Management accounting provides clear information to the executive to allow more relevant decision-making. It is an ongoing up-to-date accounting process that has the directors always aware of the objectives they have set, rather than have them witnessing a lingering past situation.
It is a pretty sure bet that one hasn’t entered the business world because he is fond of accounting registries, ratio calculation or negotiating with bankers. Financial management helps evaluate needs in funding sources, in setting funding priorities, to allow a safe management of cash flow and loans, while considering equipment, inventory, and client-oriented goods and services imperatives.
HUMAN RESOURCES MANAGEMENT
It is often summed up, within SMEs, as hiring low-salary employees to preserve low costs and as holding team meetings once in a while to restore order. With such a narrowed-down perception, some entrepreneurs make wrong personnel choices and underuse their effective. Economic issues are ever-changing, and entrepreneurs sometimes don’t know how to maximize the younger blood getting started in the industry.
THE ART OF NEGOTIATING
Many entrepreneurs see negotiating as a burden and are aware of it when they are pushed to the brink of negotiating with employees or the financial institutions. However, everyone must negotiate daily, be it with the kids to so they complete their homework or with the spouse for the next vacation. It then becomes crucial to question oneself as to the negotiation process and to the assets that will have you evolve into the best negotiator you can be, able to influence and convince more efficiently.
MARKETING AS A MANAGEMENT TOOL
For many entrepreneurs, marketing ends up being a promotional booklet and a few commercials, which is a watered-down vision shielding the true essence of marketing: manage all the channels through which the potential client has access to your business to make sure he comes to know you, he’s interested in doing business with you, he has a pleasant experience, he’s satisfied with the product and the service provided and he’s sold on coming back for future transactions. Marketing is thus much more than publicity: it allows the business to showcase its very nature and its originality, to define its accessibility, and to share its vision.
We learn to manage production, human and financial resources according to sales, but it is though we didn’t have any control of this variable. A considerable and unexpected drop in sales can have a significant effect: you may need to store and pay up an excess in inventory. An unexpected increase in sales an be just as devastating: you may be unable to address the demand, at which point your clients turn to your competitors, which might be irreversible. There are two sales management modes: proactive and reactive.
SALES FORCE MANAGEMENT
Sales force is often neglected and overlooked by entrepreneurs, who feel they don’t have the time nor the need. However, in the meantime, customers leave the premises empty-handed, dissatisfied with the service, often without even having been approached. The lack in training and the constant turnover in sales force translates into salespersons who don’t have the time to gain the experience that would have them perceived as true professionals.
PUBLICITY AND PROMOTION
Sooner or later, entrepreneurs must take on publicity and promotion as a defining asset, before time is up and revenues are less and less generated, instead of investing in inefficient commercials or complaining while they are waiting for potential clients to notice them. It is fundamental to realize the infinite potential lying behind publicity and promotion; without an adequate commercial channel, it is almost unthinkable to guarantee any success: the clientele that is still only must be reached.
Whatever the distribution channel, be it within the premises or on a website, merchandising must maximize sales and increase profits. Thousands of products are available on the market, and each of them must fully take its place. The science of merchandising is all about strategic display based on two golden rules: consumers making their way through the surface and consumers vantage point.
It is all about setting up the steps leading up to concept and product availability and profitability. Commercializing consists in establishing what the consumers want and providing it to them with profit. Commercializing must bring together, evaluate, and orderly spread market information. It must ensure opportunities, distribution channels, inputs supply, transportation, storage, credit, and operations.
KICKSTARTING A BUSINESS
There are many steps to follow before even thinking of kickstarting one’s own business. Many questions have to be addressed, the life plan must be drawn up, the demand must be measured, the financing, the human resources, the networking and the available investment as far as time must be established before even outlining the business plan. One must then determine if he is to become an entrepreneur.
SOCIAL MEDIA AND BUSINESS
Businesses that have been operating for a while ridden the technological wave, from faxes to computers. Now, the Internet and social mediarule the world by having information available with the tip of the finger. We must then determine the more efficient way of using social media, according to the available human resources, in the perspective of a correlative, thus potentially exponential growth. Entrepreneurship requires that evolution serves it well.
LEGAL MEASURES AND REGULATIONS
When an entrepreneur is considering setting up a business, many options flash before his eyes. Whatever the structure or the legal entity and power attorney he chooses, he will have to comply with regulations at every level. He must know the laws regulating the rights and the protection of human resources, the consumer’s protection, the licences and permits of operation, the insurance and his responsibilities as employer and entrepreneur, among others. The entrepreneur must be supported by competent, honest, and direct key players who will accurately guide him through the decision-making process. The straightest path is the surest way to success.
From the entrepreneur’s perspective, there are numerous publicity and promotion avenues. Less and less consumers actually enter the premises to buy what they want; they order online. Consumers shop cleverly and knowledgeably, surfing the Web and gathering information. A new analysis axis is now trending: accessibility, frequency of occurrence, rank in appearance, user-friendliness, and order option. If the website is not competitive, the business risks losing its relevance.
It is the art of managing the available space, human resources, and equipment, to maximize products’ and services’ efficiency, while minimizing the cost of every square inch engaged. In order to choose between renting and building an infrastructure, the needs must be well defined and the nature of the operations must be thoroughly understood. Many figures must be considered to ensure an efficient management: growth rate, involved and complying technology, human resources, budget, vision, short-term and long-term objectives, supply and demand, location, laws, and regulations, most notably, depending on the industry or the sector.
Sooner or later, some entrepreneurs, given the global market, must start exporting, mainly due to the crumbling of the local market. For some, exporting involves additional production; they are probably trailing the competition, which may have gotten into exporting, thus ensuring an increased production volume and a consequent reduction in production cost, helping them, in return, becoming more productive and gaining their share on the international stage. Surely, at this point, questions arise as to the exporting mode, the steps to follow, the necessary resources, and the market certainty.
CONTROL SYSTEMS AND PROFIT
Every entrepreneur aims at maximizing his profits, and, oftentimes, the solution lies within his business. Establishing adequate control systems maximizes return on investment. It is important to undertake the variables in order to increase the profits. Therefore, quality control must be followed closely so that return expenses and transportation fees, checks sent out to creditors, payroll, equipment maintenance, work shifts, purchases and inventory are accurately monitored. Adequate control systems in place helps cutting down on losses and risks of abuse and fraud. Furthermore, good control systems help in keeping production and service cost at a low level, which allows for competitive prices, increase in sales, lower cost per item, and more profit.
It is probably the key component to a business’s life and growth, especially at the present crossroads marked by telecommunications and high-speed Internet access. Consumers want to be served swiftly by knowledgeable and trustworthy senior consultants. Baby Boomers represent a melting pot with purchasing power, an education degree above the previous generation’s, well informed, willing to buy and eager for a personal service come the final transaction. It is of the utmost importance that customer service be first class for high-rate retention and loyalty and for breakthrough word-to-mouth marketing. A satisfied client will bring in seven potential clients, while an unsatisfied one will have 121 potential clients vanish. All service-oriented staff members must benefit from the same training and mantra: credibility and integrity stem from cohesiveness.
PROFITABLE BUSINESS NETWORKING
Nowadays, the entrepreneur faces globalization within which every holder has become a specialist. The innovative entrepreneur must then strategically surround himself, reach agreements and partnerships and develop the network that will have him maximize his success. Relevant networks have the entrepreneur benefit from economies of scale, reap the harvest of new qualifications, access new resources and abilities, diversify his operations, develop his management knowledge toward expertise, reduce delays related to change, take new markets by charge, and adapt to technological evolution. The entrepreneur must determine, based on his vision and his objectives, his networks’ added value, the networks best-suited for his needs according to the development stage at which his business is, and the essential requirements of his networking. He thus must determine the process and the tools best-suited for facing the challenges and situations that lie beneath the implementation of a business network.
OCCUPATIONAL HELATH & SAFETY
It is a component that is often neglected within the SMEs. Faced with the high costs of the program implementation, the entrepreneur believes his business has too few employees to comply with the Law, based on the lack of time and human resources or because, quite simply, he chooses to ignore the Law. Occupational Health & Safety are under Federal Law C-317, which is in effect to protect employees within the workplace. Every business, without exception, must comply with it: industrial, commercial, services, and community-oriented. The employer must provide policies and procedures guides and manuals for equipment use, CSA approved equipment, proper work space, and ergonomic conditions. The employer must work hand in hand with th human resources to ensure the physical and mental protection needed for his employees. l’espace de travail conforme, et les conditions ergonomiques. For example, responsibility and accountability must be determined, in compliance with Law C-317, if an entrepreneur hires a contractor. The Occupational Health & Safety Law gives the workers accurately defined rights that need to be identified. The Occupational Health & Safety Inspector is the most powerful individual in the case of an infraction to Law C-317; this prerogative has to be known.
Individual working for and within the same business, who receive the same training, and who work under the same conditions don’t necessarily offer the same performance. Nowadays, the term salesperson is seldom used, as opposed to SALES CONSULTANT. Many issues are factored in to explain the difference between a top-end and a low-end consultant. Some of those issues are personality-related, such as PASSION, FLAIR, LOVE for the solution, MAXIMIZATION of applied skills and knowledge, WILL to go above, EAGERNESS to succeed, WILLINGNESS to invest the time needed, ACCOUNTABILITY toward the clients, and ENTHUSIASM toward the task at hand. Other issues have more to do with the learning process tied to the task and duty, such as prices, brands and lines, delivery deadlines, and order forms and mode, most notably. Sales techniques help maximizing the attributes and the abilities the consultant already possesses, mostly easing the interaction between the consultant and the client: bad reception, composure, evaluation of issues, guidance, instruction, rejection management, and expression of solutions.
Once the entrepreneur has determined his commercial supply and the opportunities within the market, he must decide how he will manage his clientele: retention or renewal. When a client is interacting with the business and is able to evaluate his experience, it represents a point of contact, thus one more step toward the truth. If the level of satisfaction remains or increases, the relationship will go on; on the other hand, if the satisfaction dwindles, the client’s end of the relationship is reconsidered. Therefore, the various retention and evaluation tools are crucial, not only to keep the clientele, but to increase it, to evaluate its satisfaction and to create an energized rolling-ball effect, allowing the business to grow constantly.
When the business is on the right track, generating revenue, its human resources well in place, its treasury well managed and its expansion a strong possibility, it is ready for a thorough analysis of the means to get rolling, as to acquisitions, moves, set up, products, partnerships, export, and fusion. The growth axes of a solidly anchored business are made up of all its peripheral issues.
ART OF COMMUNICATING
Communication between individuals within a business, be it among the executives, between the executives and the employees or among the employees, is a key to success. Individuals don’t necessarily state what they think, nor do they necessarily adapt to the context or the target. The top two reasons to explain the fact that an employee does not do his work according to the required process are that his superior has not provided the right training, instructions or tools and that the employee simply does not have the required abilities or skill set. The latter is a human resources flaw. It is thus imperative to have proven communication at every level to make sure the right people are hired for the right tasks at hand, thus to avoid wasted time, training, and revenue and a glaring lack of efficiency.
ACCOUNTING: UNDENIABLE CORNERSTONE
Accounting sure assembles tasks that an entrepreneur hates to perform; it is nonetheless the business’s pulse. Indeed, a clear and updated accounting allows the entrepreneur to be aware at all times of his business’s financial state, at any given date. Accounting is thus made up of the debit and credit notions, the balance sheet, the income statement, and the cash flow statement. All activity transactions, sales, expenses, purchases, returns on purchases, depreciations, equipment and real estate acquisitions, payments, and banking reconciliations, most notably, are registered, which allows to track any of them, at any given date. It allows the growth or the drop evaluation, enabling the retained earnings comparison from one year to another. It also allows accurate and right information so that an accounting firm may go ahead with the audit and complete the corporate income tax form that must be sent out to the Revenue Agency.
DECODING FINANCIAL STATEMENTS
The financial statements are the result of a proper accounting. Now is the time to study them and interpret what they are revealing. The financial statements are always presented so that the reader can compare between two years. The data is thus used in comparative ratios to allow the entrepreneur to find out how the year is closing, as well as the flow from the previous year. These very financial statements are sent out to the financial partners so that they are able to evaluate the business’s growth and solvency. The statements also show the tax assessment and the figures from which the entrepreneur will be managing, thus the importance of keeping actual, real, and accurate figures to determine the business’s exact value.
ESTABLISHING COSTS AND SALES PRICES ACCORDING TO COST PRICES
The only appropriate way of setting the actual cost is undoubtedly to apply a COST PRICE model adapted to the needs. The cost price is determined by considering all the set and variable fees involved in the production and the delivery. Set fees include all the expenses a business must pay without even having produced a single item, such as infrastructure, power, heating, municipal taxes, and administrative staff salary. Variable fees, on the other hand, include expenses that are tied to the production process, such as raw material, production process employees, supervisors, power for production equipment, and maintenance. Cost price is set on a common denominator, based on the business’s activity. The sale price is then set depending on an added value, as a profit rate on charged expenses.
BUDGET AS AN ESSENTIAL MANAGEMENT TOOL
Everyone must set a budget according to one’s revenues and expenses to achieve a balanced financial life; a business is operated following the same equation, whatever the size and the volume. When we allude to business budgetization, we imply a global budget that can be broken down in sub-budgets. Every budget used within a business is a management tool that allows to closely follow the expenses and to measure, at all times, the distance from the objectives initially set in order to reach them as accurately as possible on the net profit’s front. A fiscal year is indeed marked by comparisons between projections and actual budget. A healthy business management is achieved starting with balanced and realistic budgets that allow credible objectives to be reached, whatever the term range.
An entrepreneur is a visionary who recognizes opportunities and who knows how to make the most of them. An entrepreneur may take on daily business opportunities throughout hos network, his new resources, social media, and within his organization An opportunity must be well analyzed and evaluated, according to available expertise, human resources, financial resources, infrastructures, and partners, while considering every possible restraint so that no already beneficial activity is jeopardized. A great entrepreneur knows when to seize an opportunity and when to let it go by.
TO EACH HIS ROLE, TO EACH HIS RESPONSIBILITIES
An entrepreneur must know how to surround himself well and the key individuals who will share his vision and his passion toward the growth of the business, according to the objectives upon which they have agreed and toward a prosperity to which each may aspire. In order to reach the goals that have been set, everyone must fulfill a clear and well-understood role. The business chart is crucial for everyone to know his situation and the relations expected of him, always with accountability. Threrefore, the definition, the distinctive characteristics, the relations and the compliance with the previously stated make up the proper basis for the good management of all of a business’s assets.
The entrepreneur who wishes to retire one day must plan a way out as far as a potential buyer, be it a family member, an executive officer to ease in the transition, a financing option with first right to repossess or the liquidity of the assets. It is imperative to draw up a succession plan before making growth-oriented investments if the entrepreneur is not willing to finance a potential buyer.
There is no training taking place this month. However, please consult our site regularly, since many trainings will be added throughout the year.