By Michael C. Donegan
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For many small and emerging businesses, the impact of strikes may be more indirect. Merchandisers that rely on the Internet to reach customers may depend exclusively on the post office, UPS, or FedEx to deliver merchandise to customers. What type of provisions have been made to guard against the impact of strikes at courier companies? If a strike cuts off delivery to customers, how long could the company hold out? What is the run rate on cash? The company should have as a part of its strategy a finance model that addresses such a scenario.
This paperless model for handling customers and vendors, however, may require attention to system and application interfaces. Collaboration of the two is becoming more and more necessary for businesses with common supply interests or those that participate in similar vertical markets. Having adequate platforms and interfaces is a must to enable these tremendous cost-saving models. STRIKES 17 Participating in these paperless models often opens up a whole new world of stewardship when it comes to systems maintenance.
These business owners must ask themselves if they are prepared to change their business model on a day’s notice. In addition, they must have a feel for how well their data gathering, processing, and analysis tools suit their changing information needs. Can the finance function change its focus at the drop of a hat? Being able to thrive in this environment will mean being able to gather the particular data needed, when it is needed most. How well can the finance function react to the organization’s changing needs?
Growth and Profitability by Michael C. Donegan