10 New Years resolutions to power your business

It’s that time of the year, a new beginning and a fresh start. Don’t allow bad habits from last year to drag you down. Dave Bell gives some worthwhile pointers on how to improve in 2005.


We are all used to making News Year resolutions for ourselves but here are 10 New Years resolutions for your business. Like resolving to lose 10 kg from your waistline some of them will take months to implement but in the long run it’s worth the effort as you will end up with a slimmer, more profitable business.

1.Aim to reduce the time it takes your debtors to pay you. If your average time is 90 days (and you have a real problem here if this is the case) try and reduce it by 30 days. If it is 60 days aim to reduce it by 15 days. If you have $300,00 in monthly sales then this is like having an extra $150,000 to $300,000 in the bank. It can be done. One effective way of chasing money is to use email rather than phone calls. If you are a manager then check your outstanding debtors every day. Remind your sales reps to assist in the follow up.

2. Identify your 10% least profitable customers. Can you increase your profit margins here? Are you their printer because no one else will put up with them? Do your sales reps spend two hours with them for one business card order?

3 Identify your 10% most profitable customers. Is there any thing you can do to lock them in to your company e.g. offering them an end of year rebate?

4. Negotiate better payment terms / rebates with your suppliers. Practice saying “Can I have it for less,” in front of a mirror.

5. Reduce wastage. For example do you always need a full ream of stock for your make-readies? If you sell your waste check how much paper you throw out each year and aim to reduce it by 20%.

6. Computerize your payroll system. No more end of financial year payroll or superannuation dramas. Remember that there are new superannuation requirements from the 1st July 2005.

7. Computerize your ordering. Compare your quoted prices with the invoices you receive from your creditors.

8 Start tracking the actual times it takes to print a job. You may be surprised. The additional benefit is that you will know from your computer screen where a job is at rather than having to chase up your factory manager.

9 Look at value adding services e.g. forms management.

10 Install an integrated management information system such as Quote and Print.