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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Questions About Reporting, Business Analytics, or Fixed Assets?
In the article, The Bigness of Smallness: How Businesses Can Get Bigger by Acting Smaller, the author John Moore lists five rules for a company to get bigger by acting smaller (Moore, 2007). Moore’s rules are: be the best, not the biggest, love your business, passion attracts passion, treat your employees as family, and redefine success (Moore, 2007). With being the best, not the biggest, the author suggests the foundation of the business needs to be nearly perfect before any substantial growth can occur (Moore, 2007). Moore’s second, third, and fourth rules are direct reflections of the business owner’s personality. If the owner loves the business, displays passion and treats employees as family, the business entity will reflect those morals (Moore, 2007). Due to the Pygmalion Effect, followers will want to emulate the charismatic leader, creating a friendly atmosphere that appeals to customers.
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