Strategic Planning in the Small Business

Unit 2

HO 2-2

(continued)

Figure 6.1

Management Audit continuedfrom previous

page

Yes No

E. Credit and collection

Do you know your C&C costs?

Is your current policy successful?

Do you review C&C policies regularly?

Do you

have a receivables management policy?

F. Dealing with banks

Is your relationship withi your

lead banker open and friendly?

Do you have access

to more than one source of financing?

G. Cost of money

Do you compare

the cost of money (interest, points)

with your

profit ratios?

Are interest

rates and loan conditions appropriate?

H.

Specific tools

Do you know and

use:

1) Break-even

analysis?

2)

Cash flow projections and analysis?

3) Monthly Profit

and Loss (Income) Statements?

4) Balance sheets?

5) Ratio analysis?

6) Industry

operating ratios?

7) Tax planning?

IV. Personnel

A. Hiring

Has the right mix

of people been hired?

Do you hire from a pool of

qualified applicants?

Do you maintain a

file of qualified applicants?

B. Training

Are your employees suitably trained for their

jobs?

C. Motivating

Do your employees

appear to enjoy what they are doing?

D. Enforcing policies

Does there seem

to be logic and order to what goes on in the

business?

Are reviews and evaluations performed

on schedule?

E. Communicating

Are people informed and brought

in on decisions?

Do you create opportunities for employees

to set their

own

goals?

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