“The management of an enterprise must be able to generate profits and money. Higher ability to generate profits in all areas of activity, because when using it, you do not need to pay lending interest in its various forms Generate income

Revenue Generation Ratio, or basic asset return ratio(BEP - Basic Earning Power) is a financial indicator that characterizes the ability of assets to generate income. The BEP coefficient shows how many conventional units of operating profit fall on one conventional unit invested in the company's assets.
V general structure various financial ratios that reflect certain aspects of activities and financial condition enterprises, the coefficient of basic profitability of assets belongs to the group of coefficients that reflect the structure of the company's capital. This group includes the coefficients that operate on the ratios of proper and borrowed money... They show from what sources the company's assets are formed, and how much the company is financially dependent on creditors.

How the underlying asset return ratio is calculated

The result of the basic earning power ratio is the quotient of net income divided by the total assets of the company, excluding the effects of taxes and leverage (EBIT). In the form of a formula, the calculation can be depicted as:

BEP = EBIT \ A x 100%

where EBIT is profit before interest and taxes (operating profit);
A - the cost estimate of the total assets of the firm (the total net balance of the asset).

The result is presented as a percentage.

The coefficient shows how much profit the assets of the enterprise would bring in a hypothetical tax-free and interest-free situation. It should also be borne in mind that the value of the BEP indicator is influenced by the turnover ratio and the return on sales ratio.

Resource productivity through operating profit (and not through sales) is the main characteristic of the BEP ratio. After all, the value of operating profit depends on the size of the average operating costs inherent in a particular type of business. Therefore, it is recommended that the BEP for each company be compared with the industry average. BEP growth over time is seen as a positive trend.

The purpose of basic earning power

1) The coefficient is useful for comparing the performance of companies under different tax regimes and having different capital structures (the ratio of equity and borrowed funds) - the degree of debt dependence.
2) Allows you to correlate the amount of profit with the amount of resources required for the activities of the enterprise, with the help of which the profit is "earned". The expenses that provide profit are reflected not in the balance sheet, but in the income statement. Therefore, the assessment of assets allows you to see the scale of the funds involved in the activities of the firm.

3) Assessment of assets allows you to compare them with the assessment of profit, which makes the ratio "economically logical".
4) Regular settlement financial ratios, including the ratio of the basic profitability of assets, is a convenient tool for tracking the current state of the enterprise, which makes it possible to exclude the influence of various factors that distort the absolute values ​​of reporting indicators.

This is a preparation of an encyclopedic article on this topic. You can contribute to the development of the project by improving and supplementing the text of the publication in accordance with the rules of the project. You can find the user manual

Index funds allow you to receive income from investments in the stock market absolutely passively. For example, if you invest in a fund based on the S&P 500 index, your funds will be invested in the general market, and you will not have to think about how to manage your money and whether to sell or buy shares of certain companies. All these points will be managed by the fund, which forms its investment portfolio depending on the state of a particular index.

You can also choose a fund that works with any index. There are funds that are involved in various business sectors - energy, precious metals, banking, emerging markets, and others. You just need to decide for yourself that you want to do it, then invest and relax. From now on, your stock portfolio will run on autopilot.

  1. Make YouTube videos

This area is developing very rapidly. You can shoot videos of absolutely any category - music, educational, comedy, movie reviews - whatever ... and then upload it to YouTube. Then you can connect Google Adsense to these videos, and automatic ads will appear in them. When viewers click on this ad, you will receive money from Google Adsense.

Your main task is to create worthy videos, promote them in social networks and maintain enough of them to generate income from multiple clips. It is not so easy to shoot and edit videos, but after that you will receive a source of completely passive income that can last a very long time.

Not sure if you can do it on YouTube? Michelle Phan combined her love of cosmetics and painting with filming a video, gained over 8 million subscribers, and now she has opened own company with a capitalization of $ 800 million.

  1. Try affiliate marketing and start selling

This is a passive earning technique more suitable for blog and active website owners. You can start promoting any products on your website and receive a flat fee or a percentage of sales.

Making money this way is not as difficult as you might think, because many companies are interested in selling their products in as many places as possible.

You can find partnership offers either by contacting manufacturers directly or on specialized sites. It is best if the advertised product or service is interesting to you or corresponds to the topic of the site.

  1. Make Your Photos Profitable On The Web

Do you like taking pictures? If so, you may be able to turn it into a source of passive income. Photo banks such as and can provide you with a platform to sell images. You will receive a percentage or flat rate for every photo sold to a client of the site.

In this case, each photo represents a separate source of income that can work over and over again. You just need to create a portfolio, upload it to one or several platforms, and this is where your active actions will end. All technical issues of photo sales are handled through the web platform.

  1. Buy high yielding stocks

By building a high-yield portfolio of stocks, you will receive a source of regular passive income with an annual interest rate well above bank deposit interest.

Don't forget that high-yielding stocks are still stocks, so there is always the possibility of capital revaluation. In this case, you will receive profit from two sources - from dividends and return on invested capital. You will need to create a brokerage account to purchase such stocks and fill out the appropriate forms.

  1. Write an e-book

Surely it can be pretty laborious process but when you write the book and post it to trading platforms, she will be able to provide you with income for years. You can sell the book on your own site, or enter into partnerships with other sites that match the subject matter of the book.

  1. Write a real book and receive royalties

As with writing e-book, first you have to work hard here. But when the work is finished and the book goes on sale, it will become completely passive source income.

This applies especially to a situation where you manage to sell a book to a publisher who will pay you a sales royalty. From each copy sold, you will receive a percentage, and if the book is popular, this percentage can result in substantial sums. Plus, these payments can last for years.

Mike Piper of ObviousInvestor.com recently did this. He wrote the book Investing in Plain English, which was only sold on Amazon. The first book became so lucrative that he created an entire series. These books are in total.

  1. Get cashback on credit card transactions

Many credit cards provide cashback ranging from 1% to 5% of the purchase amount. You go shopping and spend money anyway, right?

Such bonuses allow you to provide yourself with a kind of passive "income" (in the form of reduced spending) from actions that you do anyway.

  1. Sell ​​your own products online

In this area, the possibilities are endless: you can sell almost any product or service. It can be something you create and make yourself, or it can be a digital product (software, DVDs, or instructional videos)

For trading, you can use a specialized resource if suddenly you do not have your own website or blog. In addition, you can conclude a partnership agreement by offering goods to sites of relevant topics or using platforms like (American marketplace for selling information digital products - editor's note).

You can learn how to sell products on the Internet and earn a lot from it. It may not be completely passive income, but it is certainly more passive than the usual work that you have to go to every morning.

  1. Invest in real estate

Rather, this method falls into the category of semi-passive income, since real estate investments imply at least a small level of activity. However, if you have a property that you are already renting out, basically all that remains is to maintain it.

In addition, there are professional property managers who can manage your property for a commission of about 10% of the rent. Such professional managers help make the process of making a profit from such investments more passive, but at the same time take away part of it.

Another way to invest in real estate is to pay off the loan. If you take out a loan to buy a property that you will be renting out, your tenants will gradually pay off this debt every month. When the full amount is paid, your bottom line will skyrocket, and your relatively small investment becomes a full-fledged retirement program.

  1. Buy a blog

Thousands of blogs are created every year, and many of them are abandoned over time. If you can buy a blog with enough visitors - and therefore enough cash flow - that can be a great source of passive income.

Most blogs use Google Adsense, which pays once a month to advertise on the site. To provide additional income you can also enter into partnership agreements. Both of these streams of profit will be yours if you own a blog.

From a financial point of view, blogs usually sell for 24 times the monthly income that blog can generate. That is, if a site can make $ 250 per month, chances are you can buy it for $ 3000. This means that by investing $ 3000, you can receive $ 1500 annually.

You may be able to buy a website for less money if the owner really wants to get rid of this asset. Some sites contain "eternal" materials that will not lose their relevance and will generate income years after publication.

Bonus advice: If you buy a site like this, and then fill it with fresh content, you will be able to increase your monthly income, and after a while you can sell the site again for a significantly higher price than you gave when you bought.

Finally, instead of buying a blog, you can create your own. This is also a good way to make money.

  1. Create a selling website

If there is a product that you know a lot about, you can start selling it on a specialized site. The methodology is the same as when selling a product of your own manufacture, except that you do not have to deal with the production itself.

Over time, you may find that you can add similar products. If this happens, the site will start generating substantial profits.

If you find a way to ship goods directly from manufacturer to customer, you don't even have to get your hands dirty. Maybe this is not one hundred percent passive earnings, but very close to it.

  1. Invest in Real Estate Investment Trusts (REITs)

Let's say you decide to invest in real estate, but don't want to devote time and attention to it at all. Investment trusts will help you with this. They are kind of like a foundation that owns various real estate projects. The funds are managed by professionals, so you don't have to interfere with their work at all.

One of the main benefits of investing in REIT trusts is that they usually yield higher dividends than stocks, bonds, and bank deposits. You can also sell your interest in a trust at any time, making such assets more liquid than owning real estate on your own.

  1. Become a passive business partner

Did you know successful company who needs capital to expand their business? If so, you can become something of a short-term angel and provide that capital. But instead of giving credit to the owner of the company, ask for a share of the shares. In this case, the owner of the company will manage the work of the company, while you will be a passive partner, also taking part in the business.

Every small business needs a referral source to support sales. Make a list of entrepreneurs whose services you regularly use and whom you can recommend for cooperation. Contact them and see if they have a referral payment system.

You can include familiar accountants, landscape designers, electricians, plumbers, carpet cleaners, or anyone else on the list. Be prepared to recommend the services of these people to your friends, family, and colleagues. You can earn commission on every recommendation just by talking to people.

Do not underestimate referral programs in the professional field either. If the company you work for has bonuses for referring new employees or new clients, take advantage of this. This is very easy money.

  1. List unused accommodations on Airbnb

The concept appeared only a few years ago, but quickly spread all over the world. Airbnb allows people to travel the world and pay much less room fees than regular hotels. By participating in Airbnb, you can use your home to host guests and earn extra money just through rentals.

The amount of income will depend on the size and condition of your home and its location. Naturally, if your home is located in an expensive city or near a popular resort, the income will be much higher. This is a way of earning money from vacant premises in your house, which would be empty anyway.

  1. Write an application

Apps can be an incredibly lucrative source of income. Think about how many people have smartphones today. Almost everything! People download apps like crazy - and for good reason.

Apps make people's lives easier. It doesn't matter if it helps you post pretty pictures or keeps track of tasks, there is always an application that is useful to someone.

You might ask, if there are so many applications out there, why would you try to create another one. Is the competition too much? All this is true, but fresh creative ideas can win. If you can come up with something unique, you can make money from it.

Not sure how to program? No problem, you can learn. There are a lot of different courses on the Internet, including free ones. Alternatively, you can hire a developer to create an app based on your idea.

The end result is an application that will potentially generate relatively passive income.

  1. Create online courses

Every person is an expert in something. Why not create an online course about your hobby?

There are several ways to create and deliver your own online courses. One of the most simple ways is to use sites like

Out of the habit of taking advantage of everything, I wanted to apply the knowledge of his Theory of Constraints in the context of our company engaged in the development of custom software. In this article, I will try to summarize the main ideas from the book, and then draw conclusions in the context of my subject area. I would be glad if someone is interested in the novel, because it is worth it. Pointing out errors in my objective and logically flawless reasoning are also welcome.

Defining the goal

The first thought that begins the storyline is the definition of the company's goals. According to Eli Goldratt, there is only one “that goal” and the main character spends several chapters, painfully trying to figure it out. "What determines the success of an enterprise?" At first, this torment seemed to me to be feigned - profit, this is the main goal of any company and the idea that the protagonist reaches after a while. But why did Goldratt want to show that this is not obvious?

A couple of days after I read the first few chapters, the CEO of a competitor called me to talk to their project manager and marketer about improving production efficiency. Since I am always happy to help competitors, I accepted the invitation. My first question was: "What are the main goals of your company?" The manager replied: "effective management of developers, optimal distribution of tasks." The marketer said, "looking for promising customers." Their director, suspecting a trick, narrowed his eyes and began to stare, waiting for an answer. I talked about "that very goal."

It would seem that the phrase "the main goal of an enterprise is to make a profit" is an axiom that has been assimilated by all people who have studied economics. Quality software by itself will not turn into money if it is not sold, just as the customer will not become a source of profit until his needs are met. Practice has shown that the company's employees consider the good performance of their duties to be its goal. Since the statistical sample was small, I asked our technical director: "What is the goal of our company?" He replied: “Make cool software and leave a mark in the universe,” then he thought and added - “so that people would like our programs. And also make the world a better place. "

After that, I began to doubt my moral and ethical qualities, but did not breed philosophy. Therefore, by a strong-willed decision, we will take profit maximization as the main goal of the company and select the metrics necessary to measure it:

* Net profit
* Return Of Investment = (return on investment - investment value) / investment value
* Cash flow

Lovers of accurate translation and common sense may argue that a goal is something clearly defined that can be achieved. Therefore, we will rather talk about continuous improvement process, the result of which is a constant increase in the three above parameters. It is important to understand that only their simultaneous improvement can be called a positive effect. For example, a million in profit per month is good if the investment was 5 million, but it is bad if a billion was invested. Likewise with cash flow. The profit can be large by the end of the quarter, when money is received for several projects, but if in the first two months there is not enough cash flow to pay salaries to programmers, then the company will cease to exist.

All this sounds simple and reasonable, but the question arises - what should be done to start the process of continuous improvement?

Eliyahu Goldrat's indicators

It is proposed to consider alternative indicators:

  • Income generation rate
  • Tied capital
  • Operating expense rate

Definitions:

Income generation rate is the rate at which the system generates money through sales
Tied capital is all the money invested by the system in purchased items that can be sold
Operating expenses are all the money the system spends to turn tied capital into income generation.

These definitions leave some scope for application. The main thing in them is that they are interrelated and can be used in the study of processes in any production. Let's look at a few examples. Office rent, employee salaries, expendable materials- these are all transaction costs (unless we are going to resell markers or paper). Purchased equipment and software is tied capital.

The situation is a little more complicated with the money spent on improving the skills of employees and the time invested in the development of various useful libraries and components. Due to the specifics of the IT industry, we will consider intellectual property as a “thing” that can be sold.

Theoretically, the main idea is to maximize the rate of income generation while minimizing the associated capital and the rate of operating expenses. With operating costs, everything is clear - the less we pay for the office, the more profit. With the generation of income too - the dollar received today is better than the dollar tomorrow, and it is even better to get two dollars today. Less obvious is the fact that tied capital increases operating costs. Example: The more computers are used to make software, the more electricity they consume. Semi-finished products at a furniture factory need to be stored in a warehouse, transported, taken into account, etc. A programmer, in whose education a lot of money has been invested, is highly qualified and, accordingly, requires a lot wages... From this point of view, it seems rational to the idea that developing your own products is more profitable than developing to order, since you can achieve a higher rate of revenue generation with less associated capital.

Dependent events and statistical variances

Before we try to apply the above theory to the practice of an IT company and work out practical advice to implement a continuous improvement process, let's look at two more important concepts:

  • Dependent events
  • Statistical deviations

The first means that one operation in production cannot start until another is finished. For example, in order for a designer to create a user interface, he needs to get the requirements for this functionality from the analyst. In order for the programmer to complete the corresponding component, he needs graphics from the designer. The tester needs to wait until the programmer is finished to check the stability and compliance of the component with the requirements. Add here possible interactions with the server team, customer representatives, sales department and you get a set of rather long chains linking our company hand and foot. But in order to generate income, it is necessary to successfully complete all events from the first to the last, and the order is most often fixed.

The basic tenet of the theory of constraints is that a chain is no stronger than its weakest link.

This means that the rate at which income is generated is determined by the performance of the weakest link in the chain. If the designer delivers materials faster than the programmer can process them, then the designer's speed will not affect positive influence to the speed of the entire system. Similarly, if a programmer quickly adds functionality, but a low level of test automation increases the time required for quality control, then this functionality will not be handed over until the testers finish their work.

To illustrate the postulate, Goldratt gives an example of schoolchildren going on a hike. The group must completely get from point A to point B and the time spent on solving this problem will be no less than the time that the slowest participant would have spent.

Now let's talk about statistical deviations. It is quite difficult to measure the speed of a designer, programmer or tester. Our profession is too creative. Let's say we built the team so that the averages are aligned to the total throughput systems. That is, an analyst, on average, delivers as many tasks as needed per iteration, programmers, based on the average speed, cope with them on time and pass them on to a group of testers.

The most stupid thing in such a situation would be to assume that the system speed in the end will be equal to the average speed at which we aligned our events - development stages. The problem is statistical deviations. Designers sometimes have a headache, and sometimes, on the contrary, they are visited by a muse. Programmers may issue more code than expected, or suddenly go on vacation, etc.

What happens then? Let's take 4 saucers - they will be production stages, a bunch of coins and dice... Coins should migrate from one pile to another, alternately visiting saucers 1, 2, 3 and 4. In the first step, we throw a dice and transfer from the heap to the first saucer as many coins as we have fallen out. Then we throw the bone again and transfer from the first saucer to the second as many coins as fell this time, but not more than we have in the first saucer. And so on, until the coins are "processed".

Since the average speed of movement of coins between the saucers is (1 + 2 + 3 + 4 + 5 + 6) / 6 = 3.5, we can assume that in 20 iterations we will get 20 * 3.5 - about 70 coins.

The experiment showed the real "rate of income generation": 59 coins were processed and another 10 were stuck in the tied capital (although they had every chance to go from start to finish). Thus, the system was running at only 84% of the expected average power:

Hence, one of the conclusions is not to rely solely on the speed of development in assessing the project. Although this link is often the most time consuming, and therefore narrow, the speed of the system may turn out to be even slower as a result of statistical deviations.

In addition, we did not take into account that the associated capital, which appears due to statistical deviations, increased the speed of operating expenses during the operation of the system, which means that the real situation is even worse.

conclusions

In conclusion, I will formulate a few assumptions that I made for myself and would like to bring up for discussion.

It is advisable not to start a task if it depends on the completion of another event and cannot be completed in the near future. By anticipating a bottleneck and trying to get a piece of the job done ahead of time, we create tied capital. For example, if the server-side code is not ready yet, we can write the code for interaction with the server on the client, displaying the parameters in the log. When the server is written, the developer will still have to go back to the interaction module, re-remember how it works and fix the unaccounted for differences. A large number of unfinished tasks take extra time as we constantly think about them and search for opportunities to complete. Let's say we know that we can't finish anything we started until our colleagues finish their work. In this case, the problem needs to be solved at the project management level, trying to increase the productivity of the narrow links, and not working for the future.

When looking for new projects, a fairly large number of potential customers are processed. With many of them we are entering the stage of active negotiations. Sometimes situations arise when all production facilities are already loaded, and negotiations with new customers are still ongoing. In this case, you need to tell the sales department - "Don't cook the pot." Otherwise, we accumulate several orders that have not started and may never be started, but consume time interacting with customers: answering their technical questions, requests to research or evaluate something, etc. The argument "it's a pity to get rid of a potential project" has a greater psychological factor than rational. The search for orders is just one of the production stages in the development to order, and if it has a higher throughput than other stages, then the creation of associated capital must be stopped, especially if there is a possibility of its non-conversion into income generation.

The reverse situation also happens periodically, when the project for the client is finished and the developer needs to be occupied with something. We, as a company wishing to switch from outsourcing to product development, in such cases came up with our own project for the programmer. Moreover, many such projects started, because the developers are strong in different areas and the focus was precisely on their skill. It was also believed that the project would not best quality if 10 people take turns working on it. As a result, we have accumulated a lot of "products", none of which reached end consumer, i.e. did not affect the rate of income generation. Most of them are simply unfinished. It would seem that it’s okay - but we avoided programmers' downtime, but by doing so it was created The huge volume tied capital. We spend a lot of time on these projects periodically trying to continue development, but mostly remembering "what's going on here" or deciding to "rewrite this part because new libraries came out" or "we learned how to do better." Now, when developing our own products, we primarily do planning, allocate all the necessary resources and follow the plan until the project is completed. And if developers have downtime, then they can read a book at this time.

To everyone who got to these lines, I want to say thank you for the intellectual work done and I wish to keep the mind wide open to new ideas. The world is arranged logically, we just have to correctly understand the prerequisites and, as an inevitable consequence, to achieve the desired result.

Responsibility for the financial condition of the company lies with the CEO and functional directors of the company. They are required to be able to generate profits and money. "Business Consulting Igor Chugunov" is ready to help with this through their training.

What do the terms "financial condition of the enterprise" and "efficient enterprise" mean?

The term "financial condition of the company" means the results of assessing the ability of the company to generate net profit, positive net cash flow, increase its market value, timely and fully pay off its short-term and long-term financial obligations, maintain its financial independence while attracting borrowed capital.

The highest strategic goals of the enterprise are two goals in short term activity (up to 365 days) and one goal in the long-term period of activity (more than 365 days):

  • (1) the first highest strategic goal economic activity enterprises - the optimal increase in net profit;
  • (2) the second highest strategic goal of the enterprise's economic activity is the optimal increase in positive net cash flow;
  • (3) the third highest strategic goal of economic activity is to increase market value enterprises.

Net profit is the excess of the total income of economic activities over the total expenses of economic activities for a certain period.

A positive net cash flow is an excess of total receipts Money over the total payments of funds for the period of activity.

The relationship between the three highest strategic goals of the enterprise is as follows: achieving the goal for net profit creates necessary condition achieving the goal of a positive net cash flow, which in the long term creates a necessary condition for increasing the market value of the company by increasing the equity capital of the company.

Net profit is an indicator that an enterprise is able to earn, not produce and sell products, what can be done with a loss, but earn in the form of the effect of economic activity. A positive net cash flow is an indicator that the company knows how to live according to the money it earns, without incurring debts that it cannot repay, and if it takes out loans, it returns them in a modern and full volume, having enough money to continue its business. activities. An increase in the market value of an enterprise is an indicator of an increase in the wealth of its owners associated with the enterprise.

Thus, the analysis of the financial condition of an enterprise or its financial diagnostics is an analysis of the enterprise's ability to achieve its highest strategic goals. Consequently, financial diagnostics is the determination of the reasons for the success or failure of an enterprise, positive and negative trends in the ability to generate profit and money, in liquidity and financial stability, as well as the development of draft solutions to improve the financial condition of the enterprise. It is quite obvious that the results of the financial diagnostics of the enterprise are an area of ​​highest interest for the owners of the enterprise, who created the enterprise to achieve precisely these goals, for general director(a director) of an entity with full responsibility for achieving net income targets and a positive net cash flow. The “generality” of the general director is determined by the fact that he is responsible for achieving the final results of the economic activity of the enterprise, which are necessary for all the “joint-stock groups” of the enterprise: optimally increased net profit and optimally increased positive net cash flow.

The term " efficient enterprise”Means that the company generates both net income and positive net cash flow. If an entity generates net profit and negative net cash flow, or generates a loss and positive net cash flow, or, even worse, generates a loss and negative net cash flow, then such an entity is ineffective. An analogous to the inefficiency of an enterprise in the field of human health can be a serious illness that threatens to turn a person into a disabled person or kill him.

The effective economic activity of an enterprise is based on its ability to produce and sell to consumers the products they need, capable of satisfying their needs better and faster than competitors are capable of, which is manifested in high revenue from product sales, and to do this in the most economical way, which is manifested in relatively low costs. As a result, the difference between high revenues from sales of products and relatively low costs, which is a net profit, becomes large, which then materializes into a large positive net cash flow.

The ability of an enterprise to generate net profit and a positive net cash flow is a consequence, on the one hand, of the managerial competence of its management, and on the other hand, of the influence external environment enterprise on the results of its business operations, which can be both favorable and unfavorable. The external environment of the enterprise is the consumers of the enterprise's products, suppliers of resources, competitors, the political situation, the economic situation, the technological situation, the social and environmental situation. The management of the enterprise is obliged to organize the business processes of the enterprise in such a way that in the conditions of the existing (favorable or unfavorable) external environment, the enterprise is effective, i.e. generated net income and money. If this does not happen, then the owners of the enterprise should be diagnosed with “managerial incompetence of management” either to themselves, if the owners of the enterprise hold key positions in the enterprise, or to hired managers. This means that the existing specific personal characteristics, knowledge and skills of enterprise management are insufficient to achieve the highest strategic goals of the enterprise. The problem of insufficient managerial competence of management is a traditional problem for those enterprises that do not invest sufficient financial resources in its increase. Making such a diagnosis means the need to organize management treatment appropriate to this diagnosis in the form of specialized training in what is primarily needed in business to optimally increase net profit, positive net cash flow and market value of the enterprise, or replace management if it turns out to be incapable of learning.

Who, for what and why is responsible for the financial condition of the enterprise.

The organizational and functional structure of any enterprise is complex, since any enterprise must satisfy the needs of five main "joint stock groups" that consume the results of its economic activities: the "Investors" group, which includes the owners of the enterprise, external investors, credit organizations that provide loan capital, the " Product consumers ”, including consumers-enterprises, consumers-individuals and intermediaries, the“ Suppliers ”group, which includes suppliers of all types of resources, the“ Enterprise personnel ”group, the“ State regulatory bodies ”group. The need to satisfy the needs of these "shareholder groups" at a certain level, or even better and faster than competitors can do, necessitates the assignment of special basic structural links of the scheme to these "shareholder groups" organizational structure enterprises and assigning them functions (work) related to meeting their needs: the department (department) of finance, headed by CFO, department (division) of marketing, headed by the director of marketing, department (section) of production, headed by the director of production, department (division) of logistics, headed by the director of logistics, department (department) of personnel, headed by the director of personnel. The term "main structural link" should be understood literally: the main one, which is the basis of the organizational structure, which has a major impact on the financial condition of the enterprise.

The "generality" of the general director (chairman of the board, president, etc.) is also determined by the fact that the functional directors of the enterprise should be directly subordinate to him: marketing director, production director, logistics director, finance director, personnel director that have a major impact on the financial condition of the enterprise through the management of those business operations that are carried out in their subordinate divisions of the enterprise.

Together with the delegation of authority to manage one of the main areas of economic activity of the enterprise, the functional director should be assigned responsibility for financial results activities in a controlled functional direction. This responsibility is formalized by setting goals for financial performance economic activities of the enterprise, for which the functional director bears the stipulated financial and administrative responsibility. The financial indicators of the economic activity of the enterprise for which the functional directors should be responsible are the following:

  • (1) marketing director: revenue from product sales, cost of direct materials included finished products, works, services, gross profit, total marketing expenses enterprises, size and turnover of receivables for goods, works, services, operating profit;
  • (2) production director: production cost, gross profit;
  • (3) director of logistics: total logistics costs of the enterprise, cost of finished goods and goods sold, gross profit, operating profit;
  • (4) CFO: finance costs, i.e. costs associated with financing the economic activities of the enterprise, profit before tax, the company's net cash flow.
  • (5) director of human resources: annual net income, annual net cash flow.

The implementation of the financial responsibility of the functional director is ensured by the relationship between the variable component of his monetary remuneration and the success in achieving goals in terms of fixed financial indicators.

Thus, in order not to become one warrior in the field in the struggle to achieve the highest strategic goals of the enterprise and to win the battle, the CEO must have managerial competence in optimizing the organizational and functional structure of the enterprise, determining key performance indicators in marketing, production, logistics, financial management and management. staff and the appointment of SMART goals for them, in the organization of an effective system of material reward. The CEO must also have managerial competence in analyzing the financial condition of the enterprise for qualified decision-making about "Who is to blame?" or "Who is responsible for the success?" and "What to do?" Without deep knowledge of financial management, he is not able to understand the interpretation of the results of financial diagnostics procedures, the reasons that caused the change in the financial condition of the enterprise and make an informed decision to improve it. In this case, the CEO usually seeks refuge in an area in which he considers himself competent. This is either the area of ​​activity in which he was successful before the post of CEO, or the desire to delegate to his subordinates everything that causes him a feeling of discomfort. In essence, this means the departure of the captain from the captain's bridge. By analogy with the Titanic, it remains for the enterprise to get into an unfavorable external environment (the ship will meet the iceberg) in order to start generating first a negative net cash flow, and then a loss (sinking).

The director of the functional area of ​​economic activity of the enterprise must also be competent in the procedures of financial diagnostics of the enterprise in order to be able to understand its results, to understand what he is to blame or what his success is, to understand the content of the decision of the CEO to improve the financial condition of the enterprise, to determine how to improve the financial the state of the enterprise due to the optimization of activities in its functional area. A symptom of a functional director's lack of managerial competence is his behavior at a meeting held by the general director with an agenda to improve the financial condition of the enterprise, when the functional director behaves passively, i.e. does not come up with constructive proposals or is not ready to take responsibility for improving the values ​​according to the financial indicators of the enterprise assigned to him. Like any incompetent leader, he strives to deal only with those aspects of his duties in which he was competent in the previous successful work and happily delegates to his subordinates the authority to deal with uncomfortable aspects of their duties.

Responsibility for functional directors for the financial condition of the enterprise according to the relevant key performance indicators should be assigned due to the fact that they directly manage the assets of the enterprise, the quality of management of which depends on the financial results of the economic activity of the enterprise and its financial condition:

  • (1) the marketing director manages the marketing products of the enterprise, including the pricing of products, part of non-current assets (brands), part of current assets (accounts receivable for goods, works, services);
  • (2) the production director manages a significant part of non-current assets (production equipment, production buildings), a significant part of current assets (stocks of work in progress);
  • (3) the director of logistics manages a significant part of non-current assets (warehouse buildings, transport, hoisting-and-transport machines in warehouses, equipment for storing stocks) and a significant part of current assets (stocks of material resources for production, finished products, goods);
  • (4) the CFO manages money, which is a type of current assets;
  • (5) the director of human resources manages the increase in the managerial competence of the management of the enterprise, which is an intangible asset.
How to analyze the financial condition of the enterprise, who should do it and who is the user of the results of the financial diagnostics of the enterprise.

For the functional direction of the economic activity of the enterprise "Financial management" should be assigned three functions of financial management, which are the function "Investment and reinvestment management", the function "Management of asset financing" and the function "Asset management". The Asset Management function includes, along with others, the Financial Diagnostics (analysis of the financial condition) of the enterprise.

The function "Financial diagnostics (analysis of the financial condition) of an enterprise" consists of financial diagnostics procedures, the composition and content of which must be developed as a result of the organizational and functional design of the functional direction "Financial Management" by the CFO and approved by the CEO of the enterprise.

Thus, the analysis of the financial condition of the enterprise should be in strict accordance with the content of the function "Financial diagnostics (analysis of the financial condition) of the enterprise". In the right way understanding how to do this should be a way to explore financial diagnostics as a field of expertise through specialized teaching in an academic style.

The function "Financial diagnostics (analysis of the financial condition) of an enterprise" can, as a rule, be performed by one qualified specialist in financial management, regardless of the scale of the enterprise's economic activity.

When using the technology of budgetary management of the efficiency of an enterprise, this function is performed by a specialist in budget management of the department (division) of the enterprise's finance.

The informational result of financial diagnostics is a summary of financial diagnostics, which should describe in detail the method of obtaining these results, the data used, the interpretation of the results in the style of "This means that ..." is given, positive and negative trends in the financial condition of the enterprise are identified, the guilty functional directors are identified or functional directors who have provided the necessary contribution to the good financial condition of the enterprise, developed solutions to improve the financial condition of the enterprise or to protect it from unnecessary changes.

The users of the results of financial diagnostics of the enterprise are the general director and functional directors of the enterprise.

What should be trained for enterprise management and who should organize such training.

Based on the highest strategic goals of the enterprise, the CEO, marketing director, production director, logistics director, finance director and HR director need to be taught what is primarily needed in business to optimally increase net profit, positive net cash flow and the market value of the enterprise.

The results of the analysis of the financial condition of the enterprise, which always reflect the existing level of managerial competence of the enterprise management, should help to determine the list of training questions for each of them. For example, if an enterprise is diagnosed with a negative downward trend or a problem of low return on equity, which is determined by a declining or low value of the return on equity ratios ROCE, ROTA, ROE and ROI, then the root problems of the enterprise are associated with insufficient management competence in the following areas of management: product management, cost management of manufactured products, pricing management, inventory management, warehouse management and storage of stocks, transportation management, accounts receivable management, current liabilities management. In each of these areas, the financial diagnostic results can be used to pinpoint the list of topics in the training program for the CEO or COO, or multiple COOs, who should be trained in that program. In the analyzed case, the marketing director, the production director and the logistics director must undergo training for various training programs: marketing director - for the program of enterprise product management, pricing management, management of receivables for goods, works and services, production director - for production cost management program, logistics director - for the inventory management program, the warehouse and storage management program, the transportation management program, the program for managing accounts payable for goods, works, services.

Responsibility for organizing effective training for personnel rests with the HR director, who is responsible for organizing training on what is primarily needed in the business to optimally increase net profit, positive net cash flow and market value of the enterprise. The result of such training should be an increased level of managerial competence of the trainees, which can always be determined by measuring the level of knowledge and skills in specific aspects of the activity.

Training programs and expert management consulting on technologies for improving the financial condition of an enterprise.

Igor Chugunov's Business Consulting Company has been operating in the market of short-term business education, training and management consulting since 2003, specializing in corporate and individual training of business owners, top and middle managers, professionals and specialists in technology effective management in marketing, logistics, finance, personnel management, business processes and business projects, on the implementation of expert management consulting projects and individual management consulting.

Business Consulting Igor Chugunov positions its products as “high-quality training on what is primarily needed in business to optimally increase net profit, positive net cash flow and market value of the company”.

The training is carried out in the format of open training modules, conducted according to the schedule, and corporate training seminars, conducted at the request of clients.

Expert consulting projects and individual management consulting are available on request.

The professional specialization of the company covers the area of ​​effective business management aimed at the optimal increase in net profit, positive net cash flow and company value, and includes the following 6 training programs and 23 open training modules in them:

training program "Financial Management":

  • module "Analysis of the financial condition of the company and ways to improve it" As needed ";
  • module "Cost Management" As needed ";
  • module "Technology of effective management" As needed "of accounts receivable";
  • module "Technology of budget management" As needed "by the company's efficiency";
  • module "CVP-analysis - a tool for planning profits, incomes and costs for various volumes of production, purchases of goods and their sale."

training program "Marketing Management":

  • module "Technology of effective marketing: market analysis" As needed ";
  • module "Technology of effective marketing: development marketing strategy"How to" ;
  • module "Technology of effective marketing pricing";
  • module "Technology" As needed "for diagnostics of opportunities for a significant increase in sales of products (finished products, goods, works, services)";
  • module "ABC analysis based on the Pareto principle - a tool for increasing business efficiency";
  • module "Technology of effective sales" As needed ";

training program "Logistics Management":

  • module "Fundamentals of the organization" How to "logistics in the company";
  • module "Forecasting" As needed "of demand and sales";
  • module "Basics of effective inventory management" As needed ";
  • module "Practical systems for effective inventory management" As needed "and their design";
  • module "Effective management" As needed "stocks of material resources of an industrial enterprise";
  • module “Methods and Practical Tools for Effective Warehousing“ As Needed ”;
  • module "Effective road transport of goods" As needed ";

training program "Personnel Management":

  • module "Design Basics of Organizational and Functional Building" As Needed "of an Effective Company";
  • module "Technology" As needed "for accurate assessment of personnel by measuring managerial competence";
  • module "Technology" As needed "of effective complex motivation";
  • module "Practical application of effective motivation tools";

training program "Process Management":

  • module "Technology" As needed "for improving the business processes of the organization";

training program "Project Management":

  • module "Technology" As needed "for effective project management".

Mandatory elements of each training module are in-depth coverage of the program issues, demonstration practical application learned management tools and solutions, training of trainees in the process of performing practical exercises, a detailed and well-illustrated study guide.

The schedule of open training modules, their detailed programs, customer reviews, conditions of participation can be found on the website www.consulting-chii.com.ua of "Igor Chugunov's Business Consulting".

Corporate training seminars are conducted both according to the programs of open training modules and according to unique programs that reflect the information needs and expectations of customers. Mandatory elements of the training seminar are in-depth coverage of the program issues, demonstration of the practical application of management tools, training of trainees in the process of working in groups, using the situation and data of the customer company in demonstrations and works in groups, development and justification management recommendations, a detailed and well-illustrated study guide.

Expert Consulting Project, aimed at developing expert solutions for a specific customer, can be performed on any of the management problems associated with the professional specialization of "Igor Chugunov's Business Consulting": marketing, logistics, finance, personnel, business processes, business projects. One of the main goals of an expert consulting project is always to optimally increase net profit, positive net cash flow and the value of the client company. By agreement with the customer, a service is provided to support the implementation of the developed expert solutions.

Individual management consulting an enterprise owner, top or middle manager, professional or specialist can be performed using any of the effective management technologies associated with the professional specialization of "Igor Chugunov's Business Consulting": marketing, logistics, finance, personnel, business processes, business projects.

Director of "Business Consulting Igor Chugunov"

Chugunov Igor Ivanovich, Diploma MBA Mgmt. (Open University, Great Britain)

- There can be many goals, but the Main Goal is ONE!
- Business Purpose - "EARN MONEY ... MORE WITH EVERY DAY"

Does the company make money? (objectively)

A company makes money if:
with her growth Net profit(Net Income, NI)
simultaneously growing Return on investment(Return of Investment, ROI)
and increases Cash flow(Cash Flow, CF).

Does the company make money? (so employee)

An employee can be guided by 3 gauges:
- Income generation rate;
- Tied capital;
- Operating expenses.

What are these meters about?

Income generation rate

Income generation rate (Throughput) defined as the rate at which a company, as a system, generates money from sales.
Income generation rate Is (calculation per unit of time)
selling price
minus
everything that was not earned by our company (Variable Costs)

Tied capital

Tied capital (Inventory)- all money invested by the company in objects intended for processing and subsequent sale, i.e. all investments required for the production of the product / service being sold.
In other words, this is all the money invested by the system in purchased items that can be sold, i.e. money currently held in the system.

Operating expenses

Operational Expense Is all the money a company has to spend to turn tied capital into revenue generation.
In other words, this is all the money that a company spends in order to produce and sell products.

How are “these” and “those” gauges related?

 

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