Business Skills Training for Latrine Entrepreneurs ... · BUSINESS SKILLS TRAINING FOR FRANCHISEES...
Transcript of Business Skills Training for Latrine Entrepreneurs ... · BUSINESS SKILLS TRAINING FOR FRANCHISEES...
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BusinessSkil lsTrainingforLatrineEntrepreneurs
Participant’sWorkbook
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TABLEOFCONTENTSUNDERSTANDINGTHEMARKET
Pg.4
HOWTOCALCULATEPRODUCTCOSTS,PROFIT,ANDSELLINGPRICES
Pg.6
HOWTOMAKESALESGOALS
Pg.16
HOWTOCALCULATEPRODUCTIONNEEDEDTOMEETWEEKLYSALESGOALS
Pg.19
HOWTOCALCULATERAWMATERIALSNEEEDTOMEETSALESGOALS
Pg.22
HOWTOSCHEDULEDELIVERIES
Pg.25
MANAGINGYOURCASH
Pg.27
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HOWTOKEEPGOODSALESRECORDSANDFINANCIALRECORDS
Pg.31
PROVIDINGGOODCUSTOMERSERVICE
Pg.34
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BUSINESSSKILLSTRAININGFORFRANCHISEES
Thistrainingmoduleispartofalargertoolkitdesignedtoteachyoualltheskillsandknowledgeyouneedtosucceedasalatrinebusiness.Thistrainingmodulewillhelpyouplancarefullyandmanageyourbusinesswell.
AFTERTHISTRAINING,YOUWILLKNOWHOWTOPERFORMTHEFOLLOWINGTASKS:
1. Understandingthemarket2. Howtosetpricesbasedoncostofproductionandprofit3. Howtosetsalesgoals4. Howtosetproductiongoalstomeetsalestargets5. Howtocalculaterawmaterialsneededtomeetsalesgoals6. Howtoscheduledelivery7. Howtomanageyourcash8. Howtoprovidegoodcustomerservice9. Howtokeepgoodsalesrecordsandfinancialrecords
ThisLatrineFranchiseeBusinessSkillsParticipant’sWorkbookwasadaptedfromthe‘BusinessSkills’trainingmoduledevelopedbyiDECambodiaaspartoftheSanitationMarketingScale-Up(SMSU)projectfundedbytheBill&MelindaGatesFoundationandtheStoneFamilyFoundation,withtechnicalsupportfromtheWaterandSanitationProgramoftheWorldBank(WSP).
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1.UNDERSTANDINGTHEMARKET
Ifyouunderstandwhatyourbusinessdoeswellanddoesn’tdowellcomparedtoothersimilarbusinesses,youcanimproveonyourweaknessesanduseyourstrengthstoattractcustomerstoyourbusiness.
WHYDOYOURCUSTOMERSCHOOSEYOURBUSINESS?
v Location/convenience?v Productsandservices?v Relationshipwithyouoryourstaff?v Yourexperience/expertise?v Qualityofproductsorservices?v Price?v Recommendations from family or friends?v Marketingandpromotionalmaterials?
WHEREELSEDOYOURCUSTOMERSGO?
WHY?
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WHATCANYOUDOSOTHATTHEYCOMETOYOURBUSINESSFIRST?
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Fillinthistabletohelpyouunderstandyourstrengths,weaknesses,opportunities,andthreatsaswellashowyourstrengthsandweaknessescomparetothoseofyourcompetition.Thiswillhelpyouidentifythingsthatyouneedtoimproveandthingthatyoucancontinuedoingtomakesurepeoplechooseyourbusinessoveranyothers.
You YourCompetition
External Internal Internal
Opportunities: Strengths: Strengths:
Threats: Weaknesses: Weaknesses:
Itisalsoveryhelpfultounderstandhowbigthemarketisinyourarea.YoucangetthisinformationbytalkingtoyourlocalgovernmentofficialsatNamSaat.Themarketisthenumberofhouseholdswithoutlatrines.Theykeepup-to-dateinformationonthenumberoflatrineownersandnon-latrineowners,andotherhelpfulinformationforyourbusiness.Contactthemtofindouthowyoucanworktogethertoachieveyourgoals!
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2.HOWTOCALCULATEPRODUCTCOSTS,PROFIT,ANDSELLINGPRICESThissectionisdesignedtohelpyoucalculatehowmuchitcoststoproducethelatrineproduct.Youcanusethisinformationtosetpricesforyourproductsthatallowyoutocoverallofyourcostsandmaketheprofitthatyouwant.
Followthesestepstoarriveatyourfinalsellingpricebasedonthecostofproductionandyourdesiredprofit:
1. Listthecostsofallrawmaterialsyouneedtomakealatrine2. Calculatethecostofrawmaterialsneededforonering,thenthreerings,thenfourrings3. Calculatethecostofrawmaterialsneededforoneslab(withandwithouttiles)4. Chooseyourdesiredpricingstrategy(lowprofit,highvolumeisrecommendedstrategy)5. Calculatefinalcostincludingprofit,overhead,marketingandpromotionalcosts,labor,andtaxes6. Calculatefinalcosttocustomer(sellingpriceplusinstallationandtransportationfees)
Allcalculationsarebasedonthe1-2-3ratiomethodforconcretemixingwithstandardcementandthecostslaidoutinthefollowingtables.
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STEPONE
Fillinthe“Inputcosts”tablefirst.Useactualinvoicesandreceiptsfromrawmaterialspurchasestolistthecostsofeachunitofrawmaterialsyoubuy.Theunitsmaybedifferentforeachmaterialdependingonhowmuchyoubuyeachtime.
Thesecondtable(“Materialcostconversion”)willhelpyoutakethecostsofthematerialsintableoneandputthemintothesameunitintabletwo.
MATERIALCOSTCONVERSION
LAK/M3(A) Kg(B) LAK/Kg(A÷B)
Gravel
Sand
Cement
Water
INPUTCOSTS
INPUT COST/UNIT
Gravel
______LAK/M3
Sand ______LAK/M3
Cement ______LAK/M3
SteelBar ______LAK/M3
SteelWire ______LAK/M3
Tax ______LAK/M3
Tile ______LAK/M3
PlasticCover ______LAK/M3
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STEPTWO
Thisstepwillhelpyoucalculatethecostofrawmaterialsforonering,threerings,andfourrings.YouwillusetheresultsincellsAandBagaininStepFive.
! A! B
No. MaterialtoProduceRing80x40x3cm Unit Volume PriceLAK/Unit Cost
1 Gravel Kg 21
2 Sand Kg 14
3 Cement Kg 7
4 Water Kg 5.4
5 SteelBar Kg 2.4
6 Wire kg 0.1
Totalfor1ring 49.9
A Totaltoproduce3rings
B Totaltoproduce4rings
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STEPTHREE
Thisstepwillhelpyoutocalculatethecostofrawmaterialsforproducingoneconcreteslab.
Firstyouwillcalculatethecostofoneconcreteslab.Thenyouwillusethatresult(C)inthenexttwotablestocalculatethecostofonecompleteslabwithtiles,andonecompleteslabwithouttiles.
TheresultincellsDandEwillbeusedlaterinStepFive.
!C
!D
No. Materialtoproduceslab100x100x4cm Unit Volume PriceLAK/Unit Cost
1 Gravel Kg 27
2 Sand Kg 18
3 Cement Kg 9
4 Water Kg 6.2
5 SteelBar Kg 2.8
6 Wire Kg 0.1
C Total 63.1
FullSlabComponentWithTiles Unit Cost/Unit TotalC Cementslab 1 Pan 1 SealCement5,000/boxfor5slab 1 PlasticHole 1 TileThai 1 D Total
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!C!E
FullSlabComponentWithoutTiles Unit Cost/Unit Total
C CementSlab 1
Pan 1
PlasticHole 1
E Total
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STEPFOUR
Mostbusinessestrytochargeahighpricefortheirproductssothattheycanmakealargeprofitforeachproductsold.However,itcanactuallybemuchmoreprofitabletomakealowprofitforeachlatrine,becauseyouwillsellmanymore!Ifyoukeepthepricelow,morepeoplewillbuyyourlatrines.Thisiscalledalowprofit,highvolumestrategy.
Takethisexample:
ProfitperLatrine WeeklySales TotalWeeklyProfit
250,000LAK 2 500,000LAK
200,000LAK 5 1,000,000LAK
150,000LAK 10 1,500,000LAK
100,000LAK 25 2,500,000LAK
Highprofit,lowvolume
Lowprofit,highvolume
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ITISIMPORTANTTOCAREFULLYCONSIDERYOURPRICE.TOSELLMORELATRINES,YOUWILLNEEDTOTHINK
ABOUTHOWMUCHPEOPLECANAFFORDTOPAY,ANDHOWMUCHTHEYAREWILLINGTOPAY.
Forexample…
InChampasakDistrict,about47%ofhouseholdsarewillingtopayover300,000LAKfortheirlatrine.However,inSekongDistrict,onlyabout
21%ofpeoplearewillingtopayover300,000LAKfortheirlatrine.1
1PhamThiHoangVan,ThatsaphoneSongbandith.WSPBaselineSurvey:ScalingUpRuralSanitation,FinalReport.June2012.
TAKETHISINTOCONSIDERATIONWHENYOUSETAPRICEFORYOURPRODUCTS.EVENIFPEOPLEHAVEALOTOFMONEY,
THEYMAYNOTWANTTOSPENDITONYOURPRODUCTIFTHEYDONOTTHINKITISIMPORTANTORHIGHQUALITY.YOURJOBISTO
CONVINCEPEOPLETHATYOURPRODUCTISWORTHSPENDINGMONEYON!
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STEPFIVE
Nowthatyouhavethecostsofeachcomponentofthelatrine(ringsandslab),youcanpluginthenumbersbelowinthespaceslabeledA,B,D,andE.Addincostsforlabor,overhead,marketing(printingpromotionalmaterials,commissionforsalesagents,etc.),andtax.Thiswillgiveyouthetotalcostofproducingeachofthefourproductoptions.
Onceyouhavethetotalcost,youwanttoaddintheprofityouwanttomake.ChoosethisamountcarefullybythinkingaboutthestrategiesdiscussedinStepFour.Addingprofittoyourtotalcostwillgiveyouthefinalpriceforeachproductoption.Thisisthepricethatyoushoulduseconsistentlywithallcustomerstomakeaprofitandcoverallofyourcosts.
TILEOPTION NOTILEOPTION 3rings 4rings 3rings 4rings
LaborInput LoadingCost(In-Out)
Rings A B A BSlab D D E E
OverheadCostInput5% PromotionalandSalesMaterials
SalesAgentCommission2 50,000 50,000 50,000 50,000VAT10%Input@InputCost
TotalCost Profit
FinalPrice
250,000LAKistherecommendedcommissionperlatrineordered.Thisamountmaybesplitbetweentwosalesagents,asmanydecidetodosalesactivitiesinteamsoftwo.50,000LAKhasbeenfoundtobethemostmotivatingamountforsalesagents,whilestillbeingaffordableforbusinessowners.
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Werecommendrecalculatingyourproductioncosts,laborcosts,andmarketingcostsquarterlytomakesurethispriceisstillappropriateforyourbusiness.YoucanusetheCashRecordsinSectionSeven(ManagingyourCash)tomakesurethepriceisstillOKtocovercosts,keeptheproductaffordableforcustomers,andmakeaprofit.
STEPSIX
Transportationandinstallationcanbebarriersforyourcustomerstobuyyourproducts.Manyofthemdonothavetheirowntruckstotransporttheirlatrines,andmanywouldprefertohaveprofessionalsinstalltheirlatrines.Byofferingtheseservices,youcanensurethatmorepeopleareableandwillingtobuyfromyou.
Mostenterprisesthatoffertheseservicescalculatetransportationfeesbydistancefromtheenterprise.Householdswithin10kmoftheenterprisearechargedoneprice,usuallyaround50,000LAK.Householdsfartherthan10kmarechargedthesetfeeplusasmallerfee(usually3,000LAK)foreachadditionalkilometer.
Mostenterprisescharge100,000LAKforinstallation.Youcantrysettinglowerpricesfortheseservicesasapromotiontosellmorelatrines,orasawaytogainanadvantageoveryourcompetitors.
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!F!G!H!GxH=K!K+F
TILEOPTION NOTILEOPTION
3rings 4rings 3rings 4rings
Transportationlessthan10km
Transportationmorethan10km
#kilometersover10
Addedfeeperkm
Totaladdedcost(K)
Totaltransportationcostover10km(K+F)
Installationfee
FinalPrice+Installation+Transportation(LAK)
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3.HOWTOMAKESALESGOALS
Settingsalesgoalshelpsyoutomotivateyourselfandyourteamtoearnthemoneythatyouwant.Settinggoalsbasedonthecostofproducingthelatrineandrunningyourbusinesshelpsyoutosellenoughtobothcoveryourcostsandmaketheprofitthatyouwant.
So,firstyouneedtolookathowmuchprofityoucanmakeperweekandpermonthbasedontheprofitperlatrine.
HOWMUCHPROFITDOYOUWANTTOMAKETHISMONTH?
Iwanttomake______LAKthismonth.
HOWMANYLATRINESDOINEEDTOSELLEACHWEEKTOMAKETHISMUCHPROFIT?
_____goalprofitthismonth÷4weeks=______goalprofiteachweek
_____goalprofiteachweek÷______LAKprofitperlatrine(calculatedinsection2above)=______weeklysalesgoal
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Atthebeginningofeachmonth,usethetemplatebelowtosetmonthlyandweeklysalesgoalsforyourselfandcommunicatethesegoalstoyoursalesagents.3
Week1 Week2 Week3 Week4 Week5Month:
Date:
Date: Date: Date: Date:
MonthTotal:
Profitgoal
Profitperlatrine
Latrinesalesgoal(profit
goal/profitperlatrine)
3AdaptedfromIDE’sBusinessSkillsTrainingModules
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HOWTOACHIEVEYOURSALESGOALS4
Therearethreethingsyouneedtoconsiderinordertoachieveyourgoals:
1) Canyouproduceenoughlatrinesandkeeptheminstockreadyfordelivery?
2) Howwell-trainedareyoursalesagents?Howmanyhoursandhowhardaretheyworking?Howmanyareonyoursales team?Howwellmanagedarethey?Dotheyhavepersonalweeklytargets?3) Howquicklyarelatrinesbeingdelivered?Aretheydeliveredontime?Arethecustomersreceivingtheircorrectorders?
Thefollowingsectionswilltalkmoreaboutstockmanagementandsalesagentmanagementtoensurethatyoucanreachyoursalestargets.
4AdaptedfromIDE’sBusinessSkillsTrainingModules
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4.HOWTOCALCULATEPRODUCTIONNEEDEDTOMEETWEEKLYSALESGOALS5Customersmaycanceltheirordersifyoudon’tdeliverquickly.Youwillalsogetabadreputationiflatrinesaredeliveredlaterthanthecustomerhasrequested.Youwanttohavemorelatrinesinstockthanyourweeklysalestargetbecause:
1. Ringsandslabsoftenbreakwhiletheyarebeingtransportedonbadroads.(Tip:Thisismuchlesslikelytohappenifyougive yourproductsplentyoftimetodrysothattheybecomeverystrong!)
2. Ifyouhaveverygoodsalesagents,theymightsellmorelatrinesthanyouexpected!
Thissectionwillhelpyoutosetweeklyproductiongoalstomakesureyoucanbuildupenoughstocktomeetyourincomingorders.
5AdaptedfromIDE’sBusinessSkillsTrainingModules
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Usethefrombelowtocalculatehowmanylatrinesyoucanmakeinoneweek.Ifthisnumberislowerthanyoursalestarget,youmayneedtobuymoremoldsofequipmenttobeabletoproduceenoughtoreachyourgoals.
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WITHTHEMOULDSYOUHAVENOW,HOWMANYSETSOFFOURRINGSCANYOUMAKEINONEWEEK?(#OFRINGSYOU
CANMAKEINONEWEEK(ABOVE)/4)=___________________
LatrineParts Timetomakeone(beforeremoving
themould)
Howmanycanyoumakeinonedaywithone
mould?
Howmanymouldsdoyou
have?
Howmanycanyoumakeinoneday?(#madewithonemouldx#ofmoulds)
Howmanycanyoumakeinoneweek?(#youcanmakeinonedayx#ofworking
days)Ring
Slab
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HOWMANYCOMPLETELATRINESETS*CANYOUMAKEINONEWEEK?_______________
*Onelatrineset=4rings+1slab
WHATISYOURWEEKLYSALESGOAL?_____________
CANYOUPRODUCEMORELATRINESINONEWEEKTHANYOURWEEKLYSALESGOAL-YESORNO?________
IFYES,DOYOUHAVEENOUGHLABORTOPRODUCETHISMUCH?
IFNO,HOWWILLYOUMAKESUREYOUCANPRODUCEMOREINONEWEEKTHANYOURWEEKLYSALESGOAL?
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5.HOWTOCALCULATERAWMATERIALSNEEDEDTOMEETSALESGOALS6Thissectionisdesignedtotellyouhowmuchrawmaterialsyouwillneedtomeetyourweeklysalesandproductiontargets.RefertoSectionTwo,StepsOnethroughThreetoseehowthesecostsarecalculated.
RawMaterialsNeededForOnePart Ring Slab
Cement
Sand
Gravel
Wire
CeramicPan
Plasticpitaccesscover
Tiles
6AdaptedfromIDE’sBusinessSkillsTrainingModules
Howmanycanyouproducethisweek?Refertotableonpage15
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HOWMUCHRAWMATERIALSDOYOUNEEDTHISWEEK?
Usethetablebelowtocalculatehowmuchofeachmaterialyouwillneed,andhowmuchitwillcosttobuyorusethatmuchmaterial.
Refertothefirsttableonpage17tofillintheamountofrawmaterialsyouwillneedforoneringorslab.Calculatethetotalrawmaterialsneededtoproduceallringsandslabsfortheweek.Totalthevolumeofallmaterialsneededfortheweektoproducebothringsandslabs.
ThenrefertoStepTwoandThreeinSectionTwoforcostofmaterialsperunittocalculatethecostofeachrawmaterialfortheweek.
Ring Slab Amountfor1
ring(A)#ringsproducedeachweek
Totalmaterialsneededeachweek(AXB=C)
Amountfor1slab(A)
#slabsproducedeachweek
Totalmaterialsneededeachweek(AXB=C)
Totalvolume(AddbothCcolumns)
TotalCost(Totalvolumexcostperunit)
Cement Sand Gravel Wire Ceramicpan
Pitaccesscover
Howmanytileslabswillyoumakethisweek?Howmanyboxesoftilesdoyouneedtobuy?(1boxoftileswillcover1slab)
Totalrawmaterialsfortheweek:
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DOYOUHAVEENOUGHCASHORCREDIRTOPURCHASETHERAWMATERIALSYOUNEED?
IFNO–WHATISYOURPLANTOHAVEENOUGHRAWMATERIALSTOPRODUCETHELATRINESNEEDEDTOMEETYOUR
WEEKLYSALESTARGET?
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6.HOWTOSCHEDULEDELIVERIES
Transporting latrine parts can be difficult, costly, and time consuming. So it’s important to plan deliveries carefully in order toreducethenumberoftripsnecessary.
TIPSFOREASYANDCONVENIENTDELIVERY
• Givecustomers2optionsfordeliverywhentheymaketheirorder.Forexample,1weekfromthetimeoforder,and1monthfromthetimeoforder.Thisway,youcandelivermanylatrinesatonce,insteadofmakingmanytripstodelivereachlatrineseparately.
• Giveyourproductsplentyoftimetodrysotheydonotbreakontheway.Ifmanyofyourproductsbreak,yourcustomerswillconsiderthemlowquality,anditwillalsocostyouextratimeandmoneytoreplacetheparts.
• Packthetruckaccordingtotheinstructionsintheproductionmanual.Thiswillhelpyouoptimizethespaceinyourtrucksoyoucandelivermoreatonce,andhelptoreducebreakingalongtheway.
INTHERAINYSEASON
Somecustomersprefertohavetheirlatrinesdelivered4-6monthsfromthetimethattheyordersothattheycansaveupthemoneytopurchaseandsothatthegroundisnotfloodedwhentheyinstallthelatrine.
Salesagentsshouldencouragecustomerstohavetheirlatrinesdeliveredsoonertoreducethechanceofcancellation.Ifcustomers insiston the4-6monthdeliverydate, salesagents shouldworkwith customers todecide togetheronaday (ordays,dependingonquantity)fordeliverysothatbulkdeliveriescanbemade.
Ifthishappens,youwillhavetoplanverycarefullyandmakesuretobuildupstockinthecomingmonthsinordertobeabletodeliverthehighnumberoflatrinesatthesametimetocustomers.
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It’sbesttoencouragecustomerstohavetheirlatrinesorderedsoonerbecauseitgivesthemlessopportunitytocancel,butitalsohelpsyouhavethecashavailabletomeetthelargenumberofordersthatwillneedtobefilledduringtheharvestseason.
FOREXAMPLE
Saythatyoursalesagentstake500ordersinJulyandAugust.AllofthosepeoplewanttheirlatrinesdeliveredinNovember.
Profitforeachlatrine:100,000LAK
PotentialprofitinNovember:50,000,000LAK
Great!Butthatalsomeansthat ifeach latrinecosts400,000LAKtomake͙.
Cashneededtoproduce500latrines=200,000,000LAK
Soyoucanseehowhavingabuild-upofunfilledorderscanbeaproblemforcashflow.BUT,ifyoucanconvince100ofthemtopayinAugust,100inSeptember,and100inOctober,itwillbemucheasiertosavethemoneyyouneedtofillthebulkorderinNovember.
SOHOWDOYOUCONVINCEPEOPLETOASKFORDELIVERYEARLIER?
• Makeitacompetition:“Whocangettheirlatrineinstalledfirst?”
• Givepeopleatimelimit:“Whenwouldyouliketohaveyourlatrineinstalledinthenextthreemonths.”
• Giveadiscount:“Wewilltake50,000LAKoffoftheinstallationfeeifyouhaveyourlatrinedeliveredbytheendofthemonth.”
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7.MANAGINGYOURCASHINTRODUCTION
Doyouknowhowmuchmoneyyouspendeverydayandhowmuchyoumakeeveryday?Everyweek?Everymonth?
Keepingarecordofhowmuchyouspendandhowmuchyoumakeisimportantbecauseitallowsyoutoseeifyouhaveenoughmoneytomakeinvestmentsinyourbusiness,payyourbills,anditshowsyouhowmuchprofityouaremaking.
Ifyoucanupdateyourcashinandcashoutrecordseveryday,youwillbeabletomakeimportantstrategicdecisionsforyourbusiness.
CASHIN:
Themoneyyoumakeeverydayfromsellingyourproducts.
CASHOUT:
Themoneythatyouspendeverydayonrawmaterials,bills,wages,loanpayments,etc.
CASHIN–CASHOUT=CASHREMAINING(PROFIT)
WhenCASHINisgreaterthanCASHOUT,youhavemadeaprofit!
Butsometimeswhenyouneedtomakeinvestmentsinyourbusiness(forexamplebuyingextraringmouldssoyoucanproducemorerings),yourCASHOUTmightbehigherthanyourCASHIN.SosometimesyourrecordswillshowazeroornegativeCASHREMAINING.Butthisisnormalandyoushouldseeyourprofitcomebackinanumberofweeksormonths,dependingonhowbigtheinvestmentwas.
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Theformbelowwillhelpyoukeeptrackofyourdailycashflow.
Attheendofeachmonth,youcangatheryourdailycashrecordsandseehowmuchcashremainingyouhaveforthemonth.Attheendofeachyear,youcanseehowmuchcashremainingyouhavefortheyear.Thiswillhelpyoumakelongtermplansforyourbusiness.
DailyCashRecord Mon Tues Wed Thurs Fri Sat Sun Week
Total
Date CASHIN Cashreceivedfromlatrinesales
CASHOUTforlatrinebusiness
Cement
Sand
Steelbars
Tile
Labor
Water
Fuel
Commissions
Promomaterials
Interest/loanrepayment
Other TotalCASHOUT CashRemaining
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MonthlyCashRecord Week1 Week2 Week3 Week4 Week5 MonthTotal
Date
CASHIN
Cashreceivedfromlatrinesales
Cement
Sand
Steelbars
Tile
Labor
Water
Fuel
Commissions
Promomaterials
Interest/loanrepayment
Other
TotalCASHOUT
CashRemaining
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Keepingaccuraterecordswillnotonlyhelpyoumanageyourbusiness,butitwillalsomakeyoulookgoodtobankswhenyouapplyforloans!
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8.HOWTOKEEPGOODSALESRECORDSANDFINANCIALRECORDSItisimportanttokeepgoodrecordssothatyoucanpreventproblems,andquicklyidentifyanyproblemsandfixthem.
GOODFINANCIALRECORDSHELPYOUTOMAKESURETHATYOUHAVEENOUGHCASHCOMINGINTOCOVERYOURCOSTS
ANDMAKETHEPROFITTHATYOUWANT
Itcanalsohelpyoutosetpricesandtolowercosts.
Forexample,itcantellyouhowmuchyouarespendingonrawmaterials,andthenyoucanthinkaboutwhetherornotyouneedtofindanewsuppliertoreducethosecosts.
YoucanusethefinancialrecordsinSectionSevenabove(CashINandCashOUTrecords).
GOODSALESRECORDSHELPTOKEEPCUSTOMERSSATISFIEDBYMAKINGSURETHATYOUAREDELIVERINGTHEPRODUCTTHATTHEYWANT,WHENTHEYWANTIT.GOODSALESRECORDSCANALSOTELLYOU:
v Whichtypeoflatrineismostpopular?v HowcanIorganizebulkdeliveriesthisweek?v HowcanIcontactmycustomer?
Below,youwillfindachecklistofalltheimportantthingsthatagoodsalesrecordshouldtrackandanexampleorderform.
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SALESRECORDSCONTENT:ACHECKLIST
___ 1. Customercontactinformation
___ 2. Productspecificationsandcorrespondingprices
___ 3. Optionalservicessuchasdeliveryandinstallation
___ 4. Methodofpayment
___ 5. Datesoforder,delivery,andinstallation,ifapplicable
___ 6. Businesscontactinformation
___ 7. Signatureorthumbprintofcustomer
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Latrine Order Form
Order number:…………… Date:………………
Enterprise name:……………………………….. Tel:……………………………………………
Village:……………………………………….. District:………………………………….
Sales Agent name:……………………………. Tel:……………………………………………
Customer name:………………………………. Tel:……………………………………………
Village:……………………………………….. Unit: ………………………………………...
Photo of product Name Price/Unit Number of Units Total
Slab with tile including 4
rings 440,000 kip
Slab without tile including 4
rings 380,000 kip
Slab with tile including 3
rings 400,000 kip
Slab without tile including 3
rings 340,000 kip
Installation 50,000 kip
Delivery charge: 15,000 kip for deliveries within 10KM; if farther than 10km, charge will be 1,500kip/km/latrine (20%
increase for 4 ring design) ………………..kip
Date of delivery:……………………………………………… (deliver within 15 days)
Total:
Deposit paid: kip
Remaining Balance: Sale agent's signature:……………………………… Customer's signature:…………………………………………
Payment: The sales team or chief of village will visit and collect remaining balance 1 day before delivery. If the full balance is not received at this time, the latrine will not be delivered or installed. Deposits or advance payments will not be refunded if the buyer cancels. The buyer will receive a full refund if the enterprise cancels. Installation: The Enterprise will install the latrine if the full payment is obtained, as mentioned above. The buyer is responsible for digging the pit according to the following specifications: All pits should be 1 meter wide. Pits for 4 ring designs should be a maximum of 1.4 meters deep, and not over 1 meter deep for three ring designs. Pits should be located at least 15 meters from any wells. Two days after installation, the buyer may begin using the latrine and/or build a shelter. Warranty: The Enterprise will repair or replace latrines if there are any problems up to one year after installation.
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9.PROVIDINGGOODCUSTOMERSERVICEItisnotenoughtoofferthelatrinethatyourcustomerswant.Itisalsoimportanttoprovidegoodcustomerservice.Onceyouattractcustomersbecauseoftheproductsandservicesthatyouoffer,youwantthemtokeepcomingbackandtorefertheirfriendsandfamilytoyou.
WORDOFMOUTHISTHESINGLEMOSTIMPORTANTFORMOFADVERTISEMENT.
It is very important that quality is consistently high. If a customer receives a poor quality product or service once from abusiness,itisverydifficulttoregainhisorhertrust.
CUSTOMERSERVICESKILLS
Customerserviceisprovidedbyeveryonewhointeractswithcustomers.Thatmeansthatyou,yoursalesagents,andanyotherstaffthatwillinteractwithyourcustomersshouldbewellpreparedtoprovidegoodcustomerservice.Itisyourresponsibility,asabusinessowner/manager,tomakesurethatallofyourstaffaretrainedtoyourstandards.
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GOODCUSTOMERSERVICE
1. BuildConfidence:Customersneedtohaveconfidenceinyourabilitytoprovideaproductorservicetothem.Thatconfidencecomesfromyourtechnicalabilityandfromyourabilitytoexplainthingsclearly.
2. ShowYouCare:Showthecustomerthatyoucareabouttheircomfort,happiness,andhealthbyusingpositivewordsandactionswhenyouoryouremployeesaretalkingwiththecustomer.
3. MaketheExtraEffort:Makeaspecialefforttomakethecustomerhappytoshowthatyoucareaboutthem.
4. HelpSolvetheProblem:Lookfordifferent,creativewaystohelpcustomerssolvetheirproblems.Thisrequiresgoodproblem-solvingskillsfrombusinessownersandstaff.Forexample,givecustomersawarrantysothatifyourproductbreakswithinoneyear,youwillreplaceitforfree.Thechanceofthishappeningislow,butthepromisewillgivethecustomeragoodimpressionofyourbusiness.
BADCUSTOMERSERVICE
1. Makingthecustomerfeelthatthestaffdoesnotcareaboutthem.
2. Hostility,unfriendliness,andthoughtlessness,oranyotherbehaviorthatsaystothecustomer,"Goaway!"
3. Misleadingthecustomeraboutthequality,cost,ortimingofaproductorservice.
4. Eitherignoringphonemessages,orrespondingtoolateorinawaythatisunclearorincomplete.
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CUSTOMERSERVICECHECKLIST7
Areyouandyourstaffdoingthethingsinthelistbelowtoprovidegoodcustomerservice?___Speaksclearlywhentalkingtocustomers.___Caresaboutthecustomer’sfeelingsandopinions.___Isalertandattentivewhentalkingwithcustomers.___Followsthroughwithpromisesmadetocustomersinatimelymanner.___Maintainsaneatappearance;makesapositiveimpressiononthecustomer.___Showsthoroughunderstandingoftheproductsandservices.___Developseffectivesolutionstocustomers'needsandproblems.
7AdaptedfromIDE’sBusinessSkillsTrainingModules