Strategic Planning in the Small Business

Figure 6.1

Management

Audit continuedfrom previouspage

Yes

No

B.Inventory control

Do

you know what your inventory turnover

is?

Is slow-moving stock managed?

Have you established

rational reordering policies?

C. Scheduling

Do goods

and materials move through the

business without

tie-ups

and problems?

Do

you know how long each job

should take?

D.Quality control

Are inferior incoming materials returned

to vendors?

Are reject rates

minimized?

Do you have a "do-it-right-the-first-time"

policy?

E. Business growth

Has your

business grown at lea.t above

the rnte of inflation?

Have you met your

asset growth, sales, and profit goals?

F. Site location

Do you have the right

business location?

G. Insurance

Do you have an

nnual insurance review?

Are the

proper risks to your business

(and to yourself) covered?

Do you put your insurance package out

to bid every year?

HI. Financial

A.Bookkeeping

and accounting

Are your books adequate?

Are records easy to come by?

Can you get information

when you need

it?

Do you have monthly Profit and

Loss (Income) Statements?

Do you

have annual financial statements?

B.Budgeting

Do you use

a cash flow budget?

Do you u. deviation analysis monthly?

Are

capital equipment purchases budgeted?

C. Cost

control

Are cost

items managed?

Are high cost items treated

separately?

Is the budget used as the

primary cost control tool?

D. Raising money

Have you been successful in

raising capital when it was needed?

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