Sales and Operations for Your Small Business

by Burton, Edwin T.; Bragg, Steven M.

• ISBN13: 9780471397045
• ISBN10: 0471397040
• Edition: 1st
• Format: Paperback
• Copyright: 2000-12-25
• Publisher: Wiley

Summary

Ensure a smooth-running operation with the indispensable guidance offered in Sales and Operations for Your Small Business. Here is detailed information on how to plan for and integrate departments, analyze markets, forecast sales, set pricing levels, manage inventories, outsource selected functions, and much more. Complete with easy-to-read discussions of relevant concepts along with practical examples of highly effective solutions, you'll also find: * Numerous ready-to-use forms, checklists, sample spreadsheets, and calculations showing practical applications of real-world examples * Step-by-step procedures for incorporating proven theories into your day-to-day business * Proven tools for easy forecasting of demand, optimal pricing of products and services, and managing your inventories for enhanced profitability * Special tips for developing an elite advisory team and valuing the business Take advantage of the comprehensive, expert advice provided by Sales and Operations for Your Small Business and step up your small business planning, marketing, and management function today.

Author Biography

E. JAMES BURTON is Dean of the Jennings A. Jones College of Business at Middle Tennessee State University, Murfreesboro, Tennessee. An entrepreneur and businessman, Dr. Burton founded, managed, and sold several businesses before returning to academic life. He holds degrees in economics, management, and accounting, and is a Certified Public Accountant and a Certified Fraud Examiner. Dr. Burton is the author of Total Business Planning and the coauthor of The Total Business Manual, both from Wiley.

Table of Contents

Preface	xi
Section I Preparing to Operate the Business	1	(64)
Planning	3	(40)
Process versus Document	4	(1)
Definitions	5	(2)
Planning Process: Levels One through Nine	7	(22)
Appendices	29	(4)
Summary	33	(2)
Appendices A-E	35	(8)
Forecasting	43	(22)
Compiling Accurate Data	46	(2)
Preparing the Data for Analysis	48	(6)
Application of Forecasting Methods	54	(4)
Summary	58	(1)
Appendix: Linear Regression	59	(6)
Section II Operating the Business	65	(124)
Marketing Analysis	67	(22)
Product Matrix Analysis	67	(3)
Unit Product Contribution Analysis	70	(6)
Analyzing the Impact of Marketing Dollars	76	(1)
Analyzing Marketing Costs	76	(4)
Correcting Weaknesses	80	(1)
Examining Channels	81	(4)
Assessing the Competition	85	(1)
Summary	86	(3)
Pricing	89	(20)
Basic Rules of Pricing	89	(1)
Cost as a Factor	90	(9)
Price Ceiling	99	(1)
What if the Market Balks?	100	(1)
Product Differentiation	100	(1)
Pricing as Part of Strategic Planning	101	(2)
Master Checklist of Key Factors That Affect Pricing	103	(3)
Effective Strategies to Combat Profit Erosion	106	(1)
Summary	107	(2)
Managing Inventories	109	(56)
Introduction	109	(1)
Perpetual Inventory	110	(7)
Physical Inventory Count	117	(4)
Reducing the Inventory	121	(2)
Picking and Backflushing	123	(2)
Obsolete Inventory	125	(2)
Safety Stock	127	(2)
Economic Order Quantities	129	(1)
Doing the Math for EOQ---A ``Case Study''	130	(4)
Problems	134	(6)
Completing the Example	140	(4)
Production Schedule	144	(1)
Bill of Materials	145	(3)
Material Requirements Planning	148	(6)
Manufacturing Resource Planning	154	(1)
Just-in-Time	155	(7)
The Differences between MRP and JIT Systems	162	(2)
Summary	164	(1)
Outsourcing Selected Company Functions	165	(24)
The Strategy of Outsourcing	166	(5)
Selecting a Supplier	171	(5)
Transitioning to a Supplier	176	(2)
Managing the Supplier	178	(1)
Measuring the Supplier	178	(2)
Pros and Cons of Outsourcing Various Functional Areas	180	(7)
Summary	187	(2)
Section III Evaluating the Operations of the Business	189	(68)
Professional Advisors	191	(12)
Building a Team of Advisors	192	(5)
Selecting Individuals	197	(2)
Organization and Structure	199	(1)
Working Together	200	(1)
Summary	201	(2)
Business Valuation	203	(24)
Reasons for Valuation	203	(1)
Valuation Methods and Theories	204	(3)
Methods of Obtaining Valuation	207	(6)
Additional Valuation Methods for Acquisition Purposes	213	(11)
Summary	224	(3)
Special Issues for the Rapidly Growing Company	227	(30)
The Perils and Rewards of Rapid Growth	227	(3)
The Reasons for Sudden Growth Spurts	230	(1)
Cash Management Issues	231	(6)
Control Issues	237	(2)
Management and Ownership Issues	239	(2)
Ownership Issues	241	(2)
Partnership and Joint Venture Issues	243	(2)
Budgeting Issues	245	(2)
Department Issues	247	(8)
Summary	255	(2)
Index	257