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Written by: Boris Dzhingarov
Startup success is not at all something that is simple. You need to be prepared for an uphill climb and it is really important to set up everything properly. Never hurry the growth process and do be 100% sure that you are going to have the following systems in your business. They are going to help you to drastically increase the possibility of future success. The same is true for career growth.
Cash Management
You need to use a system that focuses on projecting the accounts receivable and then add the inflows against the accounts payable, together with all other outflows. Management of your cash will help you to anticipate any shortage that would appear. It is important as it keeps you protected at all times from one of the most common reasons why start-ups fail : lack of funds when payments are necessary. The great thing about cash management is that this is a process that can be automated. Just half an hour per week can help you to prepare for any problem that would appear.
Budget Management
You need a one year profit plan that would be a huge part of your management control. The system that you are about to use has to take into account the historical cost structure of the form and include zero based budgeting. Automating the process will help you to produce great monthly budgets.
Variance Reporting
This is a system that is completely complementary to your budget system. It has to automate comparison production of the results against the budget in order to bring in a proper image of the current situation of the company. Any report has to include the trouble areas so that the management team can take proper action.
Labour Burden Worksheet
It is important to know the burdens that the staff is faced with. Implementing a labour burden worksheet is going to help you deal with this problem. You get to see exactly how much the employees work and can see when they are close to getting to saturation. It is not at all difficult to predict problems and deal with them before they negatively affect your company.
A Pricing System
Such a system is going to automate pricing calculation, what is needed in order to meet the overhead absorption requirements, together with the budgeted profit goals. Alternatively, net profit margin can be seen before the application of taxing on a proposed pricing scheme. Use such a system whenever it is needed.
An Incentive Plan Worksheet
This worksheet is an equitably distributing profit sharing system that would give incentives to the employees based on performance, responsibilities and loyalty. When properly constructed, this is a system that just needs to be used 15 minutes once per quarter in order to be successful.
Sales Reporter
Such a system should work on a weekly basis. It will keep track of the product sales and even the salesman on a time frame that you decide. Half an hour per week can help you to easily deal with success and you will know what will happen in the future.