Want to create consistent cash? Outsource, says Jeff Finney

What’s the mark of a healthy business? Is it profit? Customer count? Leadership? I’d argue that the clearest sign of a healthy business is stable, positive cash flow. With cabinet shops, getting the timing right on cash inflows and outflows is crucial.

 

Outsourcing manufacturing capacity helps you generate consistent cash in two major ways:

 

• You expand your capacity without investing in new, expensive equipment or inventory
• You’ll have more time to bid jobs CONSISTENTLY

 

YOU NEED A CONSISTENT SALES PROCESS TO HAVE CONSISTENT CASH

 

I’ve written about it before, but it bears repeating: a consistent sales process is the only way to end the vicious sales cycle.

 

You know what the vicious sales cycle is because your shop lives in it month after month. You bid, bid, bid, and then you manufacture, manufacture, manufacture. When you’re busy producing, you don’t make time for sales, so your cash reserves deplete. When you finish your manufacturing push, you finally take time to assess your accounts and realize that your cash has bottomed out.

 

Having low cash reserves is not a great feeling. If you haven’t developed a consistent sales process, your mood probably correlates with your cash levels. That’s no way to live. While you focused on sales, your team may not have enough work to do because you’ve finished the manufacturing jobs in your queue.

 

The only way to end the vicious sales cycle is to implement a consistent sales process, but what does that mean?

 

When you outsource your manufacturing capacity, you gain the time to bid jobs more consistently, not just when your current jobs are complete. If you keep your sales funnel full, you’ll never have to scramble for more work or face a cash flow crisis.

 

If a consistent sales process is part of your everyday efforts, you’ll consistently grow year after year without the violent swings up and down. Your business will be healthier, and so will you.

 

Are you ready to try outsourcing so that you can finally focus on consistent sales and end the vicious up and down of your current sales cycle?

 

See Jeff's full article, which features a link to his podcast.

 

from https://www.woodworkingnetwork.com/management/want-create-consistent-cash-outsource-says-jeff-finney

4 ways to prevent a skills shortage at your cabinet company

The skills shortage has been a problem since the dawn of the modern corporate system. Both companies and employees have not been able to keep pace with the rapid changes in almost every industry. The lack of skilled staff can obstruct or even stop some long-standing operations.

 

Many manufacturing-related jobs that require a highly specific skillset are going unfilled. This situation is the result of an entire generation heading towards retirement without passing on their skill-set to younger generations.

 

With a skills shortage, an ounce of prevention is better than a pound of cure. Here are the four main ways to prevent and address a skills shortage:

 

1. Focus on Your Existing Employees

 

The people employed at your firm are already familiar with its culture, regulations and expectations. They know each other and have developed a sense of belongingness to their workplace. If they also feel that the organization invests in employees by upgrading their skills regularly, then they might not have a reason to leave. Investing in training and development can help increase the overall capabilities of an employee and their level of job satisfaction. One creative way to develop a junior employee is to pair them with a senior one to learn new skills in a hands-on fashion.

 

Author Ankit Sharma is a 2019 40 Under 40 honoree. He owns Kitply, a Vancouver-based wood products company.

2. Build a Talent Pipeline

 

This strategy is considered to be the best when it comes to preventing a skills shortage happening in the first place. The idea is to create a pool of talent, within your organization, that will be used to fill positions in the future. This pool of skilled individuals can be acquired in many ways – one of which is through an internship program.

 

3. Introduce a Referral System

 

An employee referral system helps to land the most suited talent for a particular job since existing staff are likely to recommend someone they know shares the same value system. This approach can also increase the overall employee engagement and give them a sense of importance at their workplace.

 

4. Re-examine the Hiring Criteria

 

Organizations often have stringent and unrealistic hiring criterion. Finding the ‘perfect fit’ of skills, talent, and values for the role can be more difficult and expensive than hiring people based on their potential and attitudes. Relaxing some less important criteria such as educational background will get you a diverse workforce that can manage different tasks and develop additional skills over time.

from https://www.woodworkingnetwork.com/management/4-ways-prevent-skills-shortage-your-cabinet-company