SAN ANGELO, Texas — Not long ago I was visiting with owners of a local small business in the services industry. They were frustrated by the lack of knowledge and understanding by key employees on what drives profits and cash flow.
In many respects these employees are good employees and want to do what is best for the company. What follows are some examples of the business owners’ frustration.
First, key employees would advocate for more and more inventory, just in case it was needed. The owners knew that each piece of inventory had a high cost and the extra inventory would sit on the shelf tying up cash and eating up profits in carrying costs, “just in case.”
Second, these same key employees would fail to charge customers for their work in the field because it didn’t “feel right” to charge all of their time, even though most companies in their industry, their customers, are making record profits. Finally, the employees would routinely discount jobs and parts because they wanted to “take care of the customer” without regard to the affect this would have on the business in terms of profitability and cash flow.
Now you can see from these examples the key employees of this business have some level of autonomy and are empowered to make certain decisions. The owners are experienced entrepreneurs who say they have tried to educate employees on what drives profits and cash flow, but to no avail.
Does this sound familiar? The owners understand what drives profits and cash flow, but they have found it difficult to teach these principles to their key employees. They need the right tools to teach these principles and teach overall how money flows through their business.
There is help in the way of an extensive two-day workshop that will give small-business owners the tools to better teach the financial knowledge their key employees need. The workshop is called profit mastery. Many believe it is among the finest financial knowledge courses for small to medium-sized businesses. There are many testimonials which attest to this belief.
The Angelo State University Small Business Development Center is offering the two-day profit mastery workshop June 7 and June 14. The instructor is a former small-business owner and commercial lender. His style is down-to-earth and he teaches in a humorous, easy-to-understand way. Participants work in workbooks after each section, which is facilitated by those certified in profit mastery.
Those who attend the workshop will walk away with a greater ability to make business decisions based on their new level of financial acumen. They also will be better able to teach and coach their employees on the factors that drive profits and cash flow so they too can make better decisions for the financial health of the business.
For more information on the workshop or for other assistance the Small Business Development Center can provide, contact me at the email listed below. Thank you and best wishes for a positive cash flow!
“Business Tips” is provided by Dave Erickson, Director and Certified Business Adviser IV at Angelo State University’s Small Business Development Center. Contact him atDavid.Erickson@angelo.edu.