Archive for June, 2008
Company Up And Running Just 2 Hours After Major Fire
Posted on June 30th, 2008 by kouvin, under Businesses.
You might think that something as major as a building fire could put a serious dent in the productivity of any office, to put it mildly. Destruction of property equipment, furniture and files are almost certain. How much in terms of assets would be lost and for how long? What about the company’s mission critical data? Could it ever be replaced? Computers (especially the magnetic disks contained within a modern hard disk drive) are very sensitive to heat and critical data is likely to be irretrievable from a machine that has been melted by the high temperatures of a building fire.
So just how can a headline like the one in this article be plausible? How can a company suffer something as destructive as a major fire and yet be up and running just two short hours after the flames have settled and indeed, when the office is still smoldering and very much non-conducive to work (to say the least)?
Property, furniture and equipment can be easily replaced (that’s what insurance is for). Temporary desks and chairs can be leased or rented quickly and easily. New telephone equipment and computer hardware can be purchased. But how do you replace your company’s mission critical data?
The answer is simple: Online Data Backup.
By using an online secure backup solution and storing important, mission critical data files in a secure offsite facility, your company can avert disaster and be up and running even before the fire has been put out.
Here’s how: When you set up an account with an online backup service provider you or your company will have the ability to back up any amount of critical data on a schedule you set. You can back files up monthly, weekly, daily, or even hourly depending on your needs. You can specify certain subsets of files to be backed up every X amount of days, and other subset to be backed up at completely different intervals, which is not only convenient but efficient as well. By allowing this level of granularity in the backup strategy you can be sure that you will have the most up to date versions of your critical backed up files, and most importantly, have this data available and accessible to you or your IT department on a 24 hour basis. Whether it’s Christmas day, or crunch time in Q3, you can be certain you will have access to your files no matter what happens to the machines they were generated on.
Only offsite backup solutions can provide the safety and security necessary to get your company back up and running even in the face of the most menacing disaster.
Your Data is Your Life. Protect it!
Harald Anderson is a freelance writer and webmaster for http://www.online-remote-data-backup.com an online backup service. Experience the Digital Peace of Mind that safe, secure, encrypted online data backups can offer. Online Backups
Technorati tags: data files company critical online
39 Comments
Discover What Your Financial Reports Are Saying
Posted on June 28th, 2008 by kouvin, under Businesses.
The easiest way to figure out the health of your company is by reviewing your financial reports. Don’t start pulling your hair out yet. There are a few key reports you should, at the bare minimum, be reviewing regularly on a monthly basis. Those reports are your income statement (A.K.A. PandL or profit and loss statement), your balance sheet and your cash flow statement. “Easier said than done, you say”? Well it is not so hard if you have a little useful information under your belt.
The income statement shows the activities of the business during the period covered. It shows the income and expenses of the business during that period and the profit or loss that result. To put it simply the name is just as it implies. It is a snapshot of whether or not you made a profit. Keep in mind you must look at all your financial reports and not just one report, to get a true gauge of your company’s well being.
You must ask yourself the following questions when reviewing you income statement:
1. How much profit did you expect to have?
2. If you are at a loss, what caused it?
3. Are your expenditures too high?
4. Is your pricing too low?
Once you have been reviewing your reports regularly, it will be easy to pick out any inconsistencies. Hopefully, with any luck, the results from your income statement won’t be a surprise and you will have a net profit. If you are at a loss, now is the time to take a closer look and come up with viable solutions to turn things around quickly, the faster the better. If you can not come up with useful answers to the above questions, you should definitely consult with your financial professional.
The balance sheet is another report that should be monitored on a regular and consistent basis. The balance sheet shows your assets, liabilities and capital at a specific point. It should be generated monthly, quarterly or annually when the books are closed. The balance sheet is a snapshot of the worth of your company. Assets-Liabilities =Net Worth
Assets-An asset is anything you own or value.
Liabilities-Liabilities are the debts your business owes.
Balance sheets are fairly easy to read. They show the company’s condition on any given date. A good way to gauge how the company is doing is by comparing balance sheets for the company at different periods. This will give you a good idea of the market trends your company goes through over a span of time. Be consistent, know your company and read between the lines.
What can be more important than cash? There is no getting around the fact that it is VERY important to track cash flow. This is the one area that can make or break your business.
What is a cash flow statement, you ask? The cash flow statement explains how a company obtained and used cash during the accounting period. There are inflows and outflows. Cash flows include any cash in or out generated from operating, investing and financing activities. The bottom line will tell you if you have an increase in cash or a decrease in cash. If you have a decrease, you have a problem. Using the cash flow statement, you will be able to quickly analyze what needs to be done to make swift corrections.
Your financial professional can assist you with your financial reporting. Make sure you get a thorough explanation from them as too what needs to be done. You hire them to advise you and not just hand you meaningless reports. After all, if you don’t know what you are reading, they may as well be meaningless. You need to know exactly what the big picture means and what the bottom line is costing you.
In any case, you should be reviewing all your financial statements often in order to make quick adjustments. This will allow you to ultimately be more profitable and productive, after all isn’t that what you are in business to do, make money, not loss it.
Where can you get these statements? From your accountant or reports can be generated from your accounting software. Remember no one report can give you everything you need. It is important to look at your income statement, balance sheet and cash flow statement on a regular basis. Always use your best judgment when making decisions based on the financial reports.
Elizabeth Hall, owner of Smart Office Help, Inc., offers ways for your business to save valuable time and money, by providing administrative and bookkeeping services to busy business owners. Contact Elizabeth Hall at 407-884-7755 for your personalized consultation. Sign up for your FRE*E Business Success Newsletter on our website http://www.smartofficehelp.com or send blank email to [mailto:paperclip@getresponse.com] [mailto:PaperClip@GetResponse.com]PaperClip@GetResponse.com. See Special Reports to increase your wealth http://www.smartofficehelp.com/specialreports.htm .
Technorati tags: cash company statement financial balance
39 Comments
Double Your Profits Now
Posted on June 27th, 2008 by kouvin, under Businesses.
I just thought I would share a little “wisdom” with you
that I learned the “hard” way over the past 12 years
of running online businesses. Hopefully, some of you
will be able to benefit right away from what took me
YEARS to figure out and finally DO. It was the major
difference in finally finding big success online.
1. Have many Internet projects you are working on?
Have many ideas you are developing that you want to
make money with?
YOU’RE IN DEEP DOO-DOO AND YOU DON’T EVEN KNOW IT.
One of the hardest lessons I had to learn was that
working on several projects at the same time was
literally the KISS OF DEATH for my online ventures. I
was under the impression that if I could create TEN
little online ventures that could each make a measily
$2,000/month, then when the day came that they were
all online I’d be making $20K/month.
Take it from me, that will NEVER happen.
I once had over 20 projects being developed at
the same time. I even had a TEAM of employees
at that time to do it. It still FAILED.
FOCUS. THAT’S THE SECRET TO MAX PROFITS.
Just as you cannot make a million dollars without
making just ONE DOLLAR first (there’s no other way
around that order) you really can’t succeed online
unless you work and FOCUS on just ONE PROJECT and work
on it until it’s profitable. Then and only then should
you work on Project #2.
It’s too easy for entrepreneurs like us to surf around
the Internet and see opportunity everywhere. It’s too
easy to come up with yet another new “plan” to create
yet another little venture — often sidetracking us
from our original project.
So stop working on multiple projects at the sametime
– at least not until you have ONE project making you
enough money that you can sitback and relax and “play
around” with a 2nd and 3rd and 4th project. Until you
create just ONE project that is able to support your
lifestyle you have no reason to be working on other
projects. YES, many people will disagree with me, but
it’s a FACT.
The way to succeed online is to FOCUS. It’s better to
do one thing “great” than to do many things “fair”. If
your primary project is just not growing to the size
you want it to to support your lifestyle, then you
should probably focus on another project instead. Pick
another market. Do some research. Don’t be afraid to
try something else.
DON’T FALL IN LOVE WITH YOUR PROJECTS.
If you give them an honest effort and they prove not
to be as profitable as you want, don’t be afraid to
DUMP THEM. Online ventures are very inexpensive to
start. Don’t be afraid to bail out on a failing
project and start another to focus on.
You’ll make a lot more money by making one project as
best as you possibly can. Instead of spending your
time trying to get another project going, work on
GROWING your original project — go out and get more
affiliates or test more advertising campaigns. THEN
work on creating a backend product that compliments
your initial product/service.
MILK YOUR MARKET.
Work on making your original project as big as possible.
When you can’t do anymore, THEN considering starting a
second project.
2. Make Lists And Prioritize Based On One Thing — PROFITS.
You should do “brain dumps” often. Pour everything in
your head onto paper. Get everything off your mind. We
all get a gazillion ideas everytime we surf around.
Don’t clog your mind with these ideas, write them
down.
THEN RELAX AND STOP DWELLING ON THEM.
You don’t need to let these ideas encompass your thoughts —
they are safe on paper or in a computer file you’ve created to
note them.
Make a list of “tasks” you need to work on for your
business. Write down every conceivable thing you’d
like to accomplish. Then prioritize this list from top
to bottom based on what will you make you the most
money or have the biggest impact on your bottom line.
It’s funny how we often will spend a lot of time on
tasks that don’t necessarily bring in new profits for
us. So work on those things that will most directly
affect your bottom line FIRST — then work on the rest
of the list.
Also work with a better PRODUCTIVITY “BALANCE”. Plan
to work 3-4 hours a day working only on some tasks on
your list. As Internet entrepreneurs it’s too easy to
surf this site and other sites and PROCRASTINATE. The
Information Age makes it too easy to procrastinate –
because we can NEVER know everything there is to find
online, so we can surf INDEFINITELY.
Kill your web browser for a few hours a day if you
don’t need it to accomplish the work you need to do.
Surf only when you’ve accomplished your day’s tasks.
Same with email. Close your email client if you don’t
need it.
(AND HERE COMES A “BIGGIE”)
3. STOP TRYING TO COME UP WITH THE NEXT “BIG THING”.
LET OTHER PEOPLE *SHOW YOU* WHAT’S MAKING MONEY.
For many years of my life as an entrepreneur I was
trying to come up with the next “Big Idea”. I was
always trying to innovate. I was always trying to
invent something. I finally realized that it’s much
easier to make money THE LAZY WAY.
Let other people do all the hard work for you. Let
other people figure out what people want to buy. Then
you can DIFFERENTIATE yourself and offer something
similar to the same market. No, don’t copy off of
people. But create a product that compliments a
popular product/service. Not only have you created
something to offer to that same “hot” market, you have
also created something that makes for the perfect JV
for that original person that “showed you” the market.
Online, you can find out ANYTHING about any business.
Do some research and check out other successful people
online. Notice what kind of ad copy they use.
Subscribe to their ezines or autoresponder series. See
what they send you — realize WHY. Buy your
competitors’ products. See what they sell you on the
backend. Figure out HOW they are making money.
THEN EMULATE SUCCESS.
Stop trying to do things the HARD WAY. Keep an eye on
people that have already figured it out.
OBSERVE ADVERTISING
Check out the keywords for your market. Notice the
companies that are bidding for your keywords. Keep an
eye on these listings for at least a couple of weeks.
The companies that remain at the top are most likely
MAKING MONEY with that advertising or they wouldn’t
keep paying for it (unless it’s some Fortune 500
company just wasting money). Go to their site and see
WHAT they are selling. How much they are selling their
product for. What autoresponder series they might be
using. What their offer is. Buy their product. Figure
out their backend.
Do a little RESEARCH and you can find out the exact
“blueprint” for success in any market.
AND LAST BUT NOT LEAST…
4. Be proactive.
If you want more subscribers, go get them. If you want
to bring more traffic to your site, go find some
partners that can send it to you. If you want more
email subscribers, create more ways for people
to opt-in and take more advantage of the traffic you
already have.
Don’t sit back and “hope” your business grows, MAKE IT
GROW. No matter what your goals are, you CAN make them
happen if you TAKE ACTION to make it happen.
This is your year to do it. Make it happen.
—————————————–
John Reese is an Internet Marketing pioneer that has
been actively marketing online since 1990. John has
sold millions of dollars worth of products and services
online and his network of Web Sites have received over
1.4 BILLION Web Site visitors since their inception. You
can learn more about John, his home study courses,
and subscribe to his free ezine by visiting: http://www.marketingsecrets.com
Technorati tags: work dont online project making
50 Comments
So You Think You’re Hopeless With Figures
Posted on June 27th, 2008 by kouvin, under Businesses.
“It’s no good! I’m just *hopeless* with figures!”
If you’ve ever said that to yourself then don’t worry - you’re not alone.
Many people believe themselves to be math phobic or “numerically challenged”. However the fact is they are probably not hopeless at all…
“It’s no good! I’m just *hopeless* with figures!”
If you’ve ever said that to yourself then don’t worry - you’re not alone.
Many people believe themselves to be math phobic or “numerically challenged”. However the fact is they are probably not hopeless at all…
Most likely they had an unfortunate incident in their past. Perhaps they missed some crucial lessons in school and never caught up. Or maybe they suffered a humiliating experience in the math class.
Whatever the reasons, math ‘difficulties’ can be overcome with a little determination and by looking at the subject in a different way.
Here are 5 ways to get over your numbers ‘block’ and start turning figures into friends:
1 - Give Them A Chance!
Begin to look carefully at figures instead of just ’switching off’ when they come into view.
Next time you get a receipt at the restaurant or for goods you’ve bought, take a good look at it. There may be some numbers that don’t mean anything but others will make sense.
So as a first step: don’t ignore numbers. They can give you a lot of useful information if you’ll just give yourself a chance to absorb what they are saying.
2 - Don’t Lose Them, Use Them!
Begin to use numbers more in your daily life.
Start checking your change in the shop
Check your bills too.
Study your bank statement carefully
If you get confused, don’t worry, it happens to everyone. (Some bills seem to be designed to confuse!)
Just take in what you can and leave the rest.
3 - Take The Easy Route
See if you can spot the easy way to do everyday math sums.
For example, suppose you need to find: 7 8 3.
Instead of starting at the left and adding as you go, you may notice that the 7 and 3 make a nice round 10. Simply tag on the 8 and you get 18 altogether.
The above technique - called “looking for 10s” - is a useful trick when adding numbers.
Try some for yourself:
8 6 2 6 4
9 3 7 5 1
13 6 7 14
4 - Notice Patterns
Another thing to practice is seeing patterns in numbers. This makes them easier to remember and to work with.
For example, 23434 contains a simple pattern.
So does 9639.
And 51015 is a ‘palindrome” - it’s the same backwards.
5 - Make Them ‘Real’
Numbers may contain memorable digits like dates.
For example, 217761.
If you look carefully, you’ll notice it contains the year of the signing of the American Declaration of Independence.
A number could contain:
birthday numbers of yourself, family, or friends
figures from a telephone number or dial code
numbers of a house you have lived in
Or some other kind of digit combination that you can relate to.
Once you can relate numbers to the ‘real world’, you’re fast on the way to becoming familiar with them.
And when you get to know them, you and numbers can become the best of friends for life!
Most likely they had an unfortunate incident in their past. Perhaps they missed some crucial lessons in school and never caught up. Or maybe they suffered a humiliating experience in the math class.
Whatever the reasons, math ‘difficulties’ can be overcome with a little determination and by looking at the subject in a different way.
Here are 5 ways to get over your numbers ‘block’ and start turning figures into friends:
1 - Give Them A Chance!
Begin to look carefully at figures instead of just ’switching off’ when they come into view.
Next time you get a receipt at the restaurant or for goods you’ve bought, take a good look at it. There may be some numbers that don’t mean anything but others will make sense.
So as a first step: don’t ignore numbers. They can give you a lot of useful information if you’ll just give yourself a chance to absorb what they are saying.
2 - Don’t Lose Them, Use Them!
Begin to use numbers more in your daily life.
- Start checking your change in the shop
- Check your bills too.
- Study your bank statement carefully
If you get confused, don’t worry, it happens to everyone. (Some bills seem to be designed to confuse!)
Just take in what you can and leave the rest.
3 - Take The Easy Route
See if you can spot the easy way to do everyday math sums.
For example, suppose you need to find: 7 8 3.
Instead of starting at the left and adding as you go, you may notice that the 7 and 3 make a nice round 10. Simply tag on the 8 and you get 18 altogether.
The above technique - called “looking for 10s” - is a useful trick when adding numbers.
Try some for yourself:
a) 8 6 2 6 4
b) 9 3 7 5 1
c) 13 6 7 14
4 - Notice Patterns
Another thing to practice is seeing patterns in numbers. This makes them easier to remember and to work with.
For example, 23434 contains a simple pattern.
So does 9639.
And 51015 is a ‘palindrome” - it’s the same backwards.
5 - Make Them ‘Real’
Numbers may contain memorable digits like dates.
For example, 217761.
If you look carefully, you’ll notice it contains the year of the signing of the American Declaration of Independence.
A number could contain:
- birthday numbers of yourself, family, or friends
- figures from a telephone number or dial code
- numbers of a house you have lived in
Or some other kind of digit combination that you can relate to.
Once you can relate numbers to the ‘real world’, you’re fast on the way to becoming familiar with them.
And when you get to know them, you and numbers can become the best of friends for life!
‘Fun With Figures’ shows you the quick and easy way to do numbers in your head! It’s perfect for math phobics aged 8 to 80. Check it out here: http://FunWithFigures.com
Technorati tags: numbers dont math just figures
48 Comments
The New Ways To Do The Business. Mba Or Cio
Posted on June 26th, 2008 by kouvin, under Businesses.
The old and standard business administration concepts included in any current MBA program are very important, but today the companies are very different.
This new situation strong demands a new MBA program including the General Control Theory, the control engineering, the new business technologies, the Management by Exception concept automated by computer systems, the Feedback Control System and several other subjects like Internet Marketing and Sales.
As we know the CIO is the abbreviation of “Chief Information Officer” and is a new professional, usually between the CEO and the other Directors including the IT Director. He don’t replace the IT Director, with the exception in small companies.
A CIO Chief Information Officer has entrepreneurial experience and at the same time technical experience in Information Technologies. The entrepreneur usually has only the entrepreneurial experience and the IT manager has only on technical matters. However business is more and more the information system and the information system is more and more the business.
The companies are more and more electronics, as for examples the ERP Enterprise Resources Planning, the CRM Customer Relationship Management, the Voice over IP VoIP, the sophisticated Call Centers, Business Intelligence BI, the Internet, the new Internet Marketing, etc. Therefore, to survive a modern business administrator must learn those new ways to do the business and how to manage those modern enterprises.
In other words, the current MBA will be substituted by a CIO in a very short period of time. And a recent report from the Association to Advance Collegiate Schools of Business, the primary accrediting body in North America lambasted its members for maintaining a curriculum that is out of touch with modern business practices. As a matter of fact, the current MBA it’s an 60-years old curriculum in the begin of this digital age.
Publishing Guidelines: You may publish my article in your newsletter, on your website or in your print publication provided you include the resource box at the end. Notification would be appreciated but is not required.
About the Author:
J.C.Melo is a 73-years old IT professional with 54 years of experience in computer science and technology entrepreneurship. He was the owner of the first minicomputer factory in South America and Consultant for the U.S. Government in several contracts. Now is the CEO of the organization http://mba-open-university.net and http://online-learning.distance-learning-mba-online-mba-program-executive-jobs.net .
Technorati tags: business information experience current very
12 Comments
Using The Power Of Client Testimonials To Grow Your Business
Posted on June 26th, 2008 by kouvin, under Businesses.
Client testimonials are one of the most powerful marketing tools coaches can use. Did you know that they can help you attract new clients, increase customer confidence and generate a positive “buzz” about you and your services? (Actually, those are just a few of their marketing uses.)
Human nature gives testimonials such power because we love discovering what one person thinks of another - even when it’s positive! It’s the same dynamic that makes gossip so hard to resist. As a professional coach, you want the positive “gossip” that testimonials provide because you can use that information to promote yourself, your services and products, to call attention to your strengths and to distinguish yourself from your competitors.
Testimonials also are powerful because they are first-person accounts: when a client makes a positive statement about you and backs it up with his or her name and contact information, it enhances your credibility.
In addition, written testimonials are fabulously flexible. They can be used powerfully on your website, in printed and electronic promotional materials, following the signature line of your emails and in many other ways and places. Once you have obtained testimonials from your clients, you will think of a hundred ways to use them!
Now that we have established the value of client testimonials, here are a few dos and don’ts to guide you as you obtain and use them to grow your business.
DO let your clients know the benefits to them of providing testimonials that will be used on your website(s), such as:
- increased exposure for their business, thanks to internet serendipity;
- increased website traffic and/or business for them, generated by a link from your website to theirs;
- enhanced standing among search engines, due to more internet exposure; and
- that genuinely warm feeling that comes from helping another “solopreneur”!
DO obtain your clients’ permission to use their full name and email address because it will give
their testimonials a great deal more credibility. (Let’s assume I have written a glowing
testimonial for someone whose services I use. Now compare the impact of these two testimonial
signatures: “A.S., Coach” or Alicia Smith, Business Coach and DISC Ninja;
Alicia@aliciasmith.com. The second is far more powerful.)
DON’T (ever) use fictional testimonials because they can destroy your credibility.
DO utilize honest (verbatim) testimonials that speak to what your potential clients will most want
to know about you, including (but not limited to!) why you are such a fantastic coach and why
you, your services and your products are so special.
DO store your client testimonials in a Word document or Excel database so that you can find
them easily. You may want to organize them by client name, service or product.
The next step is to obtain testimonials from your clients. Here are the basic steps and some questions to get you started.
Begin by sending your clients a friendly email stating that you are seeking a testimonial you can use in your marketing. Personalize your communication as much as possible. For example, your letter may begin, “Dear Jim: Last December, you participated in my teleclass, (name of class). I certainly hope you found the class to be helpful. Because I am revamping my marketing materials, I am writing to ask you a favor: I would deeply appreciate it if you would take a few minutes to answer the questions below.” (Be sure to work into your letter the benefits to these clients of providing testimonials that will be used on your website.)
You may want to ask your clients some or all of the following questions and to customize each email with the name of the product or service the client purchased. When a client has purchased more than one product or service, send a separate email request for each.
- What first attracted you to (name the teleclass, internet course, product or service the client purchased) and why did you decide to purchase it?
- What was the most beneficial tool, concept or idea that you gained from (the product or service)?
- How are you currently utilizing (the product or service in your business and/or life)?
- Has it saved you and your business time, money or energy? If so, in what way(s)?
- Why would you recommend (the product or service) to your associates, colleagues or clients?
- What would you like to say to someone who is considering purchasing (the product or service)?
You now have the basic information you need to obtain client testimonials that you can use to power up your business and Make Money Now! Here’s a very important final tip: once you begin to receive testimonials from your clients, be absolutely sure to enjoy the wonderful things they say about you!
Alicia Smith is an internationally-regarded Coach, Trainer and Author whose specialty is helping coaches Make Money Now. Over the last 3 years, she has taught over 10,000 coaches how to improve their business bottom lines. To learn more about how you can Make Money Now, visit http://www.AliciaSmith.com.
Technorati tags: testimonials clients client business product
11 Comments
Cross Cultural Training
Posted on June 25th, 2008 by kouvin, under Businesses.
As economic and political spaces between nations become smaller and international trade continues to increase, the movement of people between countries is becoming more fluid. With competition for talented global workers increasing, companies are becoming increasingly aware that creating a cross cultural environment in the workplace is critical for long-term success.
Cross cultural training is now becoming an integral part of staff training as managers and HR staff want to ensure that effective communication is developed between employees. By educating staff through cross cultural training courses, such as cross cultural team building and communication programs, companies and organizations are becoming more competitive in the global marketplace as cross cultural synergy in the workplace grows.
Cross cultural training is a fairly broad term that covers a variety of different training programs. Each training program will have its own focus and will address the certain needs of a particular client group.
Generally, cross cultural training can be divided into two forms, namely cross cultural awareness training and culture/country specific training.
Cross cultural awareness training has a number of applications. Its main objective is to introduce, analyse and constructively tackle the different manifestations of culture in the workplace. It essentially deals with interpersonal interaction. For example, cross cultural team building training will aim to raise team members awareness of each other culturally in order to foster mutual trust, respect and understanding, The result of which will be clearer lines of communication. Cross cultural management training aims to equip management staff with the knowledge and skills to effectively supervise a multi-cultural staff. Cross cultural awareness training results in a more convivial and understanding work environment.
Culture/country specific training programs are generally aimed at individuals or teams that regularly visit a foreign country or who frequently interact with overseas clients or colleagues. Such training looks at one specific culture/country and covers areas such as values, morals, ethics, business practices, etiquette, protocol or negotiation styles. The aim of such training is to better equip participants with the key skills that will help in building successful business relationships.
Cross cultural training aims to develop awareness between people where a common cultural framework does not exist. In the business world in particular this manifests in better interpersonal understanding leading to more effective communication which ultimately results in a more productive business environment.
M. Ridha is a consultant at Kwintessential http://www.kwintessential.co.uk/cross-cultural/training.html
Technorati tags: training cultural cross awareness between
10 Comments
Cash Flow Management
Posted on June 24th, 2008 by kouvin, under Businesses.
Why a Cash Flow Statement?
Many business owners believe their financial statements will give them all the information they need. Financial statements are an historical tool that shows you where your business has been. A Cash Flow is the fancy name for a working budget that tells you how much cash your business actually has. Working in sync with your balance sheet your cash flow should be an easy-to-read tool that allows you to monitor sales, costs, profitability, collections and cash. It allows you to plan for future cash needs for growth, while identifying operational issues requiring immediate action.
Successful cash flow planning does not require a degree in accounting. What you need is real-time understanding of where the cash is originating, where it is going, and how much is left over (just like you do at home). Businesses need to operate with a cash flow model that looks ahead one year, month by month, and is updated with actual results every week.
Create a Worksheet
The formula for successful cash flow management is deceptively simple. Money in. Money out. Money left over. If there isn’t any money left over, then you need to do something differently.
Start with Sales. Sales is work performed that is documented by cash register receipts, guest checks or invoices. Project the amount of sales you anticipate month-by-month starting with the current month. Sales should fluctuate when you consider the seasonality of your business. Break the sales into categories and be conservative.
Project your collections month by month. Collections are the money you put into the bank in the form of cash, checks or charge card vouchers. If Sales do not equal Collections, you either have accounts receivable or a cash control problem.
Review your expenses. Define your expenses into two major areas: Cost of Sales (expenses that fluctuate with sales such as product costs) and Overhead Expenses (expenses that do not fluctuate with sales). Define the cost percentages for your major sales categories. Forecast all other Overhead Expenses (rent, utilities, insurance, licenses, etc.). Project all expenses out in the month they will be paid.
Forecast your payroll. List your current and anticipated employees and categorize them as Cost of Sales labor or Overhead labor. Cost of Sales labor may be projected in part by a target labor cost percentage. Estimate payroll expense per employee (average hours worked, rate of pay) over the next twelve months.
Evaluate Your Profitability
With monthly sales and expenses projected, business profitability, feasibility and value can be determined. Total Sales minus Total Cost of Sales Expenses (including Cost of Sales payroll) minus Total Overhead Expenses (including Overhead payroll) equals Monthly Cash Reserve. This is also your profitability. Is there any money left?
What debt are you servicing? Evaluate this debt separately from your profitability. Debt takes many forms including notes, loans, credit cards, leases, and lines of credit. When businesses must restructure their debt in order to improve cash flow, lenders expect the business’s Balance Sheet to look a certain way in order to qualify for financing.
So, What’s Next?
Once this working budget is assembled, a break-even sales volume can be determined that generates enough profit to cover debt load and have no cash loss. Your cash flow objectives are now clarified and strategies can be implemented. Any issues that caused a cash flow problem will now be corrected.
With your Cash Flow mapped out, you have the beginning of control.
Cash Flow Planning brings financial stability to a business through pro-active budgeting, monitoring and adjustments. You will understand where you are today and what your options and priorities are. You will be able to forecast your cash needs and gain control of your business. With the use of a Cash Flow, your business will have more money and a road map for the future.
- Written by Monte Zwang of Steele Development Corporation, a consulting firm specializing in business development and financial strategies. You can reach Steele Development by calling 206.878.9666 or online at http://www.Steeledevelopment.com.
Technorati tags: cash sales flow business money
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Returns Issues In The Consumer Electronics Industry
Posted on June 24th, 2008 by kouvin, under Businesses.
It is estimated that returns cost the Consumer Electronics industry more than $10 billion annually, and although returns are unavoidable, it is essential that a means to capture the “true” reason for product returns be developed and implemented. Information obtained from the Consumer Electronics Association (CEA) indicates that over 60% of all returns reflect a reason code of “defective.”
This seems quite high in light of the great expense and technology used by manufacturers of electronics in today’s market place. But let us for a moment examine the current method of gathering return information from the end consumer. In most cases when a product is returned a clerk simply asks the reason for the return, the consumer wanting to facilitate a smooth return experience simply states the product “doesn’t work” the product is returned, credit is received, and both parties are happy (especially since the true cost of the return is bore by the manufacturer/distributor).
In other cases, warehouse wholesale stores that rely upon consumer memberships ask few if any questions, concerned that a bad returns experience will cause the consumer to cancel his membership. Even certain retailers advertise “no hassle” return policies, suggesting that products can be returned for any reason at any time. In these cases the return’s clerk either marks the reason for return as “defective” or leaves the return reason completely blank; thus forcing the manufacturer to test the product to determine (or in some cases guess) the real reason for the return.
It is interesting to note that the CEA has recognized a new trend in the timing of returns. An analysis comparing return patterns from the year 2000 to 2002 suggests that individuals are holding products longer before returning to the retailer, thus increasing the usage time of the good. Although the bulk of returns (44%) are taken to the retailer within one week of purchase, items held for more than one month before being returned increased from 13% to 21% from 2000 to 2002.
The “true” reason for the return may vary from buyer’s remorse to displeasure with the color to even confusion on how to operate the product. In an ideal world the manufacturer’s help line would be called if the product does not work as expected. But we, as powerful and busy consumers, want a product to work as expected, right out of the box, without the fuss and muss of calling a technical support line.
The science of gathering accurate returns information is still being developed, and from the aforementioned data it is quite clear that we do not have a clear picture as to why people return goods, and retailer’s aren’t all that helpful in the gathering of data. It is not necessarily the retailer’s fault; because essential questions related to the product return could be perceived by the consumer as a “bad” return experience and could cause the retailer to lose that consumer (and others that may be swayed by the disgruntled consumer). If positive data could be gathered from the return of the product it could be used to enhance the consumer’s product experience or to reduce returns.
It is a difficult issue with no clear answers, consumer’s want power and choice, manufacturers do not want returns, and retailers are caught in the middle. Some manufacturers have attempted to develop returns programs to reduce or eliminate product returns but these have had marginal success mostly dependent of the rate of return. The ability to gather information related to product returns can lead to a strong competitive advantage and a better consumer experience but in order for this to occur we need to take the first steps in gathering the essential data.
Technorati tags: return product returns consumer reason
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Escape The Pitfalls And Keep Your Organization Productive During The Holiday Season
Posted on June 23rd, 2008 by kouvin, under Businesses.
It’s that time of year again.
Shopping, parties and long lines everywhere. More vacations, more family commitments, and more stress. These are a few of the challenges we all face during the holiday season. The holidays are a wonderful time of the year, and we will enjoy them more as leaders when we learn how to help our organization revel both in the season and their results.
Following are some suggestions to keep the focus and results high as the bells ring louder and the shopping days disappear. Rather than avoiding the challenges or denying the distractions the season offers, ESCAPE the problems by applying the suggestions below.
Expect good results. As a leader, one of your responsibilities is to set clear expectations and goals for others. However successful you have been at communicating and gaining understanding on these expectations, the holidays require some additional expectation setting. Give people a sense of where they are on their annual goals, and encourage them to finish the year strong. As you set and reinforce these expectations, remember to give people the support and resources they need to succeed.
Share spirit. While some people have a bit of a cynical, stressed out, scrooge attitude towards the holidays, most find their spirits lifted and thoughtfulness is at an annual high. Encourage people to show their spirit and sense of goodwill when communicating with others inside the organization. Even more importantly, encourage those sales people, Customer Service professionals and others who communicate with Customers to use that holiday good cheer in their interactions. Customers will notice and everyone wins.
Celebrate! You probably have a holiday party at a restaurant or hotel, which is great. But consider doing an on-site workday event too. There are many options -”Secret Santa”, a white elephant gift exchange, or daily afternoon holiday snack break with different people bringing things each day are just three suggestions. A little time spent here can help bond teams and focus them on their work for the rest of the day. (Hint - let people who are interested in these kinds of events plan them - don’t delegate it to the unwilling or overworked because it won’t have the same results.)
Acknowledge the challenges and distractions. Let people know that you realize the holidays are a tough time of year to stay focused. Share your shopping and social calendar with them, so they understand that you feel the seasonal stress that they feel too. When people know you understand their situation, you gain credibility when talking about expectations and year end goals.
Present positive anticipation for the New Year. Give people something to look forward to. Get them excited about a target or project that will make a real difference early in the New Year. Giving people this forward focus will help the focus now, but will really help people past the doldrums that can come after January 1.
Engage outside your organization. Take the lead by organizing a group to lead a toy campaign, contribute to a food drive, or better yet, do something as a team in the community. Your group will feel proud of their efforts, pleased that their organization supported and encouraged the activity, and the team will improve their relationships which has a long term impact on team health and productivity.
These suggestions individually can help you navigate the holiday season more effectively. Taken together, however, they will help you ESCAPE the pitfalls and make December a valuable and productive close to the year and a jump start to the new one.
Kevin is Chief Potential Officer of The Kevin Eikenberry Group ( http://KevinEikenberry.com), a learning consulting company that helps Clients reach their potential through a variety of training, consulting and speaking services. Kevin publishes Unleash Your Potential, a free weekly ezine designed to provide ideas, tools, techniques and inspiration to enhance your professional skills. Go to http://www.kevineikenberry.com/uypw/index.asp to learn more and subscribe.
Technorati tags: people year help holiday time
