUST PERFORM THOSE DUTIES FOR WHICH THEY HAVE
NOW BEEN MADE RESPONSIBLE).
THERE HAVE TO BE COMPANY "GUIDELINES".
THIS ENCOMPASSES THE "DO’S AND DON’TS" FOR PERSONNEL TO OPERATE BY FOR THE GOOD OF THE COMPANY
AND THE ENTIRE EMPLOYEE GROUP, COMBINED.
WHEN CORPORATE AS WELL AS DEPARTMENTAL GUIDELINES, FORMS, FORMATS, ETC. ARE ESTABLISHED, TOP
MANAGEMENT CAN EXPECT EACH DEPARTMENT MANAGER TO MAKE APPROPRIATE REPORTS IN A TIMELY
MANNER.
IN THE SAME WAY, EVERY MEMBER OF A DEPARTMENT, MUST ADHERE TO THE RULES AND THE
RESPONSIBILITIES EACH HAS FOR THE GOOD OF THE DEPARTMENT AND THE COMPANY.
ABOVE ALL IT IS ........... ATTITUDE !!
SHOW TO OTHERS THE ATTITUDE YOU EXPECT TO RECEIVE FROM THEM.
IT WORKS !
By: "amicos"
Have you begun to "SEE"why this is so important ?
(interim "stop" .... will be back ... to continue)
B-1 = A GOOD MANAGER adds PROFIT to the BOTTOM LINE
C = THE BUSINESS PLAN -- (an OPERATING PLAN)
C-1 = COUNSEL // ADVICE and the FINANCE SERIES
C-2 = UP-DATING THE BUSINESS PLAN.. (an ongoing duty)
D = PROPOSAL FOR A LOAN (there is a "right way" to do this)
* WHAT the BANK and the LOAN OFFICER WANT TO KNOW
* WHERE to FIND FUNDS to FINANCE a BUSINESS
E=DEVELOPING THE "BREAK EVEN POINT" ... this is function to run your business ..
......it has to be your "MUST DO THIS !
F=BUSINESS RATIOS AND "HOW THEY WORK"
MUCH MORE TO COME.... THIS IS MERELY A START...