Key Performance Indicators Can Help Set Better Goals For Sales
In Australia the CFO Centre aims to build long-term relationships with its clients through the provision of its range of added value services and by establishing a basis of trust and confidence.
By focusing on a few Key Performance Indicators, a manager can better determine if a representative can realistically meet the quotas and financial goals the company has set for him. This is a far more effective approach than simply raising a reps quotas and hoping the increased pressure will get him to perform.
After taking into account all of the activities a rep is asked to perform, an effective manager should then identify the activities that would be considered the Key Performance Indicators for their organization. These specific activities should be highly correlated to the production of the ultimate result.
It is very rare for you to go through the Capital Raising process without encountering obstacles and hurdles. Some of them you will learn on the go, others you will learn the hard way. However the point is not to completely eradicate mistakes but to identify them and understand why they happened and ensure that they won't happen again.
Business Funding is often the catalyst for taking your business to the next level. Deciding to go down this route and having to learn how a whole industry functions can be a painful process. Having a senior CFO as part of your team who has experience of the process and understands the pitfalls and advantages can help lift the cloud of uncertainty.
Our experienced, Part Time CFO advise having a standard 9 week visibility plan over cash flow which prevents these issues occurring, promoting a much calmer and less frenetic atmosphere in the business.
The business owner often feels guilty and feels they are the cause of the problem. Employees sense that there are problems, which leads to negative rumors and a lack of perceived stability. Suppliers sense something is wrong and suddenly want paying faster, which can lead to difficult conversations. The chosen fix is often to simply sell more and yet there is not enough money in the marketing pot to boost sales.
When Cashflow Problems arise it is very easy to ignore them in an attempt to battle on and hope the problem will go away. Cash flow management is not a short-term fix to a problem but should be part of the fabric of the business; a systematic approach, which should underpin every business wishing to ensure long-term stability.
There are many aspects to cash flow management but by way of a summary a part-time CFO from The CFO Centre would work with you to:
** Review the scope of your cash flow challenges
** Work with you to uncover all weaknesses and threats
** Create internal and external communication plans to make sure all parties are kept fully informed
** Ensure that the bank is reconciled and accounts are up to date
** Limit and consolidate your outbound payments to simplify the cash flow management process
Good cash flow management can be likened to an internal insurance policy for your business. Getting to grips with your income and expenditure and understanding where you stand today as well as in the months and years ahead gives the CEO, MD and senior team a great sense of clarity and peace of mind and we would urge every business to implement a professional cash flow management strategy in the early stages of development.
Navigate to this website for getting more information related to Key Performance Indicators as well as, Business Funding.
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