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INDIVIDUAL BUSINESS REVIEW
A campus by campus, and service line by service line business assessment that will provide unbiased feedback of where the financial picture is, and also where it should be.
Cost of Doing Business
What are the real costs that we need to consider for the services? Use of "real world" cost impacts (i.e. lease rates, cost of goods, etc).
Sales Analysis
Using benchmarking, how do we compare with our existing services? What should our goal be for per-square-foot sales?
Internal Rate of Return
Provide a realistic ROI study that offers a conservative and confident analysis. Offer projection targets that will provide for greater revenue flow and profitability.
SERVICE LINE LEADER INTERVIEWS
We need to know what they know. What has their experience taught them, whether it is frustration or great vision? Service Line Leaders are great barometers for what logistic problems may be most urgent to address.
Historical Mode of Doing Business
Does it work well? Is it efficient? How can it improve?
Existing Pitfalls
They exist, so let's work to fill them in with good planning and systems of accountability.
Vendor Relationships/Contract
Are we aligned with the best vendor partners? Do they fully understand our missions? How can we help them provide the best cost and logistic structure?
P.O.S. Assessment
Do we have an optimal system functioning within those areas that require a POS program? Establish a strong tracking system that will provide vital and accurate data in order to monitor costs.
REPORTING
An extension of good POS, the reporting component will provide tremendous profit-and-loss tracking. Close monitoring will allow for daily assessments to be sure we are maximizing our efforts.
Sales
• Pharmacy
• Gift Shop
• Coffee stand
• Internal food service
Profit and Loss
Like any good business manger, we need to know if we are making or losing money on any venture. This review can be daily, weekly or monthly—but it needs to be conducted. This becomes much easier and concise with the P.O.S. elements we would recommend. Ultimately, all aspects of the project pour into this area of reporting.
Inter-department Allocations
• How can the inter-department transactions be properly applied as credits and debits?
• What are the real dollars for gifting (i.e. fund raisers) as a result of a day sale, bake sale, etc.?
Staffing Models
It is a critical aspect of the ROI that we have our staffing models well thought out to provide high level of service, without negatively impacting the profitability.
• Establish what each hour we are providing services to the space is costing us
• Every cost per hour should have an associated sales return that is traceable
• After all of our costs are satisfied, and the sales are factored in, what is our return/profitability?
Third-party Revenue Channels
If there is a decision made to involve third party services, how are they merged into our systems? How is the system compensated for such offerings?
• Day sales: Establish a pre-qualification protocol. Establish a "show fee" and revenue share structure
• How important is a certain service compared to its interferences? (i.e. Dry cleaning)
• Is there a more efficient way to fulfill services to the benefit of the staff?
• Appropriate assessments to which delivery method is most effective and financially beneficial
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