Is your business doing everything for you that you think it should?
Can a good business plan make it work better?
Are you concerned that you are not getting the optimum results from operating your company? Do you want to see better, more consistent performance translating into increased earnings and benefits for you?
Most small businessmen are very good at what they do – they make, market and sell their products and/or services in an extremely strong manner. Unfortunately what most small businessmen lack is an acute sense of the financial aspects of their business and how proper structure and adequate capital resources, and a clear view of how to deploy those resources can greatly enhance their company’s chances of future financial success.
You need to make sure that you utilize the proper resources so that you are properly rewarded for your hard work and risk you take.
Canova Bancorp can give you a new perspective about business. There are well-defined areas to look at in any business and solving the common problems that occur in those areas will help you achieve the ongoing results that you want.
There are always some problems, so what??
Is your business running perfectly? Are you making all of the money that you think you should?
If you have to answer “No” to either of these questions, then you need to seek some solutions in order to preserve the future of your company.
What solutions are available?
Profitability Increasing sales is usually a good idea. Reducing costs is tougher.
Business Processes Information technology is the cornerstone to processes. It should always be on the General Management Help when there are just too many things to do Project Management When contract revenue is the lifeblood of your company.
Accounting Think about a better computerized system – are you getting the right feedback all the time
Consulting That little extra that gives you objective 3rd party feedback for proper planning and decision making
The 80/20 Rule
80% or results come from 20% of resources:
For many businesses that means that:
“80% of sales are made to 20% of customers”
Do you know how much you spend on each type of advertising? Even more importantly, do you know how much profit you get from each of your different types of advertising?
“80% of sales are made from 20% of products”
“80% of costs are allocated to 20% of operations
Allocating costs more appropriately and making each of these areas more productive will go a long way to making your business more efficient and more profitable.
Cutting Costs in your Business
There are usually numerous ways to cut costs in any business. The trick is to determine which of those cuts is warranted and what the end results will be from the cut.
Many cost cuts are unnecessary, at least in the magnitude they are contemplated, and result in squandering other valuable business resources such as personnel productivity.
The Canova Approach to Profitability
Our general approach to improving profitability is to deal upfront with the business owner or the senior management team.
This are the people who have their finger on the cash flow of the business in terms of approving purchases, signing cheques etc. They may not always know is full value is being received for every transaction but because they have full knowledge of the business financial results each month.
You’re the business owner or senior manager; you sign the cheques (or invoices), so you know what your costs are.
You don ‘t always know if you’re getting value, but you have a pretty good idea if you’re wasting money.
There is nothing wrong with cutting costs, and a prime area of analysis is to see if the business costs are in line with industry averages. However increasing sales and revenues is a much more effective way of dealing with lack of profitability…it automatically creates more productivity per expense dollar which improves the efficiency of the business operation.
Canova Bancorp specializes in building customized business plans for companies in Metro Vancouver. In addition, we have worked with businesses all over British Columbia and Alberta, as well as in the Pacific Northwest region of the U.S.