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Useful Advices - Discover 10 Tips on How To Avoid Financial Disaster in Your Business
You are the owner or director of a company. You are very competent in what you do; perhaps selling, marketing, engineering or product development.
Your business continues to grow, new customers are gained, orders taken for the next generation of products that will secure the future of the business - or is the future clouded with some nagging uncertainty? The outlook is fine but things are not running as smoothly as they did a short time ago.
Your business continues to grow, new customers are gained, orders taken for the next generation of products that will secure the future of the business - or is the future clouded with some nagging uncertainty? The outlook is fine but things are not running as smoothly as they did a short time ago.
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
You took the decision to market your business more aggressively and since that time small distractions keep happening that cannot easily be explained but they need your attention to resolve.
Maybe all growing companies go through this phase. All these "little things" are resolved quickly, but there does appear to be more of them. You know, or hope, that no major surprises will adversely arise and hit your company.
But what steps can you t
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
ake to give you greater comfort?
Working "on" the business rather than "in" it, has meant delegation of work to your staff. After all you cannot be with prospective customers and be talking to existing ones on day to day administrative matters. Your staff have been loyal, hard working and always done what you asked. They have worked their way up in the business.
Now, however, they are in positions where they must make decisions. Decisions t
Working "on" the business rather than "in" it, has meant delegation of work to your staff. After all you cannot be with prospective customers and be talking to existing ones on day to day administrative matters. Your staff have been loyal, hard working and always done what you asked. They have worked their way up in the business.
Now, however, they are in positions where they must make decisions. Decisions t
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
hat will impact upon you, your future, your wealth!
The important decisions are always referred to you, but it is the impact of all the small ones that could be catastrophic. So what action can be taken to give you some comfort?
The business cannot afford a full time administrative professional and there is not enough time for you to grow the business and run the day to day affairs. Help is required to understand the causes of some common f
The important decisions are always referred to you, but it is the impact of all the small ones that could be catastrophic. So what action can be taken to give you some comfort?
The business cannot afford a full time administrative professional and there is not enough time for you to grow the business and run the day to day affairs. Help is required to understand the causes of some common f
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
ailings within the business. An ‘early warning' system of impending problems that may create a financial disaster is necessary, so that appropriate action to eliminate concerns can be taken.
All businesses are different. However, 10 tips on how to avoid financial disaster that are useful in all businesses are:
1. Control your Business
Be sensible, practical, but above all else know what is happening in your business. So o
All businesses are different. However, 10 tips on how to avoid financial disaster that are useful in all businesses are:
1. Control your Business
Be sensible, practical, but above all else know what is happening in your business. So o
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
ften owners think they know, but through a lack of understanding, the use of incomplete or inaccurate information, wrong or ill-timed decisions are taken. Some business owners opt out completely and take no decision at all.
Control your business by ensuring that:
- good management and accounting systems are in use
-if you do not understand the "numbers" seek help - be trained!
-all information on which you base your decisions is accurate,
Control your business by ensuring that:
- good management and accounting systems are in use
-if you do not understand the "numbers" seek help - be trained!
-all information on which you base your decisions is accurate,
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
if in doubt have the data audited
-short and long term goals have been set
-financial information is prepared in a timely manner and at regular intervals
-all management information is reviewed in a timely manner and when necessary corrective action taken
2. Be honest and realistic in your decision making
If the data upon which you are taking business decisions is suspect, the business decision making process is suspect
-short and long term goals have been set
-financial information is prepared in a timely manner and at regular intervals
-all management information is reviewed in a timely manner and when necessary corrective action taken
2. Be honest and realistic in your decision making
If the data upon which you are taking business decisions is suspect, the business decision making process is suspect
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
.
Further remember what you are in business for - to achieve your goals, your vision. Your goals will be more difficult to achieve if the quality of the data used to base decisions upon is suspect.
Discipline yourself to:
-write off bad debts immediately
-write down the value of obsolete or slow moving stock in the Balance Sheet
-record incomes in the correct accounting period
-record expenses in the correct accounting period
-be hones
Further remember what you are in business for - to achieve your goals, your vision. Your goals will be more difficult to achieve if the quality of the data used to base decisions upon is suspect.
Discipline yourself to:
-write off bad debts immediately
-write down the value of obsolete or slow moving stock in the Balance Sheet
-record incomes in the correct accounting period
-record expenses in the correct accounting period
-be hones
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
t in all financial matters
-accrue for known future non-recurring items of cost and income that relate to the current period
-remain focused and take decisions that only support meeting your goals
3. Reconcile your Cash
Know your cash balance at all times. Cash is the lifeblood of your business. Do not let it drip away in waste.
Forecast your cash flows on a regular basis and be in control and manage your cash position.
-accrue for known future non-recurring items of cost and income that relate to the current period
-remain focused and take decisions that only support meeting your goals
3. Reconcile your Cash
Know your cash balance at all times. Cash is the lifeblood of your business. Do not let it drip away in waste.
Forecast your cash flows on a regular basis and be in control and manage your cash position.
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
Conserve all cash and recognize the dangers of:
-spending cash on items that are not necessary in meeting the goals of the business
-buying new when second hand would suffice
-structuring incentive schemes to sales instead of cash and profit
-creditor chase letters and writs may indicate cash outflows not recognized in your forecasts
-a "cheque in post" and post dated cheques mentality may further lead to errors in forecasts
4.
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
Pay on Time - Receive on Time
Make all payments on time. If this is not possible then negotiate revised terms with suppliers. Always avoid late payment of taxes, including VAT, NI and PAYE.
Negotiate acceptable credit terms with your customers, and enforce them as appropriate.
Take control of the situation and not be a bystander!
Avoid:
-unnecessary cost and waste through not acting proactively
-offering credit terms to custome
Make all payments on time. If this is not possible then negotiate revised terms with suppliers. Always avoid late payment of taxes, including VAT, NI and PAYE.
Negotiate acceptable credit terms with your customers, and enforce them as appropriate.
Take control of the situation and not be a bystander!
Avoid:
-unnecessary cost and waste through not acting proactively
-offering credit terms to custome
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
rs who fail to meet their contractual agreements
-failing to take up credit references for all new customers
-offering substantially improved credit terms to customers who have purchased small but now suddenly want to purchase big
-expensive debt recovery agencies
-failing to communicate with your suppliers should you be unable to meet your payment commitments
-not meeting with your bank on a regular basis
5. Communicate
-failing to take up credit references for all new customers
-offering substantially improved credit terms to customers who have purchased small but now suddenly want to purchase big
-expensive debt recovery agencies
-failing to communicate with your suppliers should you be unable to meet your payment commitments
-not meeting with your bank on a regular basis
5. Communicate
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
g>
Do you communicate with your staff, customers, suppliers and other groups connected with your business? Do they know that you do in fact communicate?
How do you communicate? Meetings, letters, email, telephone or other? Are your communications understood and interpreted in the manner that you intend? All too often much communication is not effective.
Consider all management and financial information that is prepared by a business. All t
Do you communicate with your staff, customers, suppliers and other groups connected with your business? Do they know that you do in fact communicate?
How do you communicate? Meetings, letters, email, telephone or other? Are your communications understood and interpreted in the manner that you intend? All too often much communication is not effective.
Consider all management and financial information that is prepared by a business. All t
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
oo often there may be a cursory read, then filed and not acted upon.
This form of communication is expensive to prepare and no benefit is derived.
Organize yourself to:
-attend regular internal and/or external review meetings with staff, customers and other stakeholders alike
-chair meetings in a constructive manner and follow an agenda
-avoid a "talk shop or blame" culture
-listen to others
-encourage feedback
-engage an "open door"
This form of communication is expensive to prepare and no benefit is derived.
Organize yourself to:
-attend regular internal and/or external review meetings with staff, customers and other stakeholders alike
-chair meetings in a constructive manner and follow an agenda
-avoid a "talk shop or blame" culture
-listen to others
-encourage feedback
-engage an "open door"
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
policy
-ensure action points are recorded, designated to individuals and followed up
6. Re-engineer your processes
Frequently business systems remain unchanged for long periods, become outdated and fail to satisfy the demands of a changing business environment.
This shortcoming is often found in administrative as well as manufacturing processes. Over time processes cease to be appropriate, are tweaked to accommodate chang
-ensure action points are recorded, designated to individuals and followed up
6. Re-engineer your processes
Frequently business systems remain unchanged for long periods, become outdated and fail to satisfy the demands of a changing business environment.
This shortcoming is often found in administrative as well as manufacturing processes. Over time processes cease to be appropriate, are tweaked to accommodate chang
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
ing environments and result in inherent waste.
Review and benchmark your processes to avoid:
-unnecessary work that does not add value
-work duplication that constitutes waste
-stand alone systems - integrate wherever possible
7. Involve your Employees
Often it is quoted that employees are the greatest asset of a business. But also it is found that in some organizations employees are not always respected, involved with
Review and benchmark your processes to avoid:
-unnecessary work that does not add value
-work duplication that constitutes waste
-stand alone systems - integrate wherever possible
7. Involve your Employees
Often it is quoted that employees are the greatest asset of a business. But also it is found that in some organizations employees are not always respected, involved with
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
or empowered to participate in the decision making processes of the business.
Train your staff and delegate responsibilities:
-in a controlled manner
-involve the appropriate staff in decision making
8. Maintain High Customer Service Levels
Retaining customers is hard, winning customers more so. During a financial crisis, your customer service level may be adversely impacted. Be proactive and agree with the customer an
Train your staff and delegate responsibilities:
-in a controlled manner
-involve the appropriate staff in decision making
8. Maintain High Customer Service Levels
Retaining customers is hard, winning customers more so. During a financial crisis, your customer service level may be adversely impacted. Be proactive and agree with the customer an
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
acceptable level of service that will meet the needs and expectations of the customer during the period of concern.
Customers are more discerning and expect all service to be right first time, do not surprise them by falling service levels after failing to communicate your changed circumstances to them. Be proactive and manage the situation.
Take remedial action when adverse trends are recorded in the following areas:
-delivery times
-cus
Customers are more discerning and expect all service to be right first time, do not surprise them by falling service levels after failing to communicate your changed circumstances to them. Be proactive and manage the situation.
Take remedial action when adverse trends are recorded in the following areas:
-delivery times
-cus
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
tomer complaints
-customer returns
-warranty claims
9. Provide an adequate Capital Structure
An expanding business may require additional funding to sustain growth. Ensure that there is the potential to raise long term funds for the business, to enable financial stability and long term planning to materialize.
Examine the following sources of funds:
-increase share capital
-leasing
-hire purchase
-business angels
-customer returns
-warranty claims
9. Provide an adequate Capital Structure
An expanding business may require additional funding to sustain growth. Ensure that there is the potential to raise long term funds for the business, to enable financial stability and long term planning to materialize.
Examine the following sources of funds:
-increase share capital
-leasing
-hire purchase
-business angels
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
trong>10. If all else Fails seek Expert Help
If you are unable to quickly resolve your problems - seek HELP. But seek help BEFORE the situation becomes a catastrophe. Time is money, and catastrophes are costly! Financial management consultants, banks and solicitors are examples of organizations that can help you.
The sooner remedial action is taken, the sooner normality is resumed and it will almost certainly be more cost effective
If you are unable to quickly resolve your problems - seek HELP. But seek help BEFORE the situation becomes a catastrophe. Time is money, and catastrophes are costly! Financial management consultants, banks and solicitors are examples of organizations that can help you.
The sooner remedial action is taken, the sooner normality is resumed and it will almost certainly be more cost effective
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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