Keeping the cash flowing

Keeping the Cash Flowing

IT’S TOUGH OUT THERE in retailing You read the papers, you walk through the shopping malls, and retailers are closing up or being bought out. It’s been a long time since retailing was so tough. Having personally gone through the extreme highs and the lows in retail, I can now comment on why I feel a lot of retailers are going through hard times.

Whether you are a start-up, small business or a multi-national, cash flow is imperative to business survival. Retailers have gone through a stop-start love affair with cash flow management, by putting out fires when they arise, rather than implementing some simple management tools.

To understand how to manage cash flow, you must fully understand what its components are:

Pay accounts slower — Your suppliers that you have good relationships with should give you some leeway with time frames to pay your accounts. Sometimes we chase the discount that is given for early payments on accounts, but should ask ourselves if that discount will make a major impact to the bottom line.

Remember — don’t mistake profit (the money that you make after you have paid for everything) with cash flow (the money that pays the running and growth of the business).

Reduce inventory — Retailers are generally very good at doing this. But rather than slashing prices, have a look at some other alternatives such as: setting open-to-buy budgets; standardising layouts across stores that maximise sales in core departments; reviewing/implementing a replenishment program; concession arrangements with suppliers; and returning stock that has not sold and replacing it with faster moving lines.

Collect accounts receivable — Because most retailers don’t have large accounts outstanding, this really applies to those who have a corporate section of their business. If you are a retailer that has account systems in place, look at ways to reduce the terms of the account from 30 days down to 14 days, or take deposits.

Reduce costs of goods — Internally this would be your processing in which you receive, store, and distribute stock. When dealing with suppliers, organise strong trading terms, which gives you more margin in the backend for rebates, co-op advertising and return-to-supplier programs.

Increase prices — «You’re insane, you can’t increase prices, we’ll get murdered out there.» Yes, retail is competitive, and the majors have pushed everyone into discounting mode to increase sales. But without freaking you out, have a look at the stock on the floor, and determine which items you have that experience high levels of competition (and keep these prices competitive), and review the items which have little or no competition (and increase the prices of these products).

Stopping the leaks

In understanding what makes up cash flow, retailers should put in strategies to ensure that they maximise their cash position at all times. Here are some simple strategies that can be implemented in your retail business.

Measure stock turns — This is the cost of sales times the cost of goods in stock for a 12-month period. So if you had $1 million of total inventory for the year, and sold $1 million at cost, you would have one stock turn a year. The benchmark is to have four stock turns a year, to maintain a healthy cash flow.

Measure wages as a percentage of sales — Setting a benchmark on wages as a percentage of sales is a very basic, but important, strategy. Remember to factor in all of the add-on costs that are associated to wages such as commissions, payroll tax, superannuation, workers compensation, etc. Also when deciding on your wages percentage target, look at what you can afford within your margins, and also adequate floor coverage, so in order not to miss any sales opportunities.

Measure marketing expense as a percentage of sales — It is amazing how many businesses burn cash on useless or over-marketing expenditure. Some of the budgets are plucked out of the air, with no real understanding of how it impacts cash flow. Then when times get tough, retailers rein in advertising, which compounds on the loss of sales. Set yourself a marketing expenditure budget based on a percentage of sales, so that you don’t overspend, or lose traction when business slows down.

Evaluate your rent expenditure — Evaluate your location strategy on a regular basis, if you can rent cheaper premises without hurting the business, then move. We know how hard it is negotiating rents with a major shopping centre, which is why we focus on location strategy rather than negotiating a cheaper rent.

How to maintain long term employees

How To Maintain Long Term Employees

Training has become an indispensable activity for every business, and no one can deny the incredible benefits that businesses can reap from it. Some of us might ponder on the need for investing in training our existing employees when we have the option of hiring new employees that are already highly skilled. The easiest and most logical counter to this question is that the cost of hiring a new employee is much higher than the cost of training your existing workforce. So, what would you do now?

Training may be considered to be a major investment in the beginning, but the variety of benefits it delivers to the company is incredible. To stay competitive, and for sustained growth in our ever-changing market, a business needs to keep its workforce trained and highly motivated. Such essential employees are considered to be important assets — playing crucial roles in the long term success of businesses everywhere.

Let’s have a look at the benefits that come from training the workforce:

1. Increase Productivity — Effective training will eventually result in an increase in the productivity of the staff in any business. Trained employees can utilise new techniques and systems when dealing with their day-to-day work, thereby enhancing their accuracy and efficiency. Increased accuracy and efficiency will — by definition, automatically increase the overall productivity of all business operations.

2. Increase Morale of Employees — Training boosts the attitude and morale of the staff. Training will, over time, minimise the reluctance of employees towards future changes in the organization. People will form a positive attitude towards training if they can clearly see its relevance and the benefits it brings.

3. Decrease Staff Turnover — It has been observed that trained and motivated employees are the ones that serve a business for a longer period of time — as compared to others. As a trained employee is content with his job, he is far more able to coordinate his ambitions with those of the company.

4. Workforce Flexibility — Training aims at developing different sets of specific skills in employees with the goal of making them more flexible, so that they can be engaged in a wider variety of activities. The idea is not only to make the workforce effective and efficient, but also to make it multi-tasking or specialist in nature.

5. Decrease Costs — Does it really? Yes, training can definitely lead to a decrease in various business costs. Training saves money through limiting waste — whether in time or material, limiting the supervision expense and reducing the number of workplace accidents. Trained employees can perform diversified sets of activities single-handedly.

So, irrespective of what sort of business you’re in, the number of employees you have, or the size of your business — Train to Gain!

How does usda prime get graded

How Does USDA Prime Get Graded

The United States Department of Agriculture oversees and grades USDA prime steak all over the country when a meat packer requests them to do just that. People look for the USDA stamp of approval which testifies to people that those steaks are of superior quality, texture and taste.

Unfortunately, if you are looking for steaks that are USDA prime beef in the supermarket or even at your butcher, you will probably not find them. Most of what you would get in USDA prime steak is bought by high end restaurants or consumers that have requested a large amount of steaks for themselves or for an event.

The inspection system for USDA prime beef is a very complicated one. And, it is very meticulous in being exact because this grading system specifies the quality of beef. Initially the amount of marbling that the steaks have and then it combines the age of the beef and that gives the inspector his USDA grade quality.

Generally speaking, if there is a high amount of marbling and the beef is young, the grade is much higher. The marbling of the USDA prime beef is what gives it all of the flavor and tenderness that is desired by people who purchase these steaks. The older the beef is the more tough it is, deeper red color it is and the age also affects the flavor as well as the texture. When the steaks are young, they are lighter red color, more tender and a better texture.

The highest grade is the USDA prime grade which gets stamped on USDA prime beef and USDA prime steaks. You can be guaranteed that if you see that on steaks, that they are the most tender as well as the most flavorful and finest texture beef you can buy.

There are only three grades of USDA beef that you can buy in a supermarket, butcher or from mail order steaks. They are Prime, Choice and Select. Prime obviously is the finest with Choice being second and Select last. The USDA grade of Select is not closer to Prime, but actually closer to the bottom. Many beef wholesalers and even supermarkets will try to convince you that Select grade is right next to Prime when nothing could be further from the truth.

How to select a network marketing company

How to Select a Network Marketing Company

Network Marketing is now being taught at over 200 colleges and Universities.

This will only increase as Companies and Individuals look for ways to minimize distribution and advertising costs. This allows the Company to avoid huge marketing costs and collection issues, and also allows the Company to maintain an acceptable profit margin.

In return, the Independent Distributors are given an opportunity to share in the profits. Tod do so, the product should be of a higher quality than what can typically be found at traditional retail outlets, and be value priced with comparable products. It is better for the Independent Distributor, often called an «IBO» (Independent Business Owner) If a product of equal quality and value cannot be purchased through traditional marketing channels.

What typically happens is that products that are superior quality from a Network Company are successful are «copied» by others, and often when end up on store shelves. Many of these are inferior quality to the original, but are offered at a lower price point using the same appearance and similar ingredients. In marketing, whether network or not, this is called the «product life cycle».

In the beginning, Network Companies and their «IBO’s often have a strategic advantage, especially if the product is unique, which it often is, and excellent quality. Regardless of the Business Opportunity, it cannot sustain the Company itself. In the end, it has to be about the product. If you are fortunate enough to have a unique , quality product, and are in «early», then your chances for success are greatly enhanced.

The longer the product is on the market, the more «copied» product will appear, and the more distributors. A good example are nutritional supplements. 40 years ago, you could purchase higher quality supplements and vitamins from direct Companies like Shaklee. Lower quality vitamins were(and still are) available at retail, Like «One a Day». As society has looked for alternatives, Network Companies offering quality supplements have increased.

Currently, the Health and Wellness sector for Nutritional Products is approaching the 1 trillion dollar mark. These type of products are consumable, and offer an excellent chance at repeat sales.

If you carefully select the right Company with a unique product, and your timing is right,then your chances for success are greatly enhanced. It is much better to get in early, selecting the right Company and other «IBO’s»
to work with, which are often referred to as your «upline».

Most Networking Companies that fail do so in the first 18 months; But, it is also true that those that enroll during pre-launch or shortly thereafter stand to make the most money; so it is important to select the company carefully. You don’t want to invest 2 years of your time, and start making a residual income that you never though possible, and the company gets sold, goes out of business, or can’t produce enough to meet demand. And you don’t want to wait 2 years, to see if the Company has staying power, and then miss out on all that early growth and opportunity.

It’s sort of like picking a «penny stock» , anything under $5 per share. Microsoft, Apple, Dell, and Cisco were once «penny stocks».

Inevitably, you will pick some good ones and maybe some that seemed like a good idea that didn’t turn out as well. So in evaluating a Network Company, you want to consider the Financial Stability of the Company, the Uniqueness and price point of the product, and the upside growth potential.

Look at the owners and Management team. many were successful as an IBO in a previous company, or as an officer or Investor.

The great thing about Network marketing is using the Power of Leverage, that is others will help you grow your business. So in the best case scenario, you invest a small amount in product, primarily what you will use, and then spend time developing your business. Network marketing is all about working smart first and hard second. You can spend an extraordinary amount of time and money and have little to show for it. On the other hand, if you work smart, you will be one of those successful entrepreneurs we hear and talk about. And realize it may not happen on the first Company. I know a fellow who was a house painter by trade who did not find success until his seventh company, and became a multi-millionaire from that one.

Had he done due diligence, he may have been able to shorten his learning curve. The good thing for anyone considering a Networking Opportunity is we can learn from others who have succeeded. Many have had failures along the way, and by studying them you can enhance your opportunity for success.

Kick butt right now with 5 essential 2009 career goals

Kick Butt Right Now With 5 Essential 2009 Career Goals!

These days you need stand out more to your current employer and other companies. When you take the initiative to get noticed correctly you’ll be a much better candidate in the job market. And you’ll be a more valued employee in your current job.

So, here’s how you can position you for success :

1. Try to feel differently about the people around you. Instead of trying to acquire more and more contacts, spend more time with the ones you have .

2. Visualize where you want to be in one, three and five years. What kind of job, where is it located, whom do you want to work for and with, and what are your compensation expectations?

3. The best way to be visible and rise higher in your career is by being passionate about your work. And do it exceptionally well. When you excel, other people will talk about you.

4. If you’re doing an outstanding job and senior managers aren’t noticing you, maybe you’re not talking enough about yourself. Market yourself within your company. For example, acknowledging others’ success raises their visibility and puts the spotlight on you.

5. You have to build your contact bank or expand your network. Why? Because the most valuable resource you have is not your resume or work history, but your access to a diverse range of folks who can be helpful to you in many different ways.

These career goals go way beyond the passive «traditional» ways of thinking about career advancement. With the old-fashioned way you take a quantitative approach . . . thinking that doing more of the same will get you ahead. In other words you’re getting nowhere fast . . . you’re just moving in place, only you’re moving a lot faster. That’s last century thinking.

In case you missed it, we’re living in the 21st Century. So why use last century methods to look for a job or advance your career?

The dynamics of the 21st Century have changed everything.

OK. You can still find classified openings in the newspaper. There are still lots of agencies and recruiters at work, as well. And, of course, you can post your resume to some job sites.

But the marketplace has shifted dramatically. Expectations of both employers and job-seekers have moved in decidedly new directions. For example, employers expect job-seekers to know and understand corporate goals. They want prospects to demonstrate how they can contribute.

On the other hand, job opportunities are being created on the spot and the candidate can be part of the creation process. Above-average deals are the products of above average negotiations where «dollars» is only one part of the total package.

Most importantly, if you want to excel, if you want a superior job with more money, if you want to select your next job rather than settle for it, you must understand and embrace the dynamics of today’s job marketplace.