Spring Clean Your Business...Anytime!16 Jul, 2008 By: Chris Polek imageSource
Spring Clean Your Business...Anytime!
When Spring arrives it gives us a feeling of “out with the old, in with the
new” –and this feeling usually includes the Summer months when, more than the
nice weather, it’s an opportunity to open up the windows and air out your
Forget what constitutes a "proper" spring cleaning, and instead take aim at
forging a new checklist. What are some of the questions you should ask yourself
that can help your business get a better head start as you enter the second half
How frequently does your inventory turn?
With the economy tightening up and daily headlines about the Credit Crunch,
it is even more difficult for businesses to acquire new capital than before.
Reducing your inventory levels is a self sufficient way for you to free up more
cash for your business. What type of inventory levels can you keep without
declining service to your customers? What are your lead times?
Take a look at your inventory levels and determine how many months of
inventory you are carrying. If you want to get your inventories lean and mean,
your mantra needs to be “buy less, buy often.”
Are you liquidating slow moving or obsolete inventory?
Did you come up with a higher inventory level than you would like? Take
another closer look, and see how much of that inventory is in slow or obsolete
items. Whatever that dollar amount is, it will always be there until you take
action to liquidate it. If it’s over one year, get rid of it ASAP. Even if you
sell it at or below cost, it is better than it sitting on your warehouse floor.
How much space is your inventory costing you?
The OEM’s are notorious for saddling dealers with a high quota that can
force you to load up at the end of the OEM’s fiscal quarter to earn an
additional rebate. You may have earned the rebate, and you also have to pay to
store it until you sell it and get paid. Some dealers use PODS or trailers as
they don’t have enough space to store the inventory for the big purchase
commitments they made. PODS can cost $3,000 each annually. Be sure to check
with your insurance company if these units are covered under your policy.
What’s happening so far with your set goals?
Did you actually write them down at the beginning of the year? When was the
last time you looked at them to see how you were doing? Be honest. If you
haven’t looked at them in months, blow the dust off the “goals list” and check
out how everything is doing now. Take whatever action necessary to work on your
goals. Do not waste too much time about what you didn’t do so far this year.
Start focusing on what is going to happen today, and for the rest of 2008.
If you have been regularly reviewing your goals, making progress and
accomplishments, then take pride in that and keep it up. Now is a good time,
however, to look at those goals again and say, “What else?” If you have
completed a lot of your goals so far, think about adding some new ones since
there is still a lot of time left in 2008!
Chris Polek is President & CEO of Polek & Polek, a wholesale distributor of
parts and supplies for copiers, faxes and printers. Visit
www.polek.com or contact him at
firstname.lastname@example.org or 800-526-1360.