What are some typical Company Goals?
Revenue and how to increase it 2x – 4x! One hundred percent of companies have a revenue goal. Most have a net income goal that is usually only known to upper management. But what other company activities should be company goals? How about the following:
• Customer Retention
• Specific Area Expense Containment Or Reduction
• Production Volume (Must have a quality goal too)
• Timely Delivery
• Account Receivable Collection Time
• Employee turnover
• New Product Development
• Customer Satisfaction
These are examples of what COULD be company goals.
EXAMPLE: Setting Goals and Meeting Them!
Thirty-Year Pump Distributor
A CEO inherited this business from his Dad who had run it for 20 years. The son had run it for 10 years and was working 8-14 hours a day, six days a week to make ends meet. He had not taken a vacation in ten years. He had four kids and hardly ever saw them. He never knew where the next dollar was going to come from.
His accounts receivables (A/R) were at 89 days. He was a good guy and paid his payables in 30 days. At $3.6 Million in revenue per year, how much money was tied up in A/R? ($300,000 per month times three (3) = $900,000). Dale based the proprietary simple, but effective A/R collection methods were used to transform the A/R from 89 days to 23 – 25 days. This supplied $600,000 of cash over a few months.
Half of their inventory did not turn in a year. He could call the manufacturer and get the pump he needed in five days. A “special sale” notice was sent to the customers and within a couple of months, $200,000 of dead inventory was sold and brought in extra cash.
Then a local bank was contacted and a line of credit of $200,000 was established. In six months almost a $1,000,000 of cash was generated to ease the cash burden. He was encouraged to take his wife and family on a cruise and re-establish quality time and communications. It worked.
Excel Management Systems, Dale Richards, makes Accounting Principles work to manage a business to 2X-3X revenue, profits and value as testified by Ray Singleton, Denver, Oil and Gas Industry. Ray Learned key business concepts from Dale Richards’ presentation on Business Valuation Principles – How to Increase Your Business Value, Financially, Operational and Strategically.
Learn more about Business Valuation Principles by Dale S Richards http://a.co/cVsYyNNhttp://successbiznow.com/books/business-valuation-principles-by-dale-richards/
ABOUT DALE S. RICHARDS:
Preview Dales presentations: Watch Dale In Action Dale S. Richards specializes in management, marketing, operation optimization & business valuation consulting and is a 25+ year turnaround expert. He has implemented success concepts into results in 150+ companies. Dale is a Certified Valuation Analyst (CVA) with NACVA, a Vistage International CEO-Board Chair in Utah and a World and Vistage International Speaker. Visit www.successbiznow.com to learn more about Dale and business valuation services.