Running a business
Many businesses are run without adequate information being available to check trend in their vital areas, e.g. marketing, money and managerial efficiency. It is essential to look critically at all aspects of the business in order to maximise profits and reduce inefficiency. Regular meaningful information is required on which management can concentrate. This will vary according to the proprietor’s business but will often concentrate on debtors, creditors, cash, sales and orders. Proprietors often have the feeling that the business should be ‘doing better’ but are unable to identify what is going wrong. Sometimes there is the worrying phenomenon of a steadily increasing work programme coupled with a persistently reducing bank balance or rising overdraft. Some useful ways of checking the position and of identifying problem areas are given below.