Organization of the Finances
We believe there are a few things that can be done to help save this business. First off, a better job must be done regarding the organization of the finances. Not having records of production and data on product costs hinders the ability to accurately recognize profits. All financial records should be kept (not limited of a checkbook, unreconciled bank statements, and tax returns). It is important that this information is updated annually, if not more frequent.
We also believe it would be very beneficial to the business if a sales representative was hired to assist with the traveling during summer months. Therefore, a better opportunity would be available to focus on maximizing profit. We believe if you hired someone to do all of your finishing, this would benefit you do to the fact that you would be able to increase your efficiency on blowing. You would possibly be able to cut down your time blowing because you are specializing in this task and you do not have to worry about going back and forth between stations.
Last but not least, it is very important that you develop an allocation base so that you can assign product costs to know what jobs are profitable and what prices to use. This will also give you the ability produce unique, made-to-order products that customers have been requesting. We believe these steps will lead you in the right direction to saving your business.
We believe there are a few things that can be done to help save this business. First off, a better job must be done regarding the organization of the finances. Not having records of production and data on product costs hinders the ability to accurately recognize profits. All financial records should be kept (not limited of a checkbook, unreconciled bank statements, and tax returns). It is important that this information is updated annually, if not more frequent.
We also believe it would be very beneficial to the business if a sales representative was hired to assist with the traveling during summer months. Therefore, a better opportunity would be available to focus on maximizing profit. We believe if you hired someone to do all of your finishing, this would benefit you do to the fact that you would be able to increase your efficiency on blowing. You would possibly be able to cut down your time blowing because you are specializing in this task and you do not have to worry about going back and forth between stations.
Last but not least, it is very important that you develop an allocation base so that you can assign product costs to know what jobs are profitable and what prices to use. This will also give you the ability produce unique, made-to-order products that customers have