It’s all in the detail…
Enjoy today, plan for tomorrow
When a business first starts, the owner tends to focus on the things they love to do. The designing, sourcing, making, selling, marketing, PR – these are the things that make us feel good and proud and driven. These are the things that get us out of bed in the morning and that make us smile.
But what about Operations management?
Some businesses, especially those born from a passion such as fashion, run on personal instinct.
This can result in ‘business plans’ existing only in one person’s head, and that’s not good for the business.
Without Operations management you can’t accurately know your purchasing requirements, your cashflow implications or your profitability.
• Divide your stock up by product types and category.
• Identify your products and categories by customer type.
• Identify your best and worst selling products.
• Identify your best and worst buying customers.
• Identify annual fluctuations.
• Identify what products you’re most likely to need, when and by what volume.
• Identify how much money comes in and how much goes out each month.
From this information you get a stock, cashflow and profitability forecast.
How much spare cash will you have? When and how should you (re)invest it?
Set boundaries for your business model and stay within them.
If you want to step outside your existing boundaries, that’s fine, but your business model changes FIRST.
Don’t just take it for granted that a love of what you do, will you carry you through.