THE THREE COMPONENTS OF EVERY BUSINESS – YOUR INPUT, PLEASE!
Bruce Newman of The Productivity Institute, LLC (www.prodinst.com) believes that every business enterprise, at its highest decision making level needs to re-evaluate itself using a simple program which Bruce and I have co-authored called CRITICAL FACTOR NEEDS ANALYSIS™ (“CFNA™”).
Similar to the concept of Zero-Based Budgeting, this evaluative approach is designed to objectively analyze any organization in terms of: 1) price and revenue sensitivity; 2) variable costs and profit contribution margins; 3) fixed costs – both productive and unproductive.
The end result of the process is to quickly develop and implement a plan to reduce the break even revenue level required in order for the business to maintain maximum survival flexibility despite external economic variables. This can be accomplished without compromising the organization’s ability to expand to meet a better economic climate. The plan can be implemented rapidly, and with minimal trauma involved.
The CFNA™ approach is built on basic cost-accounting principles, but is tightly structured in a very practical format for even the smallest organizations.
Please download Article 1 (in a series of 5) from http://www.mediafire.com/?2jw2ijyzz4z
And review it. We would like your input, ideas and criticisms. Attribution will be given prior to actual publication of the entire work. You can respond by posting here, or by emailing Bruce at info@prodinst.com
We welcome your input.
Douglas Castle
THE NATIONAL NETWORKER (http://thenationalnetworkerweblog.blogspot.com)
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