Create realistic, but precise goals that include deadlines in a formalized strategic and operational business plan.
Include employees and consult the business plan on a regular basis.
Inadequate financial records:
Keeping track of how much money is on hand and how much is owed in order to understand the financial picture.
Maintaining detailed books and an appropriate record of sales and business is necessary. Keep records current
Disregard for or misinterpretation financial records:
Improper funding and failure to oversee debtors and creditors are examples of disregard or misinterpretation of
records. Keep control of payables and receivables. A business could experience a profitable year and have solid
accounts receivable on the books, but be cash poor due to lack of control.
Failure to control costs:
Build an information system that tracks cost embedded in each business function or process to control costs.
The system should track actual time expended so that labor costs can be controlled while providing incentives
Lack of internal control:
Personally take the responsibility to decrease fraud by putting controls in place to prevent a diversion of funds,
inventory or property.
Poor sales and customer relations:
Talk with your customers about their focus and interests. The extra effort to increase customer service and sales
will set your company apart from competitors and increase sales.
Insufficient working capital:
Although some businesses might be able to survive for a short time with a small amount of capital, eventually the
money runs out. Initial development of a business is crucial and should be supported with a financial cushion.
to maintain a financial safety net.
Lack of adequate and appropriate insurance:
Families dependent on income generated from their business should carry long-term disability insurance. Additionally,
adequate life insurance protects owners and families from financial hardship. A disaster, such as a flood or fire, can
destroy a business. Inventory and assets must be insured.
Failure to adequately train and develop employees:
Create a team work environment that keeps staff motivated and happy. Employee involvement in the business, training
and increased education promotes a feeling of ownership.
|EHPOWERRS Management Services Inc.
2273 McCoy Road; Suite B
Sun Prairie, WI 53590
Office: 608.295-8537 | Fax: 608.531-2604
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