The Litmus Test - do you need to look further?

Do you have to selectively pay Creditors?

 Yes No Dont Understand

Are a high proportion of debtors beyond your Terms of Trade?

 Yes No Dont Understand

Is your Bank Manager on your phone favourites list?

 Yes No Dont Understand

Yes to these is a ‘Red Flag’, a definite, still continue even if you answered No you will be amazed at what you will discover. These are easy to achieve

Financials – Are you on the right track

Are all of your financials up to date?

 Yes No Dont Understand

Do you understand and use your financial ratios

 Yes No Dont Understand

Do you reconcile your bank account at least monthly?

 Yes No Dont Understand

Cashflow – Cash is King, but only when you have control of it.

Do you invoice as soon as work is completed or at least monthly?

 Yes No Dont Understand

Do you prepare 12 month cashflow budget projections?

 Yes No Dont Understand

Do you compare actual to budget each month?

 Yes No Dont Understand

Breakeven Point – You MUST know what it costs to do business

Do you know the breakeven point for your business?

 Yes No Dont Understand

Have you broken it down for each product line or service?

 Yes No Dont Understand

Do you use this to price and negotiate contracts?

 Yes No Dont Understand

Debtors and Creditors – keep both under control

Do you know your Debtor and Creditor days?

 Yes No Dont Understand

Do you keep a record of your Debtors and Creditors updated daily?

 Yes No Dont Understand

Have all customers signed off on your Terms of Trade and Collection policy?

 Yes No Dont Understand

Systems and Processes – get the product/service to the market without delay.

Do you know where workflow holdups or downtime occur in the business?

 Yes No Dont Understand

Do you review all systems and processes for ‘wastage’ of time, money and resources?

 Yes No Dont Understand

Do you review overheads and expenditure in detail regularly especially blowouts?

 Yes No Dont Understand

Customers – Ideal customers are the most profitable and easiest to sell to!!

Do you know your profitability by Customer and sales activity?

 Yes No Dont Understand

Do you use previous sales activity to estimate future inventory/capability requirements and take the opportunity to confirm with customers/clients?

 Yes No Dont Understand

Do you record and follow up on complaints/problems promptly?

 Yes No Dont Understand

Staff – Make sure everybody is going in the same direction!

Do all staff have Position Descriptions?

 Yes No Dont Understand

Does your business have regular staff meetings and encourages free flow of information?

 Yes No Dont Understand

Do you have a usage/fraud policy that all staff know and understand?

 Yes No Dont Understand