Business experience of opening a store: all kinds of store business optimization and management deta
Chapter 36 Business 3: Small shops can't afford extravagance
Chapter 36
However, on the cash flow forecast form, cash receipts and disbursements should be completely regarded as the standard.Therefore, as long as the sales income is not actually received in cash, it is generally not counted as income; and the amount not paid in cash is not regarded as expenditure.For example, among the fixed costs, the amortization of decoration depreciation basically does not use cash expenditure.Therefore, there is no need to list expenditure items on the cash flow forecast, but it must be listed as an expense item on the profit and loss forecast statement, so there will be differences between the cash flow forecast statement and the profit and loss forecast statement.
How to estimate turnover
Generally speaking, it is very difficult to estimate the turnover within 1 year or 6 months. If it is to estimate the turnover of 10 years, the difficulty will be even higher, because there are too many variables in it, so it is impossible to be careless.Why do you want to estimate the turnover for 10 years, because the factors that will affect the turnover in the 10 years probably include the following:
1 Price inflation index
Every year, the price of goods will rise due to rising raw material prices, rising labor wages, and rising land and housing costs. This rising index is generally known as inflation.
2 Changes in population and households
Due to the construction of residential buildings in the business district, some migrants have moved in, the birth rate has increased or the population has moved out.
3 The decline of the market
The traditional market has no successors, and the consumption trend has changed.
4 Joining of Competing Stores
The market is divided by competing stores.
5 Changes in the road traffic system
Lead to more convenient traffic or frequent obstacles.
6 Changes in consumer behavior or new trends in business development.
The industry is replaced by a new format.
What items are included in marketing expenses
The rent is adjusted according to the provisions of the rental contract.
The interest on the cost of opening a store (loan) should include the interest on the deposit.
The insurance fee (property insurance) is calculated on a monthly basis based on the amount insured.
Some stores are attached to the basement of the building, and the management fee needs to be raised according to the area used.
According to the tax law, materials and office equipment have different depreciation periods, and these should also be included in management expenses.
Salary expenses are adjusted according to the salary adjustment range, but it should be noted that the proportion of salary in management expenses is limited. If it exceeds, productivity will be in crisis. Therefore, the management of salary levels and the proportion of employees and part-time workers need to be adjusted annually to maintain productivity. improve.
There is also the possibility of adjustments in water and electricity costs, because it is difficult to guarantee that there will be no energy crisis in as long as 10 years.In advanced countries such as the United States and Japan, there are currently laws and regulations that require equipment manufacturers to strengthen power-saving facilities.
The promotion fee for a single store is higher, while that for multiple stores is lower, but the promotion fee should not exceed 15% of the turnover.
Newly opened stores can list less repair costs, while old stores more than 3 years old need to be more withholding.
Others, such as telephone, education, stationery, printing, uniforms, packaging, labels for consumables, ink, travel, labor insurance, food allowances, employee bonuses, transportation and miscellaneous expenses, etc.
Second, reducing costs is indirectly increasing profits
What kind of cost awareness should be
Growth in sales and profits is important in modern companies, but at the same time cost awareness cannot be lacking.How much does it cost to sell a large number, whether the cost rate is rising or falling, etc., must always be kept in the brain.
In the contemporary market economy, competitors are crowded and competition for customers is fierce.If the product is not very distinctive, the competition will often be carried out through price. In addition, once the unique product is sold, even if the business is booming at the beginning, similar products will appear soon, and the result will still be determined by the price.
In the distribution world, discount stores are rapidly gaining ground.Specific goods are purchased in large quantities with cash to reduce costs, and then extremely reduce the selling price, which is the so-called small profits but quick turnover. In order to reduce the overall cost of the store, they do not pay attention to the display of goods. Some stores overlap the cartons containing the goods. Some stores omit the packaging.In short, reduce costs thoroughly and attract customers by low price strategy.
In any case, the current competitive atmosphere of enterprises depends on cost to determine the outcome. In this sense, the sense of cost is the most important sense of management for operators. It is no exaggeration.
The basic principle of operation is to obtain the greatest results with the least sacrifice, in other words, to obtain greater sales with less cost.But no matter how the sales increase, the cost is too high, and the operation without the slightest profit is meaningless.On the contrary, only concerned about reducing costs, ignoring the increase in sales can also be nerve-wracking.
Enterprises' efforts to reduce costs are aimed at increasing sales while expanding profit margins.Lower prices by lowering costs, thus attracting customers to our company.That is, efforts to reduce costs in order to increase sales.
Of course, it is not a happy thing to change the operation into price competition. In this way, the large scale will always have the upper hand anyway, and the small and medium-sized enterprises will not have the advantage of winning.Therefore, in order to obtain the greatest results with the least sacrifice, it is closely related to which industry your company is in and which business you enter.Let's not talk about this issue here.
In short, I really hope that when considering costs, business owners should not only look at figures related to costs, but must have an overall perspective of operations including sales.This is the basic difference between the cost management director and the operator.The person in charge of cost management should devote all his efforts to reducing costs, but it is wrong for operators to care about this matter.Some operators just keep yelling: "Cut down the cost, cut down!" It should be considered whether it is going too far.
How to think about the various figures related to costs
1How much direct cost is spent relative to sales
Business owners should look not at direct costs, but at ratios to sales.In this sense, it is most appropriate to use the value-added ratio as an indicator.Added value is the new value generated by business activities.Generally speaking, business including retail and wholesale refers to the total profit from sales (sales minus cost of sales), and industries such as manufacturing refer to processing (production or sales minus material costs and outsourcing fees), The construction industry refers to the amount of completed processing (the amount of completed projects minus material costs, labor costs, and outsourcing costs), and these figures are equivalent to added value.The ratio of value added to sales is the value added ratio.The approximate average value in recent years is 41% to 42% for the manufacturing industry, 27% to 28% for the construction industry, about 18% for the wholesale industry, and about 30% for the retail industry.If the company's numbers are lower than these averages, it means that direct costs are being spent too much.In this case, efforts to reduce the purchase price, reduce the cost of external cooperation, etc., will become an important issue of management.
2 How much was spent on costs other than direct costs
The indicator is the sales management fee.Sales management fees refer to the sales costs of sales staff salaries, packaging and transportation, advertising, reception and communication, etc., plus administrative costs such as clerical staff salaries, directors' remuneration, welfare and health care, office supplies, business travel, communications, and rent.The ratio of sales management fee to sales is the sales management fee ratio.The average manufacturing industry is about 19%, the construction industry is about 14%, the wholesale industry is 16%-17%, and the retail industry is about 28%.If it exceeds this value, it means that the sales management fee is higher than that of other companies.Therefore, a campaign to save money must be launched.
3 The size of personnel expenses
In short, personnel expenses refer to the expenses related to people, including wages, bonuses, welfare and health care expenses, etc.The ratio of personnel expenses to sales, that is, the personnel expense ratio.The average is 17%~18% for manufacturing, 12%~13% for construction, over 6% for wholesale, and over 13% for retail.When the personnel cost is too high, since wages cannot be reduced, the only option is to reduce personnel or increase sales based on existing personnel.That is to say, to increase labor productivity, we must pay attention to how much each person has improved.
The above three figures are the most important figures that operators should look at.In addition, the finer details are the ratio of interest payment (financial cost), the ratio of advertising and publicity expenses, and the ratio of welfare and health care expenses.Through various costs, various indicators can be seen.
There is also an indispensable point of view for the cost perception of the operator, that is, the unit hour cost and results, that is, how much the company spends per hour and how much results it obtains.Time is an asset that is equally owned by everyone, and the cost and results should be viewed from the perspective of how to effectively use this asset.
Specifically, the sales and gross profit and related cost figures are divided by the actual hours worked.It is important to constantly check the movement of the entire company and each employee from its viewpoint.When you look around the company with this feeling, you will be surprised to find that time is wasted.For example, five o'clock is the off-duty time, and work efficiency often begins to decline around 04:30.In fact, it is no exaggeration to say that the actual situation of almost all enterprises is the same.
If five o'clock is the off-duty time, then it is the original attitude for all employees to go all out for get off work until five o'clock.But in fact, I have already started tidying up about 30 minutes ago, chatting with colleagues, and these 30 minutes have hardly achieved anything.
What about overtime?Of course, some people continue to go all out, but there are also some people who procrastinate when they work overtime.Such people generally do not need to work overtime but are working overtime, which is nothing more than "living overtime" in order to earn overtime pay.If you check carefully, you will find that the results are only about 1/2 or 3/[-] of the daytime.As a result, overtime pay has caused personnel expenses to soar, greatly suppressing profits, and leading to the bankruptcy of so-called personnel expenses.
It is more important to pay strict attention to the daily reality of cost per hour and results than the numbers that appear on the surface.
In order to develop this feeling, a business owner who is determined to be successful may wish to first calculate the personnel cost of his unit hour, if possible, take 10 minutes, no, calculate it in units of 1 minute.Moreover, it is also calculated how many results are produced per unit hour.Also, check often to see if you're sprinting all the way to the end of the day or if you're procrastinating and working overtime.
How to collect payment in advance from commodity buyers
For products with high unit value or large batches, production enterprises can collect a certain amount of purchase loans from commodity buyers in advance, which is also a channel for enterprises to raise funds.Advance payment has its objective basis in our country.From the perspective of consumers, with the continuous development of my country's economy and the continuous improvement of people's living standards, the savings in their hands continue to increase. Now the total urban and rural savings in the country have reached more than 1 trillion yuan. This part of the funds is temporarily idle. Part of the potential purchasing power, once people have their favorite products, they will buy them. They need high-quality and low-cost commodities to improve their living standards.In this situation, for some commodities that are in short supply, if the production enterprises improve the standard of living.In this situation, for some commodities that are in short supply, if the production enterprise can guarantee to provide consumers with quality and quantity within a certain period of time, and give a discount equivalent to deposit interest on the price, consumers will be willing to sell them. Deposits are withdrawn as an advance deposit interest discount for purchasing goods, and consumers will be willing to withdraw their deposits as an advance payment for purchasing goods and prepay to enterprises, so that social idle funds can be put into production.From the perspective of production enterprises, in order to obtain the supply of raw materials and equipment in short supply, enterprises are sometimes willing to prepay a certain purchase price to the supplier.Advance payment is helpful to solve the contradiction of shortage of funds for enterprises with insufficient working capital or insufficient funds for expanded reproduction.
In order for an enterprise to successfully raise funds through advance payment, it must meet the following conditions:
It is necessary to obtain a good business reputation through operation, so that customers have a sense of dependence.
Make a production plan for the product.The product output is used as the upper limit of the advance payment to ensure that the products are provided to the predetermined customers on schedule.
Raw materials, fuel, power, etc. are adequately guaranteed, and the normal production of the enterprise cannot be affected due to insufficient materials, and the order of predetermined products cannot be affected.
Make product samples.Buyers want to order by looking at samples, and there must be samples for users to appreciate.The quality of the samples should be consistent with the bulk of products to be produced in the future, and it should not be "gimmicking and selling dog meat".If the product style, specification, model, and quality at the time of delivery do not match the sample, the customer should be allowed to return the product and refund the advance payment.Compensation for economic losses.
There is a visa issued by the issuing authority, which legalizes the advance collection activities, legally protects the legitimate rights and interests of both buyers and sellers, and supervises the performance of contract terms by both parties.
A pre-purchase contract must be signed to determine the rights and obligations of both parties in the form of an economic contract.The terms of the contract are drawn up by the sales unit and authenticated by the issuing authority.
How to buy goods on credit
When an enterprise has insufficient funds and is in urgent need of labor objects and labor tools, it can adopt the method of credit purchase to obtain the needed commodities.When an enterprise purchases goods on credit, it first obtains the goods from the seller, and does not pay the seller in cash, but pays off the goods within a certain period of time, that is, the deferred payment of the goods.In this process, since there is a longer or shorter time interval from the purchase of goods on credit to the payment of the goods, for the enterprise that buys goods on credit, it is actually equivalent to obtaining a loan, but the loan is not obtained by the bank, but by the bank. Obtained from businesses that sell goods.
Merchandise sold on credit is a form of commercial credit, also known as outstanding credit.This kind of credit is usually provided after the seller has fully investigated and understood the credit reliability of the buyer.The only evidence the seller has after providing credit is the buyer's purchase order, an invoice showing that the goods have been delivered, and a record registering the accounts receivable ledger.If the seller purchases goods on credit for safety reasons, the seller can ask the seller to issue a statement himself, and the buyer promises.These papers are commercial papers.Commercial paper can be transferred and mortgaged, and can also be discounted, so that the seller does not have to worry about the shortage of funds due to the extension of credit.
Enterprises can use credit purchases to obtain urgently needed commodities and alleviate the problem of insufficient funds for a certain period of time.At the same time, when enterprises purchase goods on credit, they must consider the cost of credit purchases.Because the amount of goods purchased on credit is paid according to the sales price of the goods.On the surface, it seems that the debtor has taken up the creditor's funds "for nothing". In fact, the enterprise that provides the credit has added the interest of this amount to the price, and the interest has been passed on to the buyer along with the price.When some enterprises sell goods on credit, they stipulate the method of cash discount, that is, if the buyer pays in advance before the payment due, he can enjoy a certain discount (discount) according to the invoice amount.If the purchaser can repay the loan in advance, he can reduce an expenditure. If he cannot repay the loan in advance, he can only give up the preferential price and pay more.However, sometimes in order to raise funds, enterprises often prolong the occupation of the payment for goods, and use the funds to carry out production turnover and obtain preferential prices. It is necessary to analyze specific issues and see how to do it is more beneficial to the interests of the enterprise, which is beneficial to the enterprise. Sufficient production funds can be raised.
How to control costs
Diligence and frugality can make people successful and rich, and can also make a store a famous or old store.
Diligence means working harder than others, as long as you have perseverance, you will not be worse than others, and thrift is not a dime, it is to control funds through business analysis.
Whenever we discuss business management issues with the store owner, we emphasize the need to make an analysis form of the funds every month, which includes: project, budget, actual expenditure amount, difference, reason, owner's opinion (countermeasures), etc., and Implement a tracking system so that waste can be eliminated.
There should be six basic concepts to implement fund control based on monthly fund analysis:
The total salary of the clerk shall not exceed half of the funds: 100% of the total salary avoidance of the total amount < 50%
The ratio of personnel expenses to total sales should be less than 6%: personnel expenses/total sales 100%<6%
The ratio of expenses to total sales should be within 15%: expenses/total sales 100%<15%
The ratio of funds to total sales benefits should be maintained within 80%: funds/total sales benefits 100%<80%
The ratio of fixed expenses to funds should be more than 85%: fixed expenses/funds 100%>85%
The ratio of variable expenses to total expenses should be less than 15%: variable expenses/, 100% of total expenses<15%
Trains must have tracks, airplanes must follow fixed routes, and stores must be controlled according to the above six points.
(End of this chapter)
However, on the cash flow forecast form, cash receipts and disbursements should be completely regarded as the standard.Therefore, as long as the sales income is not actually received in cash, it is generally not counted as income; and the amount not paid in cash is not regarded as expenditure.For example, among the fixed costs, the amortization of decoration depreciation basically does not use cash expenditure.Therefore, there is no need to list expenditure items on the cash flow forecast, but it must be listed as an expense item on the profit and loss forecast statement, so there will be differences between the cash flow forecast statement and the profit and loss forecast statement.
How to estimate turnover
Generally speaking, it is very difficult to estimate the turnover within 1 year or 6 months. If it is to estimate the turnover of 10 years, the difficulty will be even higher, because there are too many variables in it, so it is impossible to be careless.Why do you want to estimate the turnover for 10 years, because the factors that will affect the turnover in the 10 years probably include the following:
1 Price inflation index
Every year, the price of goods will rise due to rising raw material prices, rising labor wages, and rising land and housing costs. This rising index is generally known as inflation.
2 Changes in population and households
Due to the construction of residential buildings in the business district, some migrants have moved in, the birth rate has increased or the population has moved out.
3 The decline of the market
The traditional market has no successors, and the consumption trend has changed.
4 Joining of Competing Stores
The market is divided by competing stores.
5 Changes in the road traffic system
Lead to more convenient traffic or frequent obstacles.
6 Changes in consumer behavior or new trends in business development.
The industry is replaced by a new format.
What items are included in marketing expenses
The rent is adjusted according to the provisions of the rental contract.
The interest on the cost of opening a store (loan) should include the interest on the deposit.
The insurance fee (property insurance) is calculated on a monthly basis based on the amount insured.
Some stores are attached to the basement of the building, and the management fee needs to be raised according to the area used.
According to the tax law, materials and office equipment have different depreciation periods, and these should also be included in management expenses.
Salary expenses are adjusted according to the salary adjustment range, but it should be noted that the proportion of salary in management expenses is limited. If it exceeds, productivity will be in crisis. Therefore, the management of salary levels and the proportion of employees and part-time workers need to be adjusted annually to maintain productivity. improve.
There is also the possibility of adjustments in water and electricity costs, because it is difficult to guarantee that there will be no energy crisis in as long as 10 years.In advanced countries such as the United States and Japan, there are currently laws and regulations that require equipment manufacturers to strengthen power-saving facilities.
The promotion fee for a single store is higher, while that for multiple stores is lower, but the promotion fee should not exceed 15% of the turnover.
Newly opened stores can list less repair costs, while old stores more than 3 years old need to be more withholding.
Others, such as telephone, education, stationery, printing, uniforms, packaging, labels for consumables, ink, travel, labor insurance, food allowances, employee bonuses, transportation and miscellaneous expenses, etc.
Second, reducing costs is indirectly increasing profits
What kind of cost awareness should be
Growth in sales and profits is important in modern companies, but at the same time cost awareness cannot be lacking.How much does it cost to sell a large number, whether the cost rate is rising or falling, etc., must always be kept in the brain.
In the contemporary market economy, competitors are crowded and competition for customers is fierce.If the product is not very distinctive, the competition will often be carried out through price. In addition, once the unique product is sold, even if the business is booming at the beginning, similar products will appear soon, and the result will still be determined by the price.
In the distribution world, discount stores are rapidly gaining ground.Specific goods are purchased in large quantities with cash to reduce costs, and then extremely reduce the selling price, which is the so-called small profits but quick turnover. In order to reduce the overall cost of the store, they do not pay attention to the display of goods. Some stores overlap the cartons containing the goods. Some stores omit the packaging.In short, reduce costs thoroughly and attract customers by low price strategy.
In any case, the current competitive atmosphere of enterprises depends on cost to determine the outcome. In this sense, the sense of cost is the most important sense of management for operators. It is no exaggeration.
The basic principle of operation is to obtain the greatest results with the least sacrifice, in other words, to obtain greater sales with less cost.But no matter how the sales increase, the cost is too high, and the operation without the slightest profit is meaningless.On the contrary, only concerned about reducing costs, ignoring the increase in sales can also be nerve-wracking.
Enterprises' efforts to reduce costs are aimed at increasing sales while expanding profit margins.Lower prices by lowering costs, thus attracting customers to our company.That is, efforts to reduce costs in order to increase sales.
Of course, it is not a happy thing to change the operation into price competition. In this way, the large scale will always have the upper hand anyway, and the small and medium-sized enterprises will not have the advantage of winning.Therefore, in order to obtain the greatest results with the least sacrifice, it is closely related to which industry your company is in and which business you enter.Let's not talk about this issue here.
In short, I really hope that when considering costs, business owners should not only look at figures related to costs, but must have an overall perspective of operations including sales.This is the basic difference between the cost management director and the operator.The person in charge of cost management should devote all his efforts to reducing costs, but it is wrong for operators to care about this matter.Some operators just keep yelling: "Cut down the cost, cut down!" It should be considered whether it is going too far.
How to think about the various figures related to costs
1How much direct cost is spent relative to sales
Business owners should look not at direct costs, but at ratios to sales.In this sense, it is most appropriate to use the value-added ratio as an indicator.Added value is the new value generated by business activities.Generally speaking, business including retail and wholesale refers to the total profit from sales (sales minus cost of sales), and industries such as manufacturing refer to processing (production or sales minus material costs and outsourcing fees), The construction industry refers to the amount of completed processing (the amount of completed projects minus material costs, labor costs, and outsourcing costs), and these figures are equivalent to added value.The ratio of value added to sales is the value added ratio.The approximate average value in recent years is 41% to 42% for the manufacturing industry, 27% to 28% for the construction industry, about 18% for the wholesale industry, and about 30% for the retail industry.If the company's numbers are lower than these averages, it means that direct costs are being spent too much.In this case, efforts to reduce the purchase price, reduce the cost of external cooperation, etc., will become an important issue of management.
2 How much was spent on costs other than direct costs
The indicator is the sales management fee.Sales management fees refer to the sales costs of sales staff salaries, packaging and transportation, advertising, reception and communication, etc., plus administrative costs such as clerical staff salaries, directors' remuneration, welfare and health care, office supplies, business travel, communications, and rent.The ratio of sales management fee to sales is the sales management fee ratio.The average manufacturing industry is about 19%, the construction industry is about 14%, the wholesale industry is 16%-17%, and the retail industry is about 28%.If it exceeds this value, it means that the sales management fee is higher than that of other companies.Therefore, a campaign to save money must be launched.
3 The size of personnel expenses
In short, personnel expenses refer to the expenses related to people, including wages, bonuses, welfare and health care expenses, etc.The ratio of personnel expenses to sales, that is, the personnel expense ratio.The average is 17%~18% for manufacturing, 12%~13% for construction, over 6% for wholesale, and over 13% for retail.When the personnel cost is too high, since wages cannot be reduced, the only option is to reduce personnel or increase sales based on existing personnel.That is to say, to increase labor productivity, we must pay attention to how much each person has improved.
The above three figures are the most important figures that operators should look at.In addition, the finer details are the ratio of interest payment (financial cost), the ratio of advertising and publicity expenses, and the ratio of welfare and health care expenses.Through various costs, various indicators can be seen.
There is also an indispensable point of view for the cost perception of the operator, that is, the unit hour cost and results, that is, how much the company spends per hour and how much results it obtains.Time is an asset that is equally owned by everyone, and the cost and results should be viewed from the perspective of how to effectively use this asset.
Specifically, the sales and gross profit and related cost figures are divided by the actual hours worked.It is important to constantly check the movement of the entire company and each employee from its viewpoint.When you look around the company with this feeling, you will be surprised to find that time is wasted.For example, five o'clock is the off-duty time, and work efficiency often begins to decline around 04:30.In fact, it is no exaggeration to say that the actual situation of almost all enterprises is the same.
If five o'clock is the off-duty time, then it is the original attitude for all employees to go all out for get off work until five o'clock.But in fact, I have already started tidying up about 30 minutes ago, chatting with colleagues, and these 30 minutes have hardly achieved anything.
What about overtime?Of course, some people continue to go all out, but there are also some people who procrastinate when they work overtime.Such people generally do not need to work overtime but are working overtime, which is nothing more than "living overtime" in order to earn overtime pay.If you check carefully, you will find that the results are only about 1/2 or 3/[-] of the daytime.As a result, overtime pay has caused personnel expenses to soar, greatly suppressing profits, and leading to the bankruptcy of so-called personnel expenses.
It is more important to pay strict attention to the daily reality of cost per hour and results than the numbers that appear on the surface.
In order to develop this feeling, a business owner who is determined to be successful may wish to first calculate the personnel cost of his unit hour, if possible, take 10 minutes, no, calculate it in units of 1 minute.Moreover, it is also calculated how many results are produced per unit hour.Also, check often to see if you're sprinting all the way to the end of the day or if you're procrastinating and working overtime.
How to collect payment in advance from commodity buyers
For products with high unit value or large batches, production enterprises can collect a certain amount of purchase loans from commodity buyers in advance, which is also a channel for enterprises to raise funds.Advance payment has its objective basis in our country.From the perspective of consumers, with the continuous development of my country's economy and the continuous improvement of people's living standards, the savings in their hands continue to increase. Now the total urban and rural savings in the country have reached more than 1 trillion yuan. This part of the funds is temporarily idle. Part of the potential purchasing power, once people have their favorite products, they will buy them. They need high-quality and low-cost commodities to improve their living standards.In this situation, for some commodities that are in short supply, if the production enterprises improve the standard of living.In this situation, for some commodities that are in short supply, if the production enterprise can guarantee to provide consumers with quality and quantity within a certain period of time, and give a discount equivalent to deposit interest on the price, consumers will be willing to sell them. Deposits are withdrawn as an advance deposit interest discount for purchasing goods, and consumers will be willing to withdraw their deposits as an advance payment for purchasing goods and prepay to enterprises, so that social idle funds can be put into production.From the perspective of production enterprises, in order to obtain the supply of raw materials and equipment in short supply, enterprises are sometimes willing to prepay a certain purchase price to the supplier.Advance payment is helpful to solve the contradiction of shortage of funds for enterprises with insufficient working capital or insufficient funds for expanded reproduction.
In order for an enterprise to successfully raise funds through advance payment, it must meet the following conditions:
It is necessary to obtain a good business reputation through operation, so that customers have a sense of dependence.
Make a production plan for the product.The product output is used as the upper limit of the advance payment to ensure that the products are provided to the predetermined customers on schedule.
Raw materials, fuel, power, etc. are adequately guaranteed, and the normal production of the enterprise cannot be affected due to insufficient materials, and the order of predetermined products cannot be affected.
Make product samples.Buyers want to order by looking at samples, and there must be samples for users to appreciate.The quality of the samples should be consistent with the bulk of products to be produced in the future, and it should not be "gimmicking and selling dog meat".If the product style, specification, model, and quality at the time of delivery do not match the sample, the customer should be allowed to return the product and refund the advance payment.Compensation for economic losses.
There is a visa issued by the issuing authority, which legalizes the advance collection activities, legally protects the legitimate rights and interests of both buyers and sellers, and supervises the performance of contract terms by both parties.
A pre-purchase contract must be signed to determine the rights and obligations of both parties in the form of an economic contract.The terms of the contract are drawn up by the sales unit and authenticated by the issuing authority.
How to buy goods on credit
When an enterprise has insufficient funds and is in urgent need of labor objects and labor tools, it can adopt the method of credit purchase to obtain the needed commodities.When an enterprise purchases goods on credit, it first obtains the goods from the seller, and does not pay the seller in cash, but pays off the goods within a certain period of time, that is, the deferred payment of the goods.In this process, since there is a longer or shorter time interval from the purchase of goods on credit to the payment of the goods, for the enterprise that buys goods on credit, it is actually equivalent to obtaining a loan, but the loan is not obtained by the bank, but by the bank. Obtained from businesses that sell goods.
Merchandise sold on credit is a form of commercial credit, also known as outstanding credit.This kind of credit is usually provided after the seller has fully investigated and understood the credit reliability of the buyer.The only evidence the seller has after providing credit is the buyer's purchase order, an invoice showing that the goods have been delivered, and a record registering the accounts receivable ledger.If the seller purchases goods on credit for safety reasons, the seller can ask the seller to issue a statement himself, and the buyer promises.These papers are commercial papers.Commercial paper can be transferred and mortgaged, and can also be discounted, so that the seller does not have to worry about the shortage of funds due to the extension of credit.
Enterprises can use credit purchases to obtain urgently needed commodities and alleviate the problem of insufficient funds for a certain period of time.At the same time, when enterprises purchase goods on credit, they must consider the cost of credit purchases.Because the amount of goods purchased on credit is paid according to the sales price of the goods.On the surface, it seems that the debtor has taken up the creditor's funds "for nothing". In fact, the enterprise that provides the credit has added the interest of this amount to the price, and the interest has been passed on to the buyer along with the price.When some enterprises sell goods on credit, they stipulate the method of cash discount, that is, if the buyer pays in advance before the payment due, he can enjoy a certain discount (discount) according to the invoice amount.If the purchaser can repay the loan in advance, he can reduce an expenditure. If he cannot repay the loan in advance, he can only give up the preferential price and pay more.However, sometimes in order to raise funds, enterprises often prolong the occupation of the payment for goods, and use the funds to carry out production turnover and obtain preferential prices. It is necessary to analyze specific issues and see how to do it is more beneficial to the interests of the enterprise, which is beneficial to the enterprise. Sufficient production funds can be raised.
How to control costs
Diligence and frugality can make people successful and rich, and can also make a store a famous or old store.
Diligence means working harder than others, as long as you have perseverance, you will not be worse than others, and thrift is not a dime, it is to control funds through business analysis.
Whenever we discuss business management issues with the store owner, we emphasize the need to make an analysis form of the funds every month, which includes: project, budget, actual expenditure amount, difference, reason, owner's opinion (countermeasures), etc., and Implement a tracking system so that waste can be eliminated.
There should be six basic concepts to implement fund control based on monthly fund analysis:
The total salary of the clerk shall not exceed half of the funds: 100% of the total salary avoidance of the total amount < 50%
The ratio of personnel expenses to total sales should be less than 6%: personnel expenses/total sales 100%<6%
The ratio of expenses to total sales should be within 15%: expenses/total sales 100%<15%
The ratio of funds to total sales benefits should be maintained within 80%: funds/total sales benefits 100%<80%
The ratio of fixed expenses to funds should be more than 85%: fixed expenses/funds 100%>85%
The ratio of variable expenses to total expenses should be less than 15%: variable expenses/, 100% of total expenses<15%
Trains must have tracks, airplanes must follow fixed routes, and stores must be controlled according to the above six points.
(End of this chapter)
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