Competitive Intelligence on a Beer Budget

No matter how large or profitable, most people like the price of a beer budget and finding that extra edge to stay ahead of competition.

So, why not benefit from comparing your analytics to industry leaders using the plethora of easily available and reasonably priced industry statistics? Visualize last century’s practice of armies sending up airborne balloons or single engine aircraft to scan the horizon for enemy movement and activities to gain tactical advantages.

From your modern day version of an airborne vantage point using those industry comparison statistics, look to see how your company rates against the elite competition, not accepting normal or better than average results? What is your rank in terms of the fundamental measurements of a vibrant growing corporation? How does your financial landscape compare to industry leaders on seven key analytical results: gross profit percentage, net profit percentage, cash flow, average days receivables outstanding, average days inventory on hand, bad debt loss percentage, and return on equity? (If your industry or situation suggests adding another two or three result or changing some of the preceding seven, make the change.)

Examining those items will paint a picture of your company’s financial standards which both you and your investors or financiers will want to see. The very first step is to decide at a gut feel level whether the results what you like and you feel comfortable the numbers are accurate.

If you are pleased with the results, congratulate yourself. You are in a special category. Even so, it probably is worth your looking where you can gain that one more extra edge to stay in front of the competition or even better, to increase your lead over your nearest competitor.

If you’re not sure how pleased you are with the results, there are dangers lurking and action is vital.

At a minimum, start with a more extended self-examination. Then call your CPA for their viewpoint on where you can improve your organization financially, strategically, or personnel wise. If you doubt your outside accountant or CPA has the proper skills, do some research on experts on increasing revenues and profitability.

Until you have a strategic game plan to move forward, it may be far too easy to solve the wrong issues. Squandering resources when the wrong issues are addressed can be worse than doing nothing. The beauty of preplanning is that your costs are minimal and ultimate success is increased.

Competitive Intelligence
Competitive Intelligence

After all, the wealth you preserve and increase from this process is your own.

Bottom line? – Improve finance and operations. Find Million Dollar Blind Spot Opportunities to Accelerate the Best Leadership Decisions!

Nurture Financials – Avoid Disaster! Helping your company become fiscally fit and make you more money. Control your financial destiny! Capitalize on hidden high return opportunities, while limiting exposure to risk.

By Gary W Patterson