‘Business Management’ Category

Money Management Tips

The issue of managing monies is very essential. Whether it is an individual or a corporate entity, money management is very has a role to play in p...

 

The issue of managing monies is very essential. Whether it is an individual or a corporate entity, money management is very has a role to play in personal or corporate growth. This writing will be more specific to a corporate entity, but there is no doubt that it will still be suitable for an individual as well. Money is the heart that keeps a business running. In order to make sure that your firm is still in business and moving in the direction of the goals of the establishment, you must examine your current practices of money management against the tips that will be provided below.

 

Tips for money management

  1. Create a budget for your cash flow. It is a proactive map or design which will enable you to effectively take care of your expenses and revenues. The cash flow budget is recommended to incorporate probable changes in your operating environment cum growth plans for your business as well.
  2. Be sensitive to some budget items. Some items which are capable of making a significant impact on the cash flow budget must be well considered. Such items may be overhead, price etc.
  3. It is germane to manage the credits you give to customers. It is recommended that you establish very important credit policies. The credit policies should make room for clients to pay as quickly as possible. Late charges and interest payment may become an integral part of revenue for your business as may be incorporated into the credit policies.
  4. Ensure that your payables are up-to-date as and when due. It is necessary to review your account payables. It must be well up-to-date. This will help you to know how your credit obligations are keeping up well.
  5. Cut your expenditures. One of the cardinal points of business growth is to increase profitability. This can be achieved in various ways – one of which is to reduce your expenses. As you reduce your expenses, you must ensure that the quality is not compromised. The expenses reduction should not be done at the expense of the quality standard or should keep in mind the quality standard of the firm if any. When the business needs more hands, you may need to hire contract staffs or part-time staffs instead of permanent staffs. In the same vein, a proper regular audit may show that some incompetence staffs may go on redundancy.
  6. Reinvest into your business the surplus cash flows. There must be a certain amount that is set aside for emergencies. This can be easily detected when you properly review the cash flow history. The surplus will enable the business to be expanded and growth will be experienced as well.  
  7. Effectively make use of your credit facility. Many a time, a credit facility is necessary to explore business opportunities. It is good for a long term business operations. The credit facility can be used to take care of unforeseen business contingencies. If it is not well used, it has the capability of folding up or collapsing the business.

Business Development Strategy: The 4th Dimension Approach

 

It is not easy to turn a small business into a mega one. Research and statistics have shown that very few of so many small scale businesses translate into a mega scale business. However, some fizzle out while others remain where they are almost forever. Staying small does not in any way guarantee any success in business. It is sure that people do business to make a profit whether it is an entrepreneur or a partnership business. Anyone who desires to grow the business is encouraged to spice the business with the following strategies.

 

  1. Quality products and services: no matter what the price of your products may be though, considering your competitors, you have to ensure that quality is of the essence in the production and delivery of your products and services. Quality must not be questionable. You may have to hire the service of a quality personnel to assist in fulfilling this goal.
  2. Penetrating the market: you must ensure that you penetrate the market. Your products must be readily available in the market. It should not be scarce.
  3. Developing the market: it must be ensured that there is market extension. Don’t be contented in selling your products and services in only one location. Seek to sell the products and services in several other places. Do not stop doing this. The more the market gets developed, the more it gets larger, the more products and services you offer to your customers and the more profits you make. That’s it!
  4. Using current technology: one-on-one with customers are not enough. Information and communication technology has made introduced e-commerce. You can now market and sell your products and services over the internet. You can develop an application that enables customers to buy using their mobile phones, iPad, smart phones and so on. This is the world of technology. Also take note to make advantage of any new technology as the case may be.
  5. Developing your products and services: business owners must seek to develop products and services rendered to the old and new customers. New products can be developed to take care of the new demands of the customers as taste and things may change with time. The old products may be repackaged or rebranded for a better presentation to the customers.  Doing this will keep your old customers and usher in new ones as well.
  6. Marketing: any products and services will not market itself. You have to take up the responsibility of informing or making the public to be aware that a new product is about to or already in the market. Ensure that the target audience is contacted and that they understood what the products and services have to offer them. It must be strategic.

The above strategies may be taken one after the other. It is tested and proven that these strategies will definitely move your business to a higher level, as in, a mega scale business. See you at the top!

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