Business Performance Assesment For Small Businesses

1. How to Assess Your Business Health And Increase Your Profit

2. Topics • The 5 Key Performance Indicators (KPI) • Identifying the area/s of improvement • Possible Corrective Actions for 2 KPI areas

3. Growth in Salesn Sales How to assess business performance – the 5 KPI’s – key performance indicators Availability of Cash Growth in Profit Compliance Asset efficiency

4. Growth in Sales / Profit

5. Availability of Cash

6. Compliance

7. Asset Efficiency

8. Business Performance Evaluation • KPI – Growth in Profit • Are you able to recover your cost and earn income over and above it? • KPI – Growth in Sales • Are you able to make the required sales as per the projections? • Do you have enough customers and sufficient orders to meet the estimated sales? • Do you have repeat customers on regular basis?

9. Business Performance Evaluation • KPI – Availability of Cash • Do you have stock of finished goods to meet the estimated sales for next 15-30 days? • Are you receiving the payment from most of your customers within the credit time you have given? • Are you able to pay most of your suppliers within the stipulated time ? • Are you able to pay most of your expenses in time ? • Is EMI paid on regular basis • Is the CC account within the limit and interest is paid on regular basis?

10. Business Performance Evaluation • KPI – Asset efficiency • Do you think you and/or your employees have sufficient work? • Is your stock of Raw Material, Adequate enough? • Do you think your equipment/ machinery are fully occupied during business hours? • Are your equipment/ machinery regularly maintained? • Do you have manufacturing/ service processes standarised and documented? • KPI – Compliance • Have you filed the ITR of previous financial year? • Are all legal registrations renewed ? Like Shop Act, FSSAI registration, GST etc. • Have you taken the insurance for your Property, Stocks and is it renewed? • Have you taken the insurance for your Raw material and is it renewed?

11. Possible Corrective Actions – Growth in Sales • Study Competition • Identify target customer group • Review place of business • Review product portfolio • Define brand and USP • Relook at pricing • Review promotions strategy • Create marketing plan & monitor regularly • Analyse sales metrics

12. Templates for corrective actions Identifying Target Group Analysing competitors- SWOT analysis

13. Possible Corrective Actions – Cash flow management • Get Cash Credit loan (CC) from bank against your stock and receivables • Plan your EMIs • Reduce advance payment for purchases • Reduce credit period to customers & improve recovery • Make provisions for unexpected expenditure • Plan for raising adequate funds to meet capital expenditure • Plough back profits into the business to strengthen the financial position • Purchase from supplier on credit without affecting profitability

14. In-flow Out-flow Tracker

15. Cash Budget Tracker

16. Did you find this knowledge beneficial? http://tiny.cc/viv81y

17. Eligibility criteria for availing deAsra Services • Need an appointment check whether you fulfill following pre-requisites:- • Have you finalized your business Idea ? • Do you have an adequate knowledge & experience in the proposed line of activity? • Have you undergone any training for the same?

18. deAsra Services x deAsra Services 18

19. Need our Assistance? Connect with us. We would be happy to help! 8669985599 team@deasra.co.in www.deasra.in • www.facebook.com/deAsra/ • www.twitter.com/deAsra_FDN

20. Thank You !