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