Create your own effective system resource management of the enterprise in order to optimize production. To do this properly redistribute current assets of the enterprise. This will help to increase the supply of liquid funds and reduce the amount of illiquid industrial stocks.
Analyze the assets of the enterpriseto lower its receivables. In addition, to increase the effectiveness of financial and economic activities, it is necessary to plan all financial activities and monitor execution of financial plans.
Use financial stabilization mechanism, which is a system of measures aimed at reduction of financial liabilities and an increase in cash assets securing those obligations. This will reduce the amount of fixed costs (including maintenance costs managerial staff), lower level conditionally-variables costs, extend the timing of accounts payable for commodity operations.
Increase the amount of monetary assets due to the refinancing of receivables (factoring, forfeiting, forced recovery), speed up its turnover (by reducing the terms of a commercial loan). Optimization of inventory by establishing standards for the inventory of the enterprise by the method of technical and economic calculations. Reduce the amounts of insurance, warranty and seasonal inventory.
Achieve increase in sales volume, profit margins and level of profitability by intensive use of current assets of your enterprise. Direct efforts to increase the productivity of the staff. Aim to expand market of products (goods). Spend a competent advertising campaign and attract more large investors and creditors.
Advice 2: How to increase the turnover
Before each economic entity, be it a Bank, company or individual entrepreneur, the problem of turnover of working capital is quite acute. After all, how effectively and quickly carried out their cycle, depends on the profitability of production activities.
In order to increase turnover, you need to pay attention to two factors: the volume of trade and size of working capital. To increase the turnover should improve merchandising and to normalize the distribution of working capital. This requires shorter intervals between deliveries, to reduce the intensity of production, to establish progressive norms of material consumption, to buy them in smaller batches to avoid deposits, reduce the cost of transportation of goods, to improve the organization of storage facilities, to eliminate unnecessary stocks.
In order to avoid large stocks of finished goods in the warehouse, and often it is because of this slowed turnover, it is necessary to plan the production in accordance with the signed agreements, to comply with the terms of production, strengthen the promotion of products on the market, reduce the cost of production, ie, active use of marketing solutions.
Large balances on hand and in transit often occur as a result of irregular development of retail trade, violations of cash discipline: irregular delivery of revenue to the Bank, the storage of large balances unclaimed cash at the box office, etc.
Remains of other commodity-material values are the result of the purchase or production of unwanted materials, fuel, raw materials. Reduce their stocks is possible if to provide wholesale distribution, uniform and frequent delivery. To normalize the rest of the money in the cashier, you should develop the retail trade.
With regard to funds in Bank accounts, it is also necessary to monitor their residues. All available funds and better transfer to repay loans, invest deposits, securities, lending to legal entities and individuals. Accelerate the turnover would release significant amounts of production, and hence increase its volume without additional financial investments.