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Old 14th April 2009, 06:29 PM   #1

Join Date: Jan 2006
Location: Houston, Texas
Posts: 49

Default Dismantling Your Business In These Tough Economic Times?

Have you ever considered tearing up your business only to put it back together again?

Based on the notion that we have been given a reprieve from the current global economic woes of the last year, business now has second chance to redeem itself and become like that T.V. show of the seventies.

“We can rebuild him, we can make him better than he was, better, stronger, faster”. Remember the “The Six Million Dollar Man”?

We now have the opportunity to rebuild our businesses via the lessons of the last year. We must respect the fact that we are not out of the woods yet, where we still have credit problems, high unemployment rates as well as weak expansion outlooks for the next two years, but we must at least use what we have learned and better our ability to survive and in some cases, thrive in this economy.

Yes, we can thrive in this economy. I have at least four clients from 2008 that have not only survived this turbulent economy but have gained profitability. Their businesses have done so well that two clients have purchased their competitors and two clients tout greater profits despite significant decreases in sales over their previous years.

Part of their success comes from taking their businesses apart and rebuilding their organizations from the ground up. We are not talking about hiring better skilled workers or laying off workers or even getting lucky and landing the big fish.

We are talking about a total dismantling of business philosophies, management styles and old ways of doing things that obviously do not work and will not work in this new economy.

More often than not, business owners enjoy sharing their insightful books and business philosophies with me that they have gathered over the years that to this date have not helped anyone other than the authors of those books buy bigger houses.

Books on business management are helpful if we use them and put them into practice but the one issue I hear often is, “we do not know how to implement what we have just read”, that is where my experience in dismantling a business and putting it back together comes into consideration.

My years of dismantling businesses via my operational accounting methodologies have allowed me to develop proven client results that not only re-organize business at its core, but also allow existing businesses to thrive in the current economic turmoil.

As I have written numerous articles and blogs about my expertise in Operational Accounting Consulting, the core of business is its accounting practices, where re-organizing a business’ core is a dissection of its accounting procedures.

In other words, we can trace all good or bad business initiatives, good or bad best practices and efficient or inefficient operations to how we manage our accounting processes. Simply put, business operates relative to financial data. Good or bad, financial data tells what to do with what we have. If this information is incorrect, which it usually is, then our operations are incorrect, inefficient, etc, etc.

A great example here is how often business runs to the bank for a loan. Over fifty percent of small business in the U.S. use bank loans to fund weekly payrolls, hence the current increase in job losses. Businesses relied so much on bank loans to fund employment that when credit on those loans ran out, so did the ability to employ.

My point here is that a clearer understanding of business finances via a dissection of accounting processes would allow for a true understanding of business financial postures. This is how Operational Accounting truly affects business.

The clients I mentioned earlier were tied to bank loans as well as interest payments on those loans, where when we analyzed their businesses, we realized that the cash each client required to operate week after week was actually imbedded in better accounting and operating efficiencies gained when we dismantled their business.

One of these clients actually wanted to make a half-million dollar capital asset purchase instead of investing in consulting services in the hopes of making his operation more efficient. When we dissected this client’s business via my Operational Accounting methodologies, we found that not only did this business not have the customer base to sustain the required increase in sales needed to make the monthly note on newly purchased capital assets, but his quest of gaining efficiencies was not in capital assets but in restructuring his processes.

Today, this client’s business is much more profitable despite lower sales, much more efficient and much better prepared to survive the tough economic times ahead. The rationalization of purchasing capital equipment became clearer once we analyzed his business via my Operational Accounting methods.

As there are many articles and philosophies about Operational Accounting, none has been able to match what I do via my particular approach to Operational Accounting. As I have spent years specializing and perfecting the true definition of Operational Accounting, my proof is in the success of my clients that can achieve success after dismantling their businesses.

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