Business performance controls

By October 21, 2019 No Comments
Discover the many ways in which money can be made in the food business.

Are you in control of your business or does the business control you?   Starting and running your own food business is hard work and not without risks, but it is also an exciting and satisfying challenge, but you need to respond to changes in your business quickly – often immediately.  By looking at the poor performance indicators of your business you may find possible causes as to why your business is not performing well.  By looking at these poor performance indicators analytically you may find ways to improve your business performance controls.

Symptom – Low Profit

Possible Causes

    • Poor sales performance
    • Wrong pricing strategy
    • Poor purchasing
    • Not controlling expenses
    • Ineffective staff
    • Poor decision making

Symptom – Falling Sales

Possible Causes

    • Old product
    • Poor marketing strategy
    • Targeting wrong clients
    • New competition
    • Poor season
    • Staff performance
    • Falling demand

Symptom – Increasing Expenses

Possible Causes

    • No records to control where, when or how the money is spent.
    • No performance standards to control how people spend their time or business funds.

Symptom – Staff Issues

Possible Causes

    • Low staff motivation
    • High absenteeism
    • Old equipment
    • Wastage
    • Lack of staff training
    • Lack of operating systems

Symptom – Cash Flow Problems

Possible causes

    • Falling sales
    • Expenses too high
    • Poor pricing policy
    • Purchase problems
    • Too little capital to start
    • Debtors slow in paying
    • Excess stock
    • Poor use of financial records

Symptom – High Production Costs

Possible causes

    • High purchase cost for raw materials
    • Inefficient production

Symptom – Overdraft at Maximum

Possible causes

    • Undercapitalised
    • Low overdraft level
    • Poor choice of finance
    • Poor financial control and record-keeping
    • Poor credit control
    • Low productivity
    • Poor stock control

Symptom – Advertising not working

Possible causes

    • Wrong target market
    • Wrong media
    • Poor advertisement structure

Symptom – Overtime levels high

Possible causes

    • Demand exceeding normal production capabilities
    • Inefficient production

Symptom – Can’t pay creditors (suppliers)

Possible causes

    • Profit levels too low
    • Poor productivity
    • Poor financial control

Symptom – Business growing uncontrolled

Possible causes

    • Lack of planning
    • Lack of management information systems

Symptom – Customers not coming to the store

Possible causes

    • Marketing strategy
    • New competition
    • Wrong location
    • Poor signage
    • Poor visibility

Symptom – Partners want out

Possible causes

    • Low profit
    • Argument over management
    • Lack of partnership agreements
    • Seeking new challenges

Symptom – Lease coming to an end

Possible causes

    • Term of the agreement expired
    • Ensure you exercise your option

By looking at the poor performance indicators of your business you’ll start to understand the business performance controls to save time, money and reduce wastage and take back control of your business.

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