This month, we’re focusing on the growth of your business to celebrate our release of three new bundles of COATS Staffing Software and options that capture the three different stages of a business’s growth. Yesterday, we examined something that can make the difference between growth and an early death at any stage: having the right funding. Today, we’re looking at something that’s just as important, no matter what stage you’re in: a clear view of where your business is. Specifically, the one provided by COATS’ Management Business Advisor (MBA).
Regardless of whether you’re just starting up or celebrating your 30th anniversary, the MBA can keep you informed on the state of your business, giving you the data you need to make decisions. You can see where you stand with regard to:
Accounts receivable – This module breaks your receivables down by 30-day increments, so you can see how much of your outstanding invoices are 30 days old, vs. 60, 90 or 120. Double-clicking the number underneath the 30-60-90-120 designation brings up a list of all the clients in this category and the amounts they owe. Not only can this give you a good idea which clients to nurture relationships with and which to let go, it can also let you know you might need additional funding, if too many receivables are too old.
Productivity – You can see how much revenue each of your people is responsible for, how much expenditure they’re responsible for and, most importantly, how much profit they’re responsible for. That last item can show you which clients are worth holding on to and which you might want to let go. It’s easy to cling to large or difficult clients with, “But we bill $X with them every year,” but when you see that the profit they bring in is barely more than that generated by a smaller, much more manageable client, it might make it easier to let them find another staffing firm.
Cash flow – This gives you a great view of how much money you have coming in vs. going out; it’s a more comprehensive view of the stuff hinted at in the “Accounts receivable” section, because this also covers payables. By adjusting the dates and date ranges when you start up the MBA, you can see how your payables are changing over time, as well as your receivables. Again, this can show you which accounts (payable or receivable) to reconsider, as well as whether or not you might need additional funding.
Assignment activity – In this module, you can see what kind of markup spread you have. (The MBA is markup-based, so when you’re starting it up, select the highest markup you charge so you can see a complete spread.) You can also see how your sales conversions are going; the numbers in “Prospects,” “Clients” and “New” show, respectively, how many companies are in the database with no income, how many are in the database with income and how many clients in the time frame selected were once prospects. Seeing how these numbers have changed over time can give you some great insight on what seasons are better for your company, as well as which salespeople are best, too.
That’s an overview of what the MBA can do. If you’d like to learn more about it, contact us and mention the MBA in your message.