This article is for orthopedic company leaders looking ways to reach profitability or improve cash flow. Market conditions have tightened, as its more important than ever to reach profitability.
Some of these 12 are short-term wins, some are long-term wins. Some are obvious, some are new ideas. There should be nugget in here for everyone.
1/ Do an annual Reduction-in-Force of 10% of the employees (the bottom 10% aren't really contributing anyway). The hard work is figuring out who isn't contributing.
2/ Keep your star employees productive, happy and pointed in the right direction. It's very expensive and disruptive to replace good people if they leave.
3/ Re-negotiate payment terms with your suppliers.
4/ Rearrange sales force commissions and asset allowances. In other words, give the highest performing sales people higher commissions and more inventory… and give the lowest performing sales people lower commissions and less inventory.
5/ Sell off idle assets. Assets that are not actively being used, sitting around costing money, rather than generating money need to be sold for cash. It makes no sense to hold on to assets that have become expenses. You can use the cash made to...
