Measurement and Records
Good record keeping can be the savior of businesses when you need to either review a product line for profitability, or prepare documents for a day in court.
Record keeping involves all financial transactions , the costs of every purchase and the time costed for every staff member, and management team member, including all stock, product, service, asset and savings in the bank. The best approach is to record everything that involves money. Good record keeping also includes other aspects of your business and these ca be a collection of details relating to a specific project or product line, especially when that product is in development and you want to know about how long something takes to build before it gets to a customer or how much it costs to change something that improves the value for the customer.
This refers to the things you are measuring, how and why you are measuring. The standard units of measure for any business include the three basics if time, cost and quality. However, you can add to this by breaking down each build process for your product or service and apply these three elements again and this can give you amazing data that you can refer to when changes occur in the marketplace for just one component of the product or service. By example if you are selling honey by the jar and the jar manufacturer has decided to change the jar shapes and sizes and at the same time the cost of these you can quickly calculate what will be the new optimal size you can sell your honey by simply substituting the jar sizes accordingly. If you did not keep these measurements and records you would be faced with either not knowing what will be the most profitable size or a lot of trial and error in testing it with your customers.
Glenn Cossar Consulting can hep you develop the most applicable measurement and offer advice on the best way to record these important details of your business. A natural lead on from good measurement and record keeping is to benchmark your business with others in the market place and maintain details of how you stack up or measure against their business. Benchmarking is an effective tool for ensuring you know where you stand in the marketplace and enables you to further analyse any adjustments you need to make to increase both profitability and market share.