Advice You - Business

Successful business owners understand that the numbers that drive their business are crucial to maintaining control of cash flow. If you

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

do not understand them, ask your accountant for help. Too often, business owners enter records into a computerized accounting program dur

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

ng the year but don’t review them until they receive their annual tax return. Every quarter, or better yet, monthly, print out your Profi

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

& Loss statement and your Balance Sheet. Ask yourself these 10 questions. The answers will help you analyze the performance of your busi

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

ness.

1. How Profitable is your Company? Look at your Balance Sheet and find the Retained Earnings number. This cumulative figure rec

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

rds all the income and losses incurred since the business was started. It is adjusted annually.

2. What is your Gross Profit in $$’s and

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

in percentage? Watch this number closely. Even small variations month to month make the difference in profit or loss for the month.

3

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

. Do you understand Gross Profit and Mark-up are not the same? If you mark your services or goods up 50% your gross profit will only be

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

33 1/3%. Don’t count dollars of profit that are not there.

4. Do you have Inventory? Comparing your gross profit month to month will

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

lert you to unusual variances in your net Inventory.

5. What are your Net Expenses? Are they consistent month to month? By recording

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

our expenses on a spreadsheet you will be able to spot variations that lead to problems.

6. What areas need improvement? Reviewing nu

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

mbers monthly permits you to make adjustments in any area of your business that is not performing to your expectation. Inspect what you e

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

pect.

7. How do your everyday activities affect your bottom line? Do you budget for your marketing activities? Are you aware of how m

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ch you spend for networking events, client luncheons, membership dues, trade show attendance, conferences, etc? Are the expenses for the

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

se items over or under budget? One line item can make the difference between profitability and loss.

8. Do you analyze your income line

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

items? What makes up this figure? Did you record all earnings for the month?

9. Does the Cash in Bank figure on your Balance Sheet acc

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

rately reflect your bank statement? The ending balance on your bank statement equals Cash in Bank on your Balance Sheet. Do you record

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

all interest paid, bank fees, merchant charges?

10. What are the key numbers that drive your business?

Every industry has different ben

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

hmarks. Identify which numbers are important to the profitability of your business. Monitor them for an ongoing snapshot of how you are

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

oing. Be sure the measurements you monitor are aligned to your company’s strategic business goals as well as individual performance goals

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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When it comes to inducting new employees into your business you only get one chance. Get it wrong and you have started to sow the seeds of doubt in the mind of your new starter in the first few weeks. Get it right and it will make a huge difference to how the person settles in. Without being perfectionist, the key is to make sure that every new starter feels excited and positive that they have made the right choice in joining your business.

The number one most costly issue for small business owners today is “low productivity” followed closely by “selecting employees.” This article presents the five hiring best practices used by most of the Fortune 500. By incorporating these practices into their own hiring process, small business owners will eliminate the two most costly business issues.

Many people who sell find themselves dreading it, doing it stressfully and being reluctant with networking. This is one of a series of articles to turn networking misconceptions into better understandings.

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