13. • Look for piles of “stuff” – waiting or inventory
• How can you reduce this?
• Think about the ergonomics of your desk, office, vehicles
• Do you have everything you need regularly – close by?
• Set up standard ”kits” or toolboxes
• Think about the amount of travel you do
• How can you reduce this? Scheduling?
• Can you make better use of travel time? Audio-books, podcasts?
• Review the Tasks you do?
• Can someone else be doing them?
• What is the best use of your time?
• Errors and mistakes
• Review them – timely, action plans
• Understand the “real costs” of these errors
Waste Tips
16. • Assets – a resource with an economic value that an entity owns
or controls – property, equipment, stock, WIP, cash, loans by us,
Debtors (receivables)
• Liabilities – future sacrifices of economic benefit – loans, debts,
creditors (Accounts Payable)
• Equity – Ownership interest – how much of the Assets do we
own?
• Some Balance Sheet movements between Assets and Liabilities
will not be reflected in the P&L e.g. cash to pay capital. Change in
valuation. Can also include “provisions”.
Basic Definitions –
Balance Sheet
18. • Revenue – Income in all its forms – sales, rebates, payments, interest.
Excludes capital movements.
• Cost of Goods Sold (Direct Costs) – accumulated total direct costs of
product sold – usually includes: stock, transport, production labour,
consumables – note: Trading Stock calculations
• Overheads (Fixed Costs, Expenses) – additional costs in running a
business includes: costs that do not vary directly with production
includes: depreciation and finance payments for interest.
• Profit – a financial gain when revenue exceeds expenses. Not
cashflow.
• Cashflow – net result of all cash movements in the business excludes
non-cash transactions but includes capital payments and asset sales.
Basic Definitions –
Profit & Loss
27. There are only 4 ways to lift profits:
What lever would you pull to increase profits in your business?
Increase Price
Decrease Direct Costs
Reduce Overheads
Sell more product at same cost structure
Financial
Levers to
Pull
28. There are 6 key drivers of cash in your business:
• Sales
• COGS
• Overheads
• WIP & Inventory
• Debtors and Creditors
• Debt movements
Cash Drivers