For Good Measure: Know How to Take Your Company’s Vital Statistics
In the article, For Good Measure: Know How to Take Your Company’s Vital Statistics, the author Crystal Detamore-Rodman recommends routinely analyzing the ratio between assets and liabilities to assess the growth of a company (Rodman, 2007). The profit and loss statement is instrumental in determining which direction the business’s cash is flowing. However, Rodman states the “cash-flow analysis is just a start.” (Rodman, 2007) Offering incentives to the slow paying customers may encourage them to pay quicker (Rodman, 2007). Providing excellent service to the profitable customers and firing the slow paying, non-profitable ones develops a more positive cash flow (Rodman, 2007). If a company has a limited supply of technicians, and an ever-growing customer base, the technicians may not be able to provide the excellent service customers expect. It may be a good idea to determine how many customers one technician can successfully service and limit the technician to that specified amount.
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