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Continual improvement of performance is the key to business success. In an increasingly competitive marketplace and a constantly changing financial environment, an organisations overall effectiveness and productivity can be easily impacted.
Purple Life offers a range of services to assist small to medium enterprises with strategies to reduce costs, improve efficiencies, enhance systems and processes in order to achieve short term business success and drive long term sustainable performance.
Business Health Checks
- Balance sheet
- Check working capital adequacy
- Examine and evaluate fixed assets
- Review capital structure
- Review corporate governance and compliance
- Examine reconciliation processes
- Assess financing arrangements
Improving 7 key numbers can increase your cash flow.
Stock & work in progress
Manage stock in line with sales forecasts to ensure adequate levels are maintained to satisfy customer demand and prevent unnecessary surplus.
In 2014 Dunn & Bradstreet reported that average collection days were 55.6 days. Compare this to your debtor’s days.
Are there any obsolete assets on your books? Do your actual reported assets match physically?
Are you taking advantage of payment terms provided by your suppliers?
Are you struggling to meet the weekly payroll?
Does the business have the right capital structure in place? It is important to have the optimal blend of equity and debt. The strength of a company’s balance sheet can be evaluated by three broad categories: working capital adequacy, asset performance and capital structure.
- Profit & Loss
- Net income assessment
- Analyse cost of goods sold and overheads
- Review bad debts
It’s vital to know the true cost of the product or service you provide. Avoid ‘margin squeeze’.
Set key performance indicators (KPIs) and analyse ratios.
Cost of goods sold (COGS)
One of the main drivers for continuous process improvement is COGS reduction and sourcing your products at the best price.
Managing overhead costs proactively and with a long-term perspective can effectively break the reactive cycle and permanently improve a business’s cost competitiveness.
Strategic and Financial Planning
- Implement budgeting and forecasting tools
- Assist with the preparation of strategic business planning
- Business succession planning
Business Processes Management (BPM)
- Review current processes
- Establishing and automating improved processes
- Standardising processes across the business
- Documentation of policies and procedures
A 3 – 5 year plan will document the key aspects of your business and acts as a reference tool for you to develop and maintain the business.
New Business Start Up Plans
- Provide advice on business structures
- Assist with the preparation of business plans
- Advise on costs and financing arrangements
- Provide advice on business registrations required
- Improve existing financial models
- Provide financial model structures
- Automate manual finance processes