Nov 04 2010

Budget Season

Randy Joy @ 10:00 am

 

As we slide away from autumn into winter, many folks begin spending like mad, stocking up the gifts they’ll be doling out. And then January rolls around, and everyone tightens their budgetary belt, hoping to squeeze the bills they’ve wracked up into manageability.

Yet, budgets should be done before the spending, not afterwards. Yes, hindsight is 20/20, but in budgetary concerns, you have to be eagle-eyed looking toward the future.

So ’tis the season to budget wisely. What changes will be made and what successes will you and your team focus on achieving?  How will you plan for upcoming expenses?

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Category: Cash Flow Maximization,Efficiencies & Cost Saving

Feb 12 2010

Decide on Your Business Goals First

Randy Joy @ 7:28 am

 

Before you start or make any big changes to your business know your business’ goal.  It can be any one of the following:

  1. Cash flow
  2. Salary
  3. Building an Asset/or boosting your Net Worth
  4. Following a dream/doing what you love or using a talent you have

 

Now if you only chose one of the above goals, that is fine and dandy – it is a legtimate goal.  However, here is a secret to know – a  GREAT business is one that contains all the goals listed above. 

Creating and building a great  business helps you reach beyond the business world to achieve your personal goals in life.  Think of your business as eventually being a boat that can sail you away anywhere, to any personal goal you might dream up. 

I can coach you in building the boat, help you with maps and compasses, but eventually, my friend, you will be the one who will have to find out where your heart wants to sail.

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Category: Cash Flow Maximization,Efficiencies & Cost Saving,Strategic Planning

Feb 11 2010

Best and Worst Case Scenario

Randy Joy @ 2:01 pm

In business the term “Best and Worst Case Scenario” is used to decide whether to proceed with an investment.  This might seem complicated, but it is more complicated to jump into an investment without thinking through the various gamut of possibilities opened by that investment. So, take the time, and think out your investment by following the flow of the steps below.

Decide financial goals. 

  1. Short term Cash flow
  2. Long term Cash flow
  3. Long term appreciation
  4. Exit strategy

Schedule benchmarks to ensure you are on the road to success.

  1. Monthly and annual budget to actual reviews based on cash flow projections
  2. Key benchmark timeline
  3. Target customer goals
  4. Revenue expectations
  5. Budget to actual reviews

 Analyze

  1. Explain any major changes or fluctuations from your original financial projections
  2. Revise annual cash flow expectations based on new findings
  3. Document the new changes
  4. Review revised long term financial projections to see if the exit strategy is still valid

 After this analysis is performed, numbers should be used to create short term and long term financial plans. The best and worst case scenario ranges will help in deciding on a conservative plan to achieve all of your goals.  The financial plan will help make sure everyone is on the same page and create a reasonable time frame to achieve your goals.

Businesses routinely use this method with a business plan.  A business plan describes the new business ventures, target customers, key financial goals and long term exit strategy.  A business plan and life plan are essential to ensuring all of your goals are achieved.  And that you know what to expect, no matter which way the wind blows.

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Category: Cash Flow Maximization,Efficiencies & Cost Saving,Strategic Planning

Jan 03 2010

6 Ways to a Healthy Bottom Line – Fast

Randy Joy @ 11:33 pm

1. Cut all discretionary expenses that do not drive the company’s prime 3 missions or goals

2. Review and rethink all fixed costs which no longer are integral revenue drivers for the company

3. Prioritize all outstanding bills.  Pay those vendors first which the business needs to drive revenue

4. Do not cut expenses which will cost the company massive time to transition from if there is a short term cash flow problem

5. Be careful not to cut expenses which create a major obstacle for the company to fulfill its long term vision.

6. Constantly rethink your business model ensuring that it is sustainable in today’s economy and with your industry’s  changes.

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Category: Business Consultant,Efficiencies & Cost Saving

Dec 24 2009

The Secret to Becoming Great

Randy Joy @ 9:52 am

 

 

With growth comes major hurdles to jump.  The saying “no pain no gain” is true.  Businesses must put in hard work to become great.

 

An Olympic athlete must go through strenuous training before they make it to the Olympics.  They must go faster, work harder, and be fully commited to reach new world records.  So, too, in a business.  If you want to build something great, you must work smarter than the competition, learn more, and aim higher.  Olympic athletes are described as having great endurance, stamina, will power and perseverance.  If you want your business to be great you need those same characteristics.

 

The 2010 Winter Olympics will be held in Vancouver.  The whole world will be watching incredible international champions.  Here is what these champions are saying:

 

“Bobsledding is ninety percent work and two percent bobsledding and maybe eight percent fun. Either way, it is a lot of work.” – Bobsledder Steve Holcomb

 

<http://www.nbcolympics.com/news-features/index.html>

 

 

Athletes, put in all that work because the success of winning is sweet. If you want to taste the sweet success in business, then you must get right to work.

 

Category: Clarifying the Vision,Efficiencies & Cost Saving,Joyful Business Model,Strategic Planning

Dec 07 2009

Time Spent Wisely is an Investment

Randy Joy @ 10:37 pm

 

Time is more important than space and money.  Time cannot be bought or replaced.  Every second of our lives is valuable.  And there is no rewind button at all.

Once you put the statement “each moment of your time is precious” into action, other pieces of the puzzle start to fall into place.

You realize looking for your socks every morning is a waste of time.  You realize being late to send your investors financial reports is a waste of time.  You realize sending a product a few days late to a customer because of the chaotic factory is a waste of time.  If time is a factor of money and you want to always present to the world a put-together appearance and a seamless company then smart time management is your goal.

Your desk is loaded, the phone is pitching – what ball will you hit?  Ask yourself, which task on my agenda will I regret most not doing – which one will make me wish I could replay this moment.  Then do that task, so that you have no regrets about wasting an opportune time.

Time well spent and well managed is the best investment you can make for your company.

“The best time to plant a tree was 20 years ago.  The second best time is now.” – Tribal African saying

 

 

Category: Cash Flow Maximization,Clarifying the Vision,Efficiencies & Cost Saving,Optimizing Operations

Nov 17 2009

A Return to Values and Gratitude

Randy Joy @ 6:54 am

Our difficult economic times have been compared to the Great Depression.

The era of the great depression followed the roaring 1920s. The roaring 1920s represented wealth, excess, joy and color.  The great depression on the other hand, represented darkness, despair and the return to the ‘value’ of the dollar.  I remember hearing stories from my great uncle about that dark time.  Food and jobs were scarce.

However, the kids on the street were grateful to play stick ball on the streets with their friends.  They were grateful for the food their parents served them.  They were grateful for the running water and heat.  They valued their families and what they had.

In comparison, from the 1980s until today has been a time of growth, wealth accumulation and excess.  The fast rise in home prices has seen the unprecedented rise in wealth across the country.  As the ball started to drop in 2007, home values began to plummet and people saw large falls in their wealth.  The recession quickly brought with it mass losses of jobs, stock value and economic distress just like in the Great Depression.

Now, too, we value the dollar.  For each dollar is important.  Each time we serve our family a meal it has value.  Each moment we step into the office we are grateful to still have a job.  Each moment we greet our staff we are grateful to still be privileged to afford our employees.  Each time we serve our customers we are grateful they are still with us.

The return to gratitude and values is the precious outcome of our difficult economic times.  Our current attitude will define our success.  As success is not what we have in our bank account but rather our relationship and attitude to that bank account and the other most precious gifts in our lives.  I am extremely grateful for what I have.

Pass it on.

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Category: Cash Flow Maximization,Efficiencies & Cost Saving,Strategic Planning

Aug 19 2009

7 Aggressive Cost Saving Measures for this Economy

Randy Joy @ 11:08 pm

1) Use this economic crunch time to revisit your business plan.  Ensure your business is on track with your vision, values and cash flow projections. Any gap, whether intended or not, should be acknowledged and you, as the owner, should make an active choice how to proceed.

2) Get organized. Know where your business is spending its money and where it is not. Get control of your bills, vendor pricing, and financials.

3) Stop doing anything that is not working. Stop paying bills late. Stop worrying about meeting payroll and start creating long term solutions and making tough decisions to finally solve the problem.

4) Get out of the office into an inspiring place to do this exercise.

   a. Analyze your top 3 expenses. You are smart– figure out a way to cut 10% off your top 3 expenses.

   b. Analyze your bottom 3 expenses. Can they be completely eliminated?

5) Highlight whatever is working well in your business. These items should be a model for every facet of the rest of your business. Replicate it.

6) Do not wait for a financial crisis to force you to call all your vendors. Keep in contact with your vendors, banker and creditors.

7) Keep your business’ credit clean no matter what. Quitting is not an option. You will figure it out.

Quote: “Have strong beliefs. Know why you are doing what you are doing. Figure out what’s right and do it.” NY Mayor Guilliani

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Category: Efficiencies & Cost Saving