“Removing Roadblocks on Your Path to Success”
Are You Getting the Most Out of Your Business?
Managing your finance function in today’s environment is more critical than ever. Like a game of chess, you need to think several moves ahead and understand your vulnerabilities, strengths and opportunities. Competing means establishing benchmarks and standards to ass the performance of the financial aspects of your organization.
Benchmarks enable you to gauge the efficiency of your processes, determine low-margin customers, and can even help you determine if you have the right systems in place to meet goals. Implementing the proper systems and key performance indicators can help you utilize the benchmarks to exceed profitability and growth targets. Businesses can benchmark their performance and determine which processes are not cost-effective for a business.
For example, according to a study conducted by accountingweb.com almost 50% of businesses are outsourcing their payroll? This steadily increasing number reflects what most businesses are learning after benchmarking — that managing payroll manually is a strain on resources and money, and implementing a system dramatically helps to increase efficiency and lower costs. There are several other ways that you can benchmark to improve your business operations. Make sure to check out our blog post “Using Business Benchmarking to Improve Performance.”
And to properly leverage benchmarking, you’ll need to establish goals and key performance indicators to know exactly where you need to improve. I’m sure you’ve heard people go on and on about the importance of key performance indicators, but they really can’t be overlooked. In the case of Blue Frog, a $5 million contract screen printing and embroidery company, they were a consistency growing company until they had more than 90 people on the payroll. Despite an increase in profits, Blue Frog was having difficulty with regular cash flow for payroll and other expenses.
By using benchmarks and key performance indicators, Blue Frog was able to actually quadruple its profits and solve its cash flow problems! You can read the full case study here, and the big take away is to start benchmarking and establishing your KPI’s now. They may be the key to unlocking new growth and profitability.
If you’d like to learn more about how to create a culture of growth and success for your business, we’ll be co-hosting an event with MAP consulting on Thursday, November 6th. This 2-hour session will help you determine the vital factors for your business and how to align your organization around these common metrics and goals to create a new level of accountability across your organization. You’ll learn to identify the right players on your team and more, while learning how to use systems to improve productivity and bottom-line profitability. Make sure to check out the invitation here and RSVP today by emailing firstname.lastname@example.org.
Until next month, we wish you the very best and much success in your business.
March 2011 Newsletter
This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.
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