BTACT – Woodland Hills Quickbooks Enterprise, Pro Consulting & Training

Being from Los Angeles (originally Iowa, but in LA for a long time now), I will always remember Pat Riley, former head coach of the LA Lakers.  He was always the cool guy.  In a bad year, he was saying routinely, “We have to get back to basics…like dribbling, passing, and shooting.”

Well, we are in bad times now and we all need to get back to basics.  Take a look at your business and see what has been making your money.  Then take a look at what has not been making you money.

This will generally require more than just reading a financial statement from your accountant.  It will probably mean digging into that next level down.

• Which customers did the best for you, not in just sales, but gross profit margin.
• Which vendors provided you the best service with the best terms.
• Which employees worked the smartest for you and the company

This is generally not a one-time request.  After you sort through this information, then you may think about when you should be asking for it again and have your accounting/management information system set up to give this to you.

So now that you know which customers, vendor and employees are the best, what do you do about it?

• Customers – work hard to keep this type of customer and work to develop other customers into this type of “best” customer.  If you find some customers don’t make the required Gross Profit, then you need to get them up to your requirement or terminate them.
• Vendors – now that you have developed your standard for a good supplier/vendor, you need to get the other vendors up to your level or find new ones.
• Employees – keep the good ones and find replacements for anyone not making the mark.  Unfortunately, businesses are going to have to make hard decisions in these times.

Back to basics: customers, vendors, employees.

If you need some help with this for your business, give us a call.  We have been helping clients over hurdles for years.

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