Managing Finances: Top Tips For Small Business Owners

When you own a small business and handle most of its day-to-day operations yourself, it’s understandable how the “desk job” aspects of it can be set aside in favour of the ones that need immediate attention. For instance, you may put off checking your cash balance because there are potential clients asking about a product or service, or the inventory is running low and you have to call your supplier for fresh stock.

For many entrepreneurs, managing finances is something that has to be done to keep their business running, but it’s not exactly on the top of their to-do list. Being able to manage business finances well will actually help you achieve your business goals. For one, you can identify areas where you can cut costs and increase efficiency. You can also be more in tune to what’s really happening in your business and get insights about the direction it’s heading.

Small business owners looking to boost their profits in the near future will do well to get started on managing their money now. Any guide to financial management will tell you that you need to be completely informed and have a clear understanding of the financial process before getting into any small business venture.

To help you make financial management a tool to succeed, here are some top pointers to get you started.

Know your cash flow.

The basic rule of cash flow is simple: if you have cash, you’re in business; if you run out of cash, it’s time to close shop. Put simply, no cash means no business. Before you dip your hand into moving things about in your budget or increasing the price of your products or services, you should know how money moves in your business–where does it come from and where does it end up?

Cash flow is the movement of money. If you know how money moves through your business, you’ll be able to pinpoint any areas where cash flow crisis may occur. Being able to understand the flow of money will also enable you to come up with cash flow projections that can be used to inform your business decisions.

One of the most important things about business finance is cash balance–how much do you have at the end of the day? Make sure to determine your cash balance and keep this figure updated. Avoid making business decisions based on inaccurate data (such as a cash balance from the previous year!). To help you check the numbers, it would be wise to hire a good accountant early on so you can get things right from the get-go.

Don’t mix business with personal.

Mixing business money with personal finances is a no-no. While this may initially be the case for many small business owners and startups, the sooner you can separate these two, the better. Not only will it give you an easier time when filing your taxes but it will also make managing business finances easier, and allow you to subsequently grow your business. One of the best ways to keep business finances separate from your personal funds is by keeping separate checking accounts. You should have a business checking account and a business credit card dedicated to your venture. This way, you can have a clear understanding of your finances by simply reviewing your bank statements.

Another great way to separate your personal and business finances is by using a record-keeping software that can keep track of both your personal and business accounts and help you avoid mixing one with the other. Using an accounting software can provide a valuable insight into your business as it helps simplify data entry and speeds up business processes.

Monitor performance by numbers.

To be able to manage your business finances well, you need to get the facts straight. Make it a habit to keep records such as receipts, bank statements, sales reports, and key performance indicators that enable you to track and monitor your money.

Data can then be fed into business analysis software, which can help you get a clearer grasp of how your business is doing financially. You don’t have to be a computer expert, either. There are many kinds of business analysis software, including mobile apps, that are easy to install and use so that you can keep an eye on your business wherever you may be.

Monitoring and analyzing business performance in this manner will help you make data-driven financial decisions. Having your business metrics on hand is like looking at a car dashboard and seeing the gauges and other indicators showing how a vehicle is doing. For businesses, these gauges include data on return on investment, break-even sales, and stock turnovers, among other performance indicators. And as on dashboards, these metrics will alert you when something seems to be off so you can focus your attention to it. Analyzing your business’ financial health should involve a thorough evaluation of how much debt your business has accumulated as well as a review of your financial ratios, which provides a clear picture of your business’ assets and liabilities.

Keep costs low.

There’s almost always something you can do to reduce operational costs and make your finances more manageable. Can you cut costs and still deliver a good performance? Of course! You can even streamline your operations, increase efficiency and productivity, and make more money when you do.

Take a look at your business operations and see where you can save time and money. In many case, it’s all about making smart choices on where you allocate your small business funds. For example, you can–and should–take advantage of the internet and use email, web messengers, and virtual phone lines to communicate. This will reduce the amount you spend on office paper, printer ink, and monthly telco fees. In reducing business cost, you can also take advantage of Internet marketing which can provide a fast-paced and low-cost marketing.

Creating a business budget is another way to reduce business costs. Sticking to a budget helps you make sound financial decisions backed with a clear picture of your monthly business expenses. In addition, you can make notes using cash flow information and your business metrics to identify areas where you can save. You can do your marketing online for example, or shift to e-newsletters instead of printed ones. Sticking to a budget goes far beyond financial numbers: it is an exercise of financial control within your small business.

There are plenty of other ways to cut business costs and improve your finances–be creative!

How are you managing your business finances? Any tips you’d like to share? Let us know!

Posturing For A Better You

Okay, Pop Quiz. With a show of hands, how many of you know what your posture is saying about you? Just pause a moment and consider the question. If your posture could speak, what would it say? Some examples could be the following:

“I’m tired, I’m cranky and I just don’t feel good.”

“My life is horrible. I need a change.”

“I can’t wait to get my day started! Where’s my orange juice?”

If any of this sound like you, believe it or not, your posture can be connected very much with how you feel. When we say “how you feel” we mean not just physically. Your mental wellbeing, right down to how you perceive yourself, has a connection to your posture.

So why is posture such an important part of your life?

Well, it goes like this. If your long-term goal is a long and healthy life with a virtually pain-free body, good posture is part of that equation. However, good posture just doesn’t automatically happen. For many of us who work in cubicles hunched over a computer keyboard for several hours a day, we need to actually ‘train’ our bodies to respond to the need for good posture.

As it turns out, there are several nifty posture ‘training’ devices available in the marketplace just for this purpose. Sure, you probably just had a visual pop into your head of something resembling a torture device. Well, that’s far from the truth. The posture correcting tools that are being manufactured today can easily be worn under regular clothing making them undetectable.

The Great Posture Road Map

Imagine your body as a giant road map. It will feature some incredible places worth a visit or two but in order to get to them, you need to be able to move smoothly through obstacles. Think road construction or accidents as the scenes where posture needs improvement for safe passage. On your roadmap, there will be places where good posture will open up many passages.

So, here are the landmarks of your roadmap that will lead to good posture:

1 – Chin

Hold your chin up. Do not drop it down.

2 – Chest

Lift your chest up.

3 – Shoulders

Pull your shoulders back and down.

4 – Stomach

Hold your stomach in.

5 – Tailbone

Slightly tuck your tailbone in.

6 – Knees

Keep your knees slightly bent.

7 – Feet

Have your feet hip-width apart.

So, how does that feel? Follow this roadmap daily whenever you are walking, working out, sitting at your computer, daydreaming about your younger self and whenever else you need to straighten out.

The Mechanics Of Good Posture

You knew there had to be more to this. The science behind good posture is quite simple to understand. It is all related to the way your spine is held inside your body. When you follow the steps to the Good Posture Road Map above you are putting everything you have into supporting the proper alignment of your spine. When your spine is aligned, running straight up and down, without any extra pressure being put on it, you will have good posture.

There’s, Even More, Benefits To Good Posture

Yay! You’ve got the information you need to be able to improve your posture at a moment’s notice. But, why would you? There has to be more than just keeping your spine aligned. Well, there is. When you are exercising good posture practices something really cool happens inside your ribcage. You lungs have room to expand. What this means is that you will be able to get more oxygen into them with proper posture. The key behind more oxygen is better health. Take a deep breath right now. See how awesome that feels? Full lungs rock. Don’t forget that.

The Visual Benefits To Good Posture

We’re not quite done yet with this subject. When you stand or sit up straight, it says something about you. It is an important part of that unspoken language we can body language. Think about the people you’ve come in contact with already today. Were they displaying good or bad posture? Which ones seemed happier than the others? What was your initial reaction to those with good or poor posture? Have you ever noticed this before?

People with bad posture habits tend to slouch and appear bent over. Typically they do not make eye contact and are difficult to connect with. Sometimes the posture roadmap gets tossed out when our mental state is far from perfect. Slouching is a sign of sadness, depression, low self-esteem, tiredness and a generally bad attitude or self-image. Many of these things can be relieved with a visit to the Good Posture Road Map. In other words, don’t veer off the map!

What Others See

Even if you may not be the most confident person in your department, neighborhood or class, no one will notice that if you have good posture. That’s because good posture sends out signals to others about you. A firm handshake, eye contact, and a straight spine speak volumes about the way you see yourself – even if you don’t see that in yourself at all. Need to snag a promotion or leave a good impression with someone? Good posture is your secret weapon. Why do you think superheroes strike a good posture pose all the time? It’s their signature. It’s their sign of confidence.

Is It Too Late To Start Improving Your Posture?

The right time to work on improving your posture is now. Regardless of your age and health condition. If you can stand up straight during a normal day, you are ready to embark on your first trip down the Good Posture Road Map. Follow it daily and at one point it will just become automatic and you won’t even know you are doing it. But you will notice you will feel better both inside and out. Good posture can then become your very own secret weapon.

Benefit of the Human Resource Development

Nowadays in emerging market of business each and, every organization is looking forward to having a strong employee engagement in the organization. Because, when proper training and learning is provided to the employees of any company, the performance of the employees and the output also gives wondrous results. Human resource development is the best way to achieve employee engagement. This also helps the organization in giving rewards to the worker for the motivation, hard work and dedication he has provided to the company.

  • Another way to recognize the performance of the employee is through the computer based assessment software for performance appraisal calculation that helps in knowing the efficiency of the worker to reward him accordingly.
  • If the company doesn’t pay attention to the performance of the employee and the areas where they lack, it would not be able to achieve desired results also. Hence, it is necessary to keep a constant watch on the skills of the employees along with their dedication and motivation so that necessary solutions and training programs can be set for their improvement.
  • Performance management has become quite crucial these days, and hence, it is important for the companies to look after the performance of the employees. The HR managers need to keep a watch on the employee’s performance to provide them with satisfying rewards, as this would to the production of the company. Hence, providing them with bonus or rewards is a way to get more out of the employees.
  • It has been proven through various researches that with the help of performance appraisals, the companies have grown and developed to a great extent. However, the appraisal has also led to some strict regulations on the company for the employees, but it has also been fruitful for the progress of the company.

Hence, the HR management and development not only includes the building of the skills of the employees but also helps in its development, education and learning too. When the company invests in the training of any employees through training programs, development, and learning, it works in the progress of the company, as it develops successful skills in the employee to increase production. One of the key areas for development of employees is team learning.

The team consists of two or more people working to achieve the same goal under the same circumstances. A team usually report to one common person can be a supervisor. Successful completion of the task is depending upon performance level and the contribution of team members. Through team, development organization can get better results as so many people forced on the shared common goal. It can play a vital role in upgrading the trainer’s learning process.

The team building has helped the companies in developing the proficiency for so many years and also in manifesting the technical skills of the employees. Hence, a systematic training program for implementing team building, computer-based learning for team members, etc. can help any of the companies to progress efficiently.

Achieve Business Goals With The Right Innovation Platform

Innovation and creativity is key to the success of an entrepreneur’s business establishment in today’s marketplace.New and ingenious products or services that such a proprietor introduces for sale to the public in such an environment is the result of a system that encourages creativity among the workforce.

This enables such a businessperson to stay one-step ahead of his/her competitors.Increasing productivity through innovation is critical but it is usually difficult to maintain in a reliable way in the long-run. This is the reason why it is necessary to formulate and execute have an effective innovation platform that aims at achieving this important goal.

Experts say that introducing and executing such a system can enable entrepreneurs to enjoy the following advantages:

Create cohesion in the workplace

When workers in a particular business organization do not have a sense of unity among themselves and loyalty to the establishment that employs them, productivity suffers. This is because even through each individual employeeis proficient, hardworking and responsible it is not possible for all the members of the workforce to function as a team. This ultimately results in friction, mis-communication, dissatisfaction and conflict.

Due to this, the quality of the product or service the business is producing suffers. In such a situation, it is essential for an entrepreneur to promote innovation in such an establishment so as to foster a sense of unity among the employees. As coworkers improves lines of communication among themselves creative ideas on improving the quality of the product they are making or services they are rendering begin to flourish.

Nurtures Talent on the Basis of Diversity

When a business establishment employs workers from diverse backgrounds usually find a plethora of creative ideas come out from such individuals that encourages innovation.  Introducing an effective innovation platform goes a long way in creating repository where members of the workforce and managerial personnel can deposit their suggestions.

Diversity in the workplace enable entrepreneurs and those in charge of management look at issues from their employee’s prospective, highlight errors in their ideas and finally implement the best plans. This acts as a catalyst in improving productivity and profitability of such organizations in the long-run.

Enhance Productivity

When an entrepreneur creates an environment within their organizations that encourages creative thinking and innovation, they begin to notice an increase in productivity. This is because the employees working on the assembly lines began to think of feasible solutions to the problems they face when carrying out their activities and suggest them to their superiors.

These foremen then forward such ideas to the top managerial personnel, who gathers, sorts and evaluate them. These department head in consultation with the proprietor implement those ideas that they think can help the establishment attain its organizational goals.

The above advantages make it clear that an effective innovation platform can be a catalyst in enabling a business establishment achieve its organizational goals in the marketplace. It fosters a sense of unity among the workforces and enable them to offer their creative ideas to management to attain this objective.

Calculation Of Brokerage Matters A Lot

In the stock market, there are many sorts of calculations one has to go through before investing. There are lots of trades one can go for, but one has to check all the pros and cons of the trade so that accurate decision can be taken which can help to achieve the desired goal. There are primarily two markets which are known as share and commodity market. There is also a currency market where one can trade. The commodity is such a market where one can deal in various commodities such as oil, metals, spices and grains. The lots of the same are already there on the exchange, and the margin money is also decided by the lots. There are various exchanges on which one can trade.

The requirements:

To trade in the commodity market what one requires is the trading account. The lot amount is already provided in the system, and the operator can easily check if the margin money is sufficient to carry out the trade or one will have to make the payment. For a broker, the brokerage on every trade is the revenue, and hence there is commodity brokerage calculator software is also available in the market. In the majority of the cases, the system automatically calculates the brokerage and one can also check the same with each bill generated after the trade or settlement. With every trade the bill is generated which shows the trade amount, rate of trade and settlement including the brokerage and government charges.

The trading system:

There are trades such as future and options available in the market, and those who deal in this market must get a future brokerage calculator also irrespective of the profile whether he is a trader or an operator. The system of trading is also easy. There are online as well as offline accounts, and one can prefer any of them as per own choice. In the case of an online account, one needs to have a computer with an active internet connection while in an offline account one does not need the help of any computer as he just needs to call the terminal operator to place the order.

The terminal operator may ask about the position if one wants to have. It means whether one wants to buy the lot at the current rate or wants to buy it at a rate of his own. So if the commodity hit that rate he will have the lot in his account or else the order will be canceled. Here the buyer may also look at the trend of the market and check the guidance provided by the experts also. He can also ask experts in some of the tv channels too. In a nutshell, one can say that the commodity or equity market trading is not a game that one can play blindfold. One needs to go through proper research and own knowledge only before hitting the transaction. In case the change of market the rates may vary at a pace that one may not have the time to square the position also.