Growth Management is the process in place to ensure that the company’s market value increases on a consistent basis.
The following key tenets will ensure growth on a long-term basis:
1. Identify the major sources of Stress or Failure
- Determine the real causes of the company’s financial problems and address them with a bold and practical action plan.
2. Increase Cash Reserves to meet long-term financial obligations
- Implement robust accounts receivable collection program to reduce overall financial stress
- Reduce progressively inventory to reduce holding costs
- Establish priority payment on accounts payable to conserve cash
- Consolidate all purchasing if possible to generate savings
3. Reduce Operating Costs as necessary
- Activate an emergency cost structure that will eliminate all non-survival expenses in case of business slow-downs. This structure will stay activated until the business is financially sound again.
Analyze and manage the growth the company on a monthly or yearly basis and gather the following information:
- Net Profit Margin (Return On Investment)
- Operating Profit Margin (Return On Investment Before Interest and taxes)
- Gross Margin ( Return On Investment Before Variable and Fixed Costs)
- Break-even Amounts by period (The minimum amount required to remain operational)
- Retained Earnings (The progressive amount retained into the company’s balance sheet)
- Balance Sheet Overview (Equity, Assets, Liabilities)
- Debt/Asset Overview (Financial Stability)
- Efficiency Ratios (Key Financial Performance Indicators)
- Cash Flow Overview (Cash Financed, Cash Invested, Operating Cash, Net Cash Flow)
- Working Capital Overview (Current cash available after paying current liabilities)
- Greater assurance that the business will remain viable on a long-term basis
- Interest from investors because the business would demonstrate progressive growth
- Progressive growth of the company and greater marketability
Cost Benefit Analysis should be the driving force when speculating. There are many different methods available to manage inventory. The most effective will always involve attention to detail, offer a precise accounting of the volume at any given point in time, and...
Have you ever gone to a psychic or a gipsy with a magic crystal globe to see your future? No? But you must have seen it on TV or in cartoons at some point in your life, so you know how the story goes. The globe reveals the future and provides a guide on what’s to come...
With smart break-downs, everyone’s job is easier. Insight: Many organizations struggle to gather and process their financial information because they utilize only one system to process every transaction. The following flawed system represents for example, the usual...
Quality Control Standards (QCS) ensure excellence in the delivery of products/services. With strong QCS, a company will remain competitive and grow its consumer base, and therefore develop a strong brand. The reason why many companies do not favor a complete...
Big data is still data, but it is large or massive. It is a collection of data that is complex, massive in size and continues to increase with time. It is challenging to process big data if a person or institution uses traditional methods. Due to its size and...
Artificial intelligence, is machine intelligence. Unlike that of animals or humans, Artificial intelligence is anchored on human innovation, creativity, the invention as well as knowledge. These machines are programmed to think and process data like humans. These...