Do you have an item whose price and/or supply fluctuates? Of course you do, because we all do. Every business has seasons. Supply goes up and down as does demand for a certain product. I was talking to my mechanic recently and he said that he can count on the fact that at the start of the school year and while the fair is in town, business will be slow. Why those times? He doesn't know, but it happens like clock work every year. These are predictable occurrences, but what about the unpredictable occurrences like the US getting hit by multiple major hurricanes? That's why it's good to have systems in place for both the expected and unexpected. Not just a disaster recovery plan, but a plan for the case when, while demand stays the same, supply is dramatically reduced.
Does you current accounting system or the team behind it help to handle these issues?
Recently I was at a youth camp that has a philosophy of no-debt, a bare-bones crew, and to be as efficient as possible. The no-debt aspect was impressive given that the last building cost over 10 million. The bare-bones crew was in order to be able to offer more amenities, which they did. What this means is that the youth at the camp have to "pull their weight". Instead of having a large kitchen staff, the youth serve each other and they all clean up. At the end of the week, the youth tidy up the cabin and basically take on a philosophy of leave it like you found it. They also did things like automatic lights. They come on when you walk in and after a period of inactivity, they turn off. In talking to one of the leaders, they said that they always try to learn from other camps, listen to the problems that they have experienced, and then try to improve how they operate. This mentality of being more efficient, planned, streamlined, focused, and open-minded could save a company in the long run. As the year progresses on, try to think of ways that you can improve operations and create a better foundation for the company.