Miick Brings You the “How To” of Positive Cash and Real Profit
Dealing with any of these issues?
- Cash management
- Fiscal reporting
- Pro Forma evolution
- Budgets
- Fiscal year
- Reporting cycle
- Operations accounting
- Decision making
- Inventory/Purchasing (operations accounting)
- War Chest, working capital, Not enough cash
- Replacement/R&M
- Open books or not
- Profit Sharing
- Sales
- Profit vs/against Cash flow
- (Communication)
Profitability is an outcome of fiscal discipline; that is, the systems and processes that guide the effective use of cash flow to manage the cost of production, timely accounts payable, diligent accounts receivable, payroll, repair and maintenance, and capital investment.
Cash flow is king. That said, far too many companies live on cash flow and miss profit. This need not be the case. All the more, neither cash flow or profit need to the victim of recession or any other economic excuse. Fiscal health is exponentially more about choice, discipline, and conscious habit than it is about either, industry or economy.
Miick clients regardless of industry or economic trends, average 3x to 5x their respective industry norms. Too good to be true? This statement is true, 3x to 5x industry averages, time and again. How does this happen?
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Miick works with our clients to integrate fiscal health, meaning fiscal acuity into daily management systems that anticipate performance rather manage by autopsy, waiting for the month end financial statement to arrive. In all fiscal approach we work with our client community to look at sales and production in counter intuitive ways with definitive budgets and targets in dollars and percentages. This happens by the shift, by the day, by the week, by the period, then by the year… each day, every day. Outcome? Managers, owners and C-suite alike have quantifiable data at their finger tips by 10am each. Based on up to the minute data accrued daily, leaders and teams make clear, nimble decisions that anticipate what’s coming next and with a calculating eye on what’s just over the horizon.
Integrating Fiscal Acuity With Culture
Want more? Imagine having your team as a whole work with “ownership” eyes and attitude! This is a Miick norm. In all our work, Fiscal acuity is integrated with Culture, with communication, as a part of an inspired work environment! Imagine teaching the staff to read and understand a financial statement. Even more, imagine them able to build their own profit and loss statement as a family, by learning the application of fiscal acuity at work! Suddenly and in ongoing ways, fiscal acumen is a part of all staff performance. Ironic as it may seem, an engaged culture engages around fiscal results actively when we open that door. We walk at your side in the development of fiscal acuity, training and engagement! Watch sales and profit soar. Literally.
Cash flow is king, we know this. That said, when economic downturn shows up, cash flow is simply not good enough. Profit and a war chest of some size is critical to have.
We take cash management into a system that anticipates fiscal performance and cash flow in ways that support fluid and effective cash flow management and profit tracking up to the minute.
Issue: repair & Maintenance
It’s an oxymoronic to think of repair and maintenance in the same sentence. Ensuring that, as equipment is acquired and put into service, a proactive and comprehensive maintenance schedule is developed and followed is critical to efficient production processes. And, comprehensive, because if one machine or piece of equipment is down, it can affect the entire line.
Repairs should be out of the ordinary, while maintenance is part of everyday operations. Have you defined excellence or are you still relying on common sense to maintain or repair?
ISSUE: FISCAL REPORTING
Are you managing by autopsy, waiting for your financial statement? Anticipatory decision making is driven by up to the minute cash and fiscal reporting. There’s no reason 2020 to be waiting for financial statements or week “ending” reports. There are alternatives.
Issue: PRO Forma Development
Have a new idea ready to charge forward, and winging the financials? This is a deadly choice, all the more in the midst of recession or pandemic. With the right numbers and simple format, you can exponentially mitigate the risk of any new venture.
ISSUE: Budgets
Budgets off? No budgets? How does one build an effective budget? Even more, how do you use a budget to its best application?
Miick knows and acts as a positive guide with budgeting. Cash management AND fiscal performance hinges on great budgeting to act as a guide in decision making. We bank dollars, we manage by percentages. Effective budgeting is a terrific tool to have; all the more when aligned with DAILY fiscal tracking systems that anticipate performance! Imagine knowing where you are with purchasing, production, inventory management.
Issue: Fiscal Year
What’s the right fiscal year? Do we run January to December; July to June; 12 calendar months? 13 periods? How do I know? What’s the impact to my company with anyone of these questions? Your choice does make a difference.
Issue: Reporting Cycle
Think you’re in a monthly business cycle? What if shifting focus to daily and accrued tracking could improve cash flow AND profit? If deep recession and pandemic have taught us anything, it’s this, “I need information today!”
Issue: operations accounting
Most accountants don’t even know what operations accounting is. Most controllers can’t manage current systems on daily or accrued to date basis. Miick can show you how! Improve cash position exponentially, ramp profit by 1/3 to 3x times.
Issue: Decision Making
Are you managing by autopsy, waiting for your financial statement? Anticipatory too slow? Too much opinion and not enough data? Too many loud voices? Power vs insight? Are you holding onto habits instead of moving into innovation? Fear vs vision?
Issue: inventory/purchasing
Are you thinking inventory is a management control instead of the asset count it is actually? Have more money on the shelves than in the bank? Think you “know” your inventory total, so no reason to count it? Are you counting on “control” when you’re actually running a 7% or higher POS variance thanks to some depletion count? You’re not alone. And, know, there’s no reason to have to live with cash flow shortage due to inventory or variance as a system. You have an alternatives with Miick.
Issue: NO WAR CHEST, WORKING CAPITAL, OR CASH
There’s no reason to trade cost of goods for cash flow. Frankly, there’s no reason to not have all three, cash flow, profit and a war chest.
ISSUE: Replacement/R&M
What’s the right fiscal year? Do we run January to December; July to June; 12 calendar month? How do I find the cash to replace the equipment or upgrades I need? Is there a way to budget for replacement or repair and maintenance? How does budgeting assist decision making for replacement or R&M?
ISSUE: open books or not
Won’t the staff get angry if they see the books? What happens if I open my books? My three big fears with open books: 1. Anger or fear 2. Jealousy 3. Its no body’s business but mine. Time and again, we’ve found the opposite to be true. The team gets clarity, gets inspired by the trust involved in sharing and most, a play book is opened and measured, data based performance becomes the norm. Find out more.
Issue: profit vs cash flow
“We’re running as tight as I can figure out “how to. We’re still not hitting profit margins and surviving on cash flow! You’re not alone. And, even in recession, you can achieve both, positive cash flow AND profit. Momentum and modeling from most business associations track growth not profit as a leading indicator. You and I need both, cash flow and profit for all the reasons and issues listed above, recession all the more. Let’s get you both!
Issue: communication
I don’t talk to my team about our fiscal situation. We tell our managers the numbers to hit and they still miss. There’s so much drama and guilt or just ignorance about our numbers, how do I even start a discussion with my managers or team? Communication is the primary how to get all things done, and to get radically clear on all things why, how and what.
Issue: PROFIT SHARING
My team is asking me about profit sharing. Do I just give my money away? Simple answer here, no. However, what if you have definitive data points on top and bottom line performance. When hit, profit sharing goes into place. What if instead of fighting wages a higher salary, profit sharing was paid out based on performance and even more, on certification/training and performance to actually earn profit share. We’ve been working with profit sharing models for over 35 years. It works when done right. Find out how.
Issue: sales
How do I drive sales? What the heck are we missing to not hit our numbers If I could just get my crew to be engaged I know we could drive more sales.
