Business Improvement :
Strength & Weakness of Your Business

 

Part 1 : To Identify your Focus of Business Product

 

Strength: on Manufacturing / Production

[ Cost / Quality / Product / Research & Development ]

 

 

 

 

 

 

 

 

 

 

 

 

 

Weakness:

01. Keeping too much stock that has less demand, but could have a demand in future (unknown).
02. Keeping too much stock that has no system of recording.
03. Keeping too much stock that keep everywhere for the same product, due to limited space.
04. Do not know the location and quantity of the obsolete, damage, and old stock.
05. Purchasing without knowing the needs of the production or the product requirement.
06. Purchasing without knowing the capability of the financial to make the payment.
07. Too many people involve in purchasing that nobody could come out with a proper costing.
08. Lacking long term relationship with the suppliers, you could receive less important or false information.
09. It's easy to create more supplier with term, but unable to shorten the collections.
10. Did not control cost by calculating the capacity and the risk to manipulate the flow,
     changes involved
     a) New Machine / New Product / New Manpower / Extra Storage space (the flow)
     b) Machine Repair / Product spoilt / Manpower did not turn up or less / Storage clean up
11. Do not have the record in hand for actual costing compare with estimated costing.
12. Could not calculate to-date costing and unable to charge under the billing.

 

* Must perform detail paper work.

 

Part 2 : To Identify your Focus of Business Sales & Cash Flow

Strength: on Sales / Market

 

Weakness:

01. Could not identify a strength for a specific market, due to no thorough research.
02. Could not satisfy customer requirement and needs.
03. Unable to claim back market portion due to new comers.
04. Does not have a good marketing plan, therefore less orders.
05. Facing an economic downtrend, less demand.

 

Financial Weakness:

01. Working Capital Less. How much is enough?
02. Loss of financial support.
03. Tax liabilities.
04. Burden with loan/rental agreement.
05. Bad debts or sudden increase of overdue debts.
06. Cheated.
07. Legal matters.
08. Bad Financial Controller.
09. Extend Financial Credit over dependent on subsidy.
10. Does not have a cash flow report & projection.
11. Unable to collect debts. Lack of method collections.
12. Receive calls from bank that overdue accounts.
13. No concrete direction on the cash flow.

 

Top Management Weakness:

01. Forgetting business needs growth.
02. When internal staff starts to steal business.
03. When speaks more than actions occurs.
04. When expectation higher than actual, such as invest into new industries.
05. Spend too much time and money into irrelevant matters such as budgeting
     instead of sales improvement, and problem solving attending customer complaints.
06. Bad management such as no communication between departments.
07. Too busy to work, forget about good planning.
08. Starting a business without experience and resources.
09. Without a good team of people with a good team works. Always changes.
10. Too dependant less than 5 major customer which contributes > 75% sales.
11. Lack communication with the bankers.
12. Trying to ignore problem and hiding problems.
13. Lack of professional advices.
14. Having lazy top management.
15. Having a non-negotiable top management.
16. Accounts not up to date monthly.
17. Always forgot about tax responsibilities & planning.
18. Unable to fix a product pricing or service pricing.

 

* LESSON to be Learnt :
- improve negotiation skills
- It is not easy to crawl back if business failure, because being black listed.