Just over 6 months ago I blogged about my four New Years resolutions for our business: Reduce AR, Reduce inventory costs, Reduce staff turnover and Spend more time on non-work related activities. At the time I was expecting to achieve only one of these goals, however, someone left a comment that they expected me to succeed on at least two of the four. The challenge was on! Now that we are half way through the year it is time to evaluate my progress.

AR

At the beginning of the year, our “Days to Accounts Receivables” (DAR) was 60 days. This is a measurement that describes on average how long it takes to collect on an account. Some people pay right away and some take months to pay, and our overall average was 60 days. If we have to pay our suppliers within 30 days, we would either have to use money saved in the bank or use our line of credit to pay them, since it will take another 30 days on average to collect from our clients. My goal was to reduce that amount as much as possible. The good news is that as of June our average DAR is now down to 30 days, which is a huge success. How did we make such a dramatic improvement? Basically we insisted that all new clients pay at the time of service

and that any established client who had been slow to pay would be COD going forward. We have not lost any old clients with this policy and all new clients are expecting to pay at the time of service. Furthermore, we have more cash on hand.

Reduced Inventory

In 2009 we counted our inventory at the end of the year. This year we are performing a full count twice, but I will not be able to compare 2010 to 2009 until year-end. However, we are still taking measures to minimize our on-hand inventory. For example, we are preparing quarterly maximum and minimum levels for a number of popular items. This way we won’t overstock an item in the fall that we only sell a lot of in the spring. Much like our reduced AR, less money on our shelves equals more money to pay our bills.

Reduced Staff Turnover 

We have lost one full time employee this year. She left us to pursue a job in the field of her college degree, and we knew at some point this would happen. We will see what the rest of the year brings but so far we have lost fewer staff at this point in the year compared to all of last year. We will see how the rest of the year turns out before we can consider this a success.

More Personal Time

I am certainly traveling less this year and working fewer horse shows on the weekends. The key to success here is very simple. I have learned to say no and there is more acceptance of our newer associates by our clients.

How are your resolutions going? Do you have any successes to share?

Original Blog Reference – How-to-Keep-a-New-Years-Resolution

 

 

 

 

 

 

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  5. Mike,

    Great job on accounts receivable progress, this is especially helpful for cash flow in a down economy. The metric, average days A/R is one of the most important cash flow metrics I use. Four years ago this number averaged 48 days four our practice, and is now 19-21 days with a net 30 day payment/billing policy. Breaking out payment at time of sales and segmenting the differences between hospital, field service, and dvm providers can give you powerful management choices. Ideally payment at time of service for all activity is best, but unfortunately not a realistic expectation for most practices.

    On another note, inventory management and cost controls are a huge opportunity for all of us. Currently it is also the most difficult to setup and manage. Keep at it..

    Fact – Revenue nationwide has decreased for most equine practices, and our operating expenses have increased…I haven’t seen a price decrease by our pharma vendors, have you? The end story – its not good for the bottom line and the future. We have to all run our businesses more efficiently and focus on the profitable aspects of our services.

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  11. I would like to thank you for the efforts you made in writing this post. I am hoping the same best work from you in the future as well. In fact your creative writing abilities has inspired me to start my own blog now.

  12. Wow nice information you have shared here.  Actually Google made searching of information easy on any topic. Well keep it up and post more interesting blogs

  13. You really make it seem so easy with your presentation but I find this topic to be really something which I think I would never understand. It seems too complicated and very broad for me. I am looking forward for your next post, I will try to get the hang of it!

  14. Im impressed, I must say. Very rarely do I come across a blog thats both informative and entertaining, and let me tell you, youve hit the nail on the head. Your blog is important; the issue is something that not enough people are talking intelligently about. Im really happy that I stumbled across this in my search for something relating to this issue.

  15. All I can say is keep it up. This blog is so necessary in a time when everyone just wants to talk about how many people someones cheated on their wife with. I mean, thanks for bringing intelligence back to the web, its been sorely missed. Great stuff. Please keep it coming!

  16. I just cant stop reading this. Its so cool, so full of information that I just didnt know. Im glad to see that people are actually writing about this issue in such a smart way, showing us all different sides to it. Youre a great blogger. Please keep it up. I cant wait to read whats next.

  17. I cannot WAIT to read more of this. I mean, you just know so much about this. So much of it Ive never even thought of. You sure did put a new twist on something that Ive heard so much about. I dont believe Ive actually read anything that does this subject as good justice as you just did.

  18. Can I just say what a relief to find someone who actually knows what theyre talking about on the internet. You definitely know how to bring an issue to light and make it important. More people need to read this and understand this side of the story. I cant believe youre not more popular because you definitely have the gift.

  19. Its like you read my mind! You seem to know so much about this, like you wrote the book in it or something. I think that you could do with some pics to drive the message home a bit, but other than that, this is great blog. A great read. Ill definitely be back.

  20. Im impressed. I dont think Ive met anyone who knows as much about this subject as you do. Youre truly well informed and very intelligent. You wrote something that people could understand and made the subject intriguing for everyone. Really, great blog youve got here.

  21. Wow nice information you have shared here.  Actually Google made searching of information easy on any topic. Well keep it up and post more interesting blogs.

  22. Im impressed, I must say. Very rarely do I come across a blog thats both informative and entertaining, and let me tell you, youve hit the nail on the head. Your blog is important; the issue is something that not enough people are talking intelligently about. Im really happy that I stumbled across this in my search for something relating to this issue.

  23. This is definitely a blog that people need to get behind. The problem is, no one wants to do a great deal of reading and not have something else to stimulate the mind. This is the internet, after all. Maybe if you added a video or two to emphasise your point. Ill stick around, FOR SURE. But, I dont know if others will.

  24. Why didnt I think about this? I hear exactly what youre saying and Im so happy that I came across your blog. You really know what youre talking about, and you made me feel like I should learn more about this. Thanks for this; Im officially a huge fan of your blog.

  25. Thank you for this blog. Thats all I can say. You most definitely have made this blog into something thats eye opening and important. You clearly know so much about the subject, youve covered so many bases. Great stuff from this part of the internet. Again, thank you for this blog.

  26. Youre so cool! I dont think Ive read anything like this before. So good to find somebody with some original thoughts on this subject. Thanks for starting this up. This blog is something that is needed on the web, someone with a little originality. Good job for bringing something new to the internet!

  27. Good luck getting people behind this one. Though you make some VERY fascinating points, youre going to have to do more than bring up a few things that may be different than what weve already heard. What are trying to say here? What do you want us to think? It seems like you cant really get behind a unique thought. Anyway, thats just my opinion.

  28. I must say, youve got one of the best blogs Ive seen in a long time. What I wouldnt give to be able to create a blog thats as interesting as this. I guess Ill just have to keep reading yours and hope that one day I can write on a subject with as much knowledge as youve got on this one!

  29. Aw, this was a really quality post. In theory I’d like to write like this too – taking time and real effort to make a good article… but what can I say… I procrastinate alot and never seem to get something done.

  30. Im impressed. I dont think Ive met anyone who knows as much about this subject as you do. Youre truly well informed and very intelligent. You wrote something that people could understand and made the subject intriguing for everyone. Really, great blog youve got here.

  31. Im a huge fan already, man. Youve done a brilliant job making sure that people understand where youre coming from. And let me tell you, I get it. Great stuff and I cant wait to read more of your blogs. What youve got to say is important and needs to be read.

  32. I hope you never stop! This is one of the best blogs Ive ever read. Youve got some mad skill here, man. I just hope that you dont lose your style because youre definitely one of the coolest bloggers out there. Please keep it up because the internet needs someone like you spreading the word.

  33. No matter how many times I read it, it never gets old. You definitely hit the nail on the head on this one. This is something people need to know about. Your blog is really incredible and the design is really top notch. Really, youre blog is incredible. Keep going, man. Keep going!

  34. I dont know what to say. This is definitely one of the better blogs Ive read. Youre so insightful, have so much real stuff to bring to the table. I hope that more people read this and get what I got from it: chills. Great job and great blog. I cant wait to read more, keep em comin!

  35. This is the good step u have taken. Thanks for writing this, it’s clear that you have spent a good amount of time on your sites development.

  36. How could I have missed this blog! Its incredible. Your design is flawless, like you know exactly what to do to do make people flock to your page! I also like the perspective you brought to this subject. Its like you have an insight that most people havent seen before. So great to read a blog like this.

  37. You sure do know what youre talking about. Man, this blog is just great! I cant wait to read more of what youve got to say. Im really happy that I came across this when I did because I was really starting to get bored with the whole blogging scene. Youve turned me around, man!

  38. This layout is so stellar. How did you manage to make a blog thats as smart as it is sleek? I mean, its like an Aston Martin –smart and sexy at the same time. Ive got to say, the layout alone made me come back to this blog again. But now that Ive read what youve got to say, Ive got to share it with the world!

  39. How-do-you-do, just needed you to know I have added your site to my Google bookmarks because of your extraordinary blog layout. But seriously, I think your site has one of the freshest theme I’ve came across. It really helps make reading your blog a lot easier.

  40. Great stuff from you, man. Ive read your stuff before and youre just too awesome. I love what youve got here, love what youre saying and the way you say it. You make it entertaining and you still manage to keep it smart. I cant wait to read more from you. This is really a great blog.

  41. Great stuff from you, man. Ive read your stuff before and youre just too awesome. I love what youve got here, love what youre saying and the way you say it. You make it entertaining and you still manage to keep it smart. I cant wait to read more from you. This is really a great blog.

  42. I have to say, I dont know if its the clashing colours or the bad grammar, but this blog is hideous! I mean, I dont want to sound like a know-it-all or anything, but could you have possibly put a little bit more effort into this subject. Its really interesting, but you dont represent it well at all, man.

  43. Sometimes I just think that people write and dont really have much to say. Not so here. You definitely have something to say and you say it with style, my man! You sure do have an interesting way of drawing people in, what with your videos and your words. Youve got quite a one-two punch for a blog!

  44. I was very pleased to find this site. I wanted to thank you for this great read!! I definitely enjoying every little bit of it and I have you bookmarked to check out new stuff you post. Big thanks for the useful info

  45. Fantastic blog! I dont think Ive seen all the angles of this subject the way youve pointed them out. Youre a true star, a rock star man. Youve got so much to say and know so much about the subject that I think you should just teach a class about it…HaHa!

  46. This is the perfect blog for anyone who wants to know about this topic. You know so much its almost hard to argue with you (not that I really would want…HaHa). You definitely put a new spin on a subject thats been written about for years. Great stuff, just great!

  47. The next time I read a blog, I hope that it doesnt disappoint me as much as this one. I mean, I know it was my choice to read, but I actually thought youd have something interesting to say. All I hear is a bunch of whining about something that you could fix if you werent too busy looking for attention.

  48. Another good read. Bookmarked your site this time.

  49. Im not going to say what everyone else has already said, but I do want to comment on your knowledge of the topic. Youre truly well-informed. I cant believe how much of this I just wasnt aware of. Thank you for bringing more information to this topic for me. Im truly grateful and really impressed.

  50. Great. ..you have beautifully presented your thoughts in this blog post.

  51. Thank you for this great information, you write very well which i like very much. I am really impressed by your post

  52. This is one of the most incredible blogs Ive read in a very long time. The amount of information in here is stunning, like you practically wrote the book on the subject. Your blog is great for anyone who wants to understand this subject more. Great stuff; please keep it up!

  53. You made some good points there. I did a search on the topic and found most people will agree with your blog. Thanks

  54. This is a smart blog. I mean it. You have so much knowledge about this issue, and so much passion. You also know how to make people rally behind it, obviously from the responses. Youve got a design here thats not too flashy, but makes a statement as big as what youre saying. Great job, indeed.

  55. What I dont understand is how youre not even more popular than you are now. Youre just so intelligent. You know so much about this subject, made me think about it from so many different angles. Its like people arent interested unless it has something to do with Lady Gaga! Your stuffs great. Keep it up!

  56. Your blog is fine. I just want to comment on the design. Its too loud. Its doing way too much and it takes away from what youve got to say –which I think is really important. I dont know if you didnt think that your words could hold everyones attention, but you were wrong.

  57. This layout is so stellar. How did you manage to make a blog thats as smart as it is sleek? I mean, its like an Aston Martin –smart and sexy at the same time. Ive got to say, the layout alone made me come back to this blog again. But now that Ive read what youve got to say, Ive got to share it with the world!

  58. This is the perfect blog for anyone who wants to know about this topic. You know so much its almost hard to argue with you (not that I really would want…HaHa). You definitely put a new spin on a subject thats been written about for years. Great stuff, just great!

  59. I cannot WAIT to read more of this. I mean, you just know so much about this. So much of it Ive never even thought of. You sure did put a new twist on something that Ive heard so much about. I dont believe Ive actually read anything that does this subject as good justice as you just did.

  60. You sure do know what youre talking about. Man, this blog is just great! I cant wait to read more of what youve got to say. Im really happy that I came across this when I did because I was really starting to get bored with the whole blogging scene. Youve turned me around, man!

  61. I just cant stop reading this. Its so cool, so full of information that I just didnt know. Im glad to see that people are actually writing about this issue in such a smart way, showing us all different sides to it. Youre a great blogger. Please keep it up. I cant wait to read whats next.

  62. I cannot WAIT to read more of this. I mean, you just know so much about this. So much of it Ive never even thought of. You sure did put a new twist on something that Ive heard so much about. I dont believe Ive actually read anything that does this subject as good justice as you just did.

  63. This is such a great resource that you are providing and you give it away for free. I love seeing websites that understand the value of providing a quality resource for free.

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