Do Business Well

No manager can make an employee productive. Managers are catalysts. They can speed up the reaction between the talent of the employee and the needs of the customer/company. They can help the employee find his path of least resistance toward his goals. They can help the employee plan his career. But they cannot do any of these without a major effort from the employee. In the world according to great managers, the employee is the star. The manager is the agent. And, as in the world of performing arts, the agent expects a great deal from his stars. Continue Reading »

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Here’s what to keep in mind when preparing the visual part of your presentation:

1. Everyone in the group should be able to see and read the visuals easily. Think about the size of the group. The number of people will determine the technology you should use.
2. You want to be able to keep a tight focus on what is presented when. You don’t want to display too much information at any one time. Keep to three or four main ideas on each sheet. You don’t want your audience to get confused or overloaded.

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Personal needs at work

• Do you prefer to work in a small business, a large organisation, or on your own?
• Do you enjoy initiating new developments and seeing them fulfilled in your work?
• How important are workplace friendships? Do you rely upon these daily contacts to provide interest and stimulation to your work day?
• Are you competitive? Do you like pushing yourself and comparing your achievements with others?
• Are you a creative person who needs to express yourself frequently in your work?
• Do you see yourself as a leader? Do you enjoy exercising control over your situation at work and delegating responsibilities to others?
• What sorts of rewards are important to you? High salary; status in the job title; fringe benefits (car, expenses); long-term security etc.
• How willing are you to take risks, to try even though you know there is a considerable chance of failure?
• Do you prefer to work: inside or outside; with people, ideas, or equipment?

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20. Allocate cash received to the relevant sales ledger account

Some companies have suffered as a result of incoming cheques and cash being incorrectly allocated to customer accounts, thus enabling the person involved to redirect cash easily. This practice can go undetected for years unless steps are taken to check on it.

21. Check payroll calculations

Many companies operate bonus schemes which can be manipulated. Payment by results often reduces unit cost but it is essential that the results are measured accurately. Incorrect recording of batch quantities can result in higher wages and a higher unit cost. Continue Reading »

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Poor Accounting Controls

Accounts receivable. The A/R ledger has to be reconciled with the sales journal and the cash receipts journal. If not, it /Ispossible to lose an invoice, have the customer never pay, and never realize it. It’s also a good idea to add up the totals of your numerical invoice file and compare the results with your sales journal.

Accounts payable. Make certain that your A/P ledger agrees with your purchase journal and your disbursement journal. If you don’t do this exercise, you could double-pay an invoice, or lose an invoice and not pay it. The next time you need product from the supplier you will be past due on the account. This may result in your having to pay the old bill (which you weren’t expecting) and pay for the next order COD because you lost your credit standing with this supplier. Continue Reading »

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Your first thought might be that “why businesses fail” would just be the flip side of “why businesses succeed.” While there are some similarities, there are also some significant differences.

Ingredients to Business Failure

1. Inadequate capital
2. Product or service not needed
3. Underpricing
4. Excessive overhead
5. Insufficient time commitment from owner
6. Bad luck and/or timing
7. Poor understanding of business
8. Problem location
9. Poor accounting controls
10. Internal theft

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I owned and operated a wholesale company with approximately one thousand retailers as my customers. I was completely computerized and sent statements to my customers every month in addition to their invoices.

We offered a 3 percent cash discount for payments received within ten days of invoice date. We charged 1.5 percent per month interest on accounts that were not paid within the standard thirty- day terms. The U.S. economy had enjoyed two very prosperous years. For all of these reasons, the company was collecting its accounts in an average of thirty days.

In addition, we had only needed to write off .5 percent of our total sales because of the bankruptcies or liquidations of our customers. This was excellent, given the number and quality of our customers. Continue Reading »

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How do you find reps? Call the buyers you wish to sell. Tell them you’re planning to introduce a new line into their area, and you wonder whom they might recommend as a rep. I have never had any problem getting one or more suggestions from every call.

After you’ve amassed a list of potential candidates, call each one and do a brief telephone interview. Give him some background on your company and product to see if he’s interested. Determine if he has any conflicting lines (it’s usually considered a conflict of interest for a rep to carry the same items from two factories). Continue Reading »

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Manufacturers, wholesalers, business-to-business service providers, and job shops can all benefit from the use of outside sales representatives. Some companies who deal with the public have the same opportunity, such as travel agents, mortgage lenders, and apartment owners.

What is an independent sales rep?

1. The term “independent representative” sounds exactly like what it is. This person works for himself. He or his company, generally referred to as a rep firm, will not be on your payroll, but will earn their money from three sources of services they may provide: Continue Reading »

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Manger. An individual who directs and/or controls the activities of other individuals or of systems. Examples of systems would include bookkeeping, office, procurement, production, service, operations, and finance.

In the survival stage of your business you will undoubtedly hire some managers. If after a few years you have between five and ten people on the payroll services, it is likely that someone will be functioning as an assistant. The title of this assistant may be vice president, executive secretary, or office manager. Call him what you will, this person is the one who takes over when you’re gone, and who oversees that portion of the business that you don’t. Continue Reading »

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