Can Your Company Benefit From A Consulting Engagement?
We have the ability to
assist business owners with several of the most common issues that
typically prevent businesses from attaining their full potential. We
have helped unprofitable companies to become profitable, and profitable
companies to far exceed the expectations of their owners.
you as an owner must be aware of the various issues that may be
limiting the performance of your business.
Note that the first few questions can apply to any business in any industry, while the remaining questions apply to a few select types of businesses.
- Do you have an annual budget? Do you receive regular reports that allow you to track the financial health of the company? Is there an effective method of plotting the flow of cash into and out of the business?
- Do you know what the company's breakeven point is? Do you know how to properly apply the breakeven concept to your business?
- Do you engineer an actual profit target, or do you accept profit as what remains when all expenses have been paid?
- Is your organization's structure optimized to allow your employees to be able to produce their best results?
- Do you have a self-funding incentive plan for your employees? Are your employees regularly appraised, so that they know what their performance is, relative to what is expected of them?
- Do you have an effective training program for new employees? Are the responsibilities for each position clearly documented in a job description?
- Do your human resource systems accomplish the objective of rewarding stellar employees and systematically eliminating weak employees?
- Are you able to recover all of the direct costs of doing a job when you provide a bid? How do you accommodate for the effects of overhead in your bids? What is your burdened labour rate?
- Do you know how to perform a financial re-cap at the end of each job, to ensure that the financial targets included in the bid were matched or exceeded by the actual results?
- Are you able to calculate the breakeven price for each job?
- What is your process for handling change orders? Is it consistent with your profit targets? How do you handle rework?
- What is your credit policy? What parameters do you use in deciding whether to offer credit?
- Are you able to recover the cost of your overhead in your pricing?
Do you know how to properly calculate a selling price, given your cost, your overhead burden, and your target profit?
- What are you doing to counter the effects of shrink? What is your shrink percentage? Are your cash register procedures consistent with reducing both internal and external theft?
- What is your optimal level of inventory? How many inventory turns are you
generating per year? What is your optimal number of turns per year? Do your ordering quantities vary according to who actually places the order?
- What is your optimal payroll to sales percentage?
- How do you handle close-dated or outdated product? Do you know how to read closed date codes?
- Are your portion sizes consistent from server to server, shift to shift?
Do you have preparation instructions for every menu item?
- Is your menu priced correctly?
Does the menu pricing include the labour involved in preparing the meal? All the peripheral items involved in serving the meal?
- Does your pricing mechanism account for the effects of overhead? Does it include a calculated profit?
- How can you be sure that you have an optimal level of inventory? Is the amount of waste generated consistent with company targets?
- Is there an appropriate level of control over the alcohol in the business? How often is it inventoried? What are the results?
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