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Subject:
Turn Around Systems
Category: Business and Money > Small Businesses Asked by: wrwoodpecker-ga List Price: $50.00 |
Posted:
17 Sep 2004 16:04 PDT
Expires: 17 Oct 2004 16:04 PDT Question ID: 402710 |
I have a small business that was not doing well the last couple years. I have 4 employees and a few part timers. My business is in CNC Automation (CNC machine tools) I had an analyst from a "turnaround" company IPA (International Profit Associates) in It was actually relative good to talk to somebody about my business problems. I believe it helped. I understand that I need to change things However, IPA wants roughly $30,000 for initially installing a system that is able to give me a "grip" on my finances which, besides accountability of my people and lack of a marketing plan they found as the biggest problem. The things they found are valid but I believe they can be fixed in a lower cost way for a small business like mine. Here are my questions: What alternatives do I have to IPA? Right now I am thinking surrounding myself with a few individual experts (accounting, IT person, business and marketing consultants, even this forum her) to get professional answers to individual problems that I am aware of Does anybody know what financial system (reporting system, analytical accounting system, MIS system) and or business planning system or tools they install or recommend for a small business like mine? Can these be purchased somewhere separately? Can something comparable be purchased and installed (If it's comparable elaborate why it does the same, or even better, convince me that your alternative approach is better) Again, I am willing to have outside help where needed but it must be at a much smaller financial scale. We are using Peachtree. I am certainly willing to upgrade to the latest version which includes crystal report, a 3rd party reporting system. However, Crystal report does no analytical accounting like for example pFAAS. However, can somebody tell me what would make the most sense for me? (Since I also need to integrate my business and marketing planning in a 2nd step, I do NOT want to end up with 14 different little $29 programs that are not integrated with each other or that require that I hire an IT guy to keep them running. I believe I want everything working around Peachtree and or Excel) Regarding the financial system, I want to answer simple questions about future cash available How much profit I will make on something Plus I would like to be able to understand and observe better some typical balance stuff (ratio analysis, balance sheet analyses with explanations for ?dummies?), stuff that somebody who would purchase the business or would lend us money would look at. However, I am totally open in admitting that I might not know what I need. What is your proposal what a small business needs to have a grip on the finances (on a daily, weekly monthly ... base) Again, in step 2 I would like to integrate business, marketing and sales planning as well Which program should I choose and why? There is one additional task. right now I have a prospect and customer database in Excel AND one a database in Peachtree. Who can help to get them together (This could be answered later as well Thanks |
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There is no answer at this time. |
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Subject:
Re: Turn Around Systems
From: frde-ga on 18 Sep 2004 06:09 PDT |
It sounds to me as if a vulture wants to sell you software. If, as it appears, you have some expensive CNC machines, four operators plus yourself, and a few people coming in to help with packing and feeding transactions into the computer, then you have a pretty controllable operation. For each job, you can easily identify the cost of raw materials. Similarly you know the machine time, and therefore the labour time. (Sure, setup is another overhead, but you'll know it by gut instinct) Pricing for you is dead simple, if it does not cover variable costs, then don't do it, and if it does not go some way towards covering the costs of the building, the 'part-timers' and the finance on the CNC machines, then ... - only take it on if you (and your crew) would otherwise be idle The real emphasis that I saw in your question was 'Marketing' As it happens, I know what that really means, and I suspect that you and the software salesman are using it in its modern per-'version'. If you need to increase sales, then you will already know that, if you need to increase 'quality sales' (ie: sell to people prepared to pay a premium) then you also know that. A computer system will not help /you/ (repeat YOU) with increasing sales - it might tempt you into wasted mail shots A salesman ...might... help you, but they are expensive and unreliable - also they are seriously likely to underprice sales, just to boost earnings If you have any possibility of increasing sales to existing (good) customers, then look at that first, if you can improve your 'client - company' interface, like making sure the telephone is answered by somebody sensible, then go for that. If your setup looks snappy, and is reliable to deal with, you'll retain old clients, and 'accidental new clients' will prefer you to the competition. When it comes to stripping some contact names and addresses from Peachtree to Excel, post the files on the net somewhere. Finally, puffing up the balance sheet is only a cosmetic job, for selling out or borrowing (against your house) from the bank. My understanding is that these 'integrated systems' only pay off for Large companies where they have lost control. I doubt that your machine shop is a 'chaos zone' |
Subject:
Re: Turn Around Systems
From: lxndr-ga on 06 Oct 2004 12:04 PDT |
First of all I completely agree with 'frde-ga' last thing you want to do is buy some state of the art automated system that is way beyond what your company (apparentely) needs. If you are looking to streamline your financial operations, check out financial packages like Exact. There are a lot of (much much cheaper) alternatives to a $30k system! I'd advise you to check out your nearest university, get in touch with a big business/marketing stu'dy association and hire a couple of students to do market research for you (could do the same thing with a couple of financial students?) This will give you no final solution but more of a second opinion before deciding to go on with installing systems etc. Good luck! |
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