Archive for the ‘Credit Cards Services’ Category

Setting Your Small Business Budget

Tuesday, January 12th, 2010

Most people have a sense of dread when they hear the word “budget” and imagine something restricting and impossible. As a small Finance_Ch4_Pt1business owner, it’s important that you understand how to set a budget and stick to a budget. Having a budget for your small business is essential. Without a budget, your expenses will outpace your income and you’ll lose all your profits. It doesn’t a take a rocket scientist to figure out that this is no way to run a business! If you want to maintain your profits, you’ve got to:

1) Increase your income

OR

2) Decrease your expenses

Although it would be nice to instantly increase your income (and if you find the secret to that, please let me know!), most small biz owners need to decrease their expenses. Lowering the costs of doing business is the easiest way for you to get more profits. There are a lot of ways that you can cut down on your business expenses. Check out these ideas and save some money (and automatically increase your profits)! One of the biggest areas that business owners go over budget is with software. New software makes us feel professional…and it’s just plain fun! Even if you don’t exactly need it, software can make its way on to your computer. Before you download that next program ask yourself how it’s going to help your business. Is there a way you can do the same task without the piece of software? Will it really help your business or will it just be a waste of space on your hard drive? If you feel it will really help your business then earn it! Earmark a certain amount of money from your profits to spend on your software and then buy it once you’ve gotten the money. That way you won’t be cutting into your profits significantly or spending before thinking about it.

If there’s a software program that you really do need, try to find the smallest version you can get your hands on. Many pieces of software have levels of use. For example, there is database software that can handle hundreds of users and there is a version that is for personal use only. Even if your vision for your business is huge and you imagine that you’ll have dozens of employees someday, you don’t need the full fledged version right now. You won’t be saving money by purchasing it now. You’ll be wasting it. Tell yourself you can always upgrade when the time comes. You don’t need to spend the money right now…you have more important things to spend it on! Be strong and put yourself on a software ban. You can be creative and find other ways to get your tasks done without breaking your budget.

What Do You Need to Align Business With IT

Friday, January 8th, 2010

Discussions about IT and Business alignment are often about closing a certain gap, one that was “opened” in an earlier stage. missionThe question is how did your company get in that situation? Why was there such a gap? And more important; is there really a gap, or are we talking about different views on the complexity of your business. And, how do we solve this?

Alignment should be a continuing management topic. Perfect alignment should be about applying the same rules for any management area. That means applying the same principles for both business management and IT management. As if they were in the same (investment) portfolio, managed by the same investment manager.

This could be done by having both departments listen to a set of shared principles and understand that the same rules will have different impact for different departments. A human resource department could hire new employees on bases of certain ideas. For example :- to start always hiring new employees from a pool of flex workers (wo)manpower  Once there is a real need and once the flex worker fits the profile, the flex worker receives a permanent contract. Try first buy later.

The same kind of rule for an ICT department will have a complete different impact. You can start with a third party to offer a specific system. And once you are confident with the features of the system you could buy it and adapt it to changing needs. If the system however doesn’t agree any longer with the company needs, you need to rearrange a lot of issues. What system will you use instead? How do you migrate from one situation to another, etc.IT issues do normally have a long term impact. Sales is about current targets, here and now. There is not much to align about these two, They represent different elements of the whole organisation.Even if your (IT) organisation is perfectly aligned at one moment, you could have a problem later on. People and systems obey to the same kind of rules, but behave differently.When you are dealing with an alignment issue, make sure that you communicate the differences in profiles and characteristics of different type of resources. Closing the gap is about communication and mutual understanding.

Business Credit can be a seasonal thing

Tuesday, September 29th, 2009

It’s a known business fact that retailers produce 70% or more of their annual income during the holiday shopping season. If you have good cash flow and you buy inventory all year long for that month or so of booming business you might be ready.

But in truth, most businesses are doing or have done their holiday stock orders by September and it’s usually done using their business credit. Many businesses, even the large solvent looking ones, use business credit to stock up for the selling blitz at years end. You can’t be sourcing and ordering in mid November so you need business credit to make those purchases early and get the best pricing and delivery from your wholesalers.

Business credit can come in a few forms. For the smaller mom and pop stores, business credit can be in the form of a personal or business credit card. Using your personal credit card for your incorporated business credit provides some tax and money making opportunities. But the safest way is for the incorporated business to have its own business credit card for small purchases. Larger inventory procurements are better funded with a line of business credit supplied by your regular banker. That way payouts and repayment can be scheduled to your advantage. Just having business credit alone without someone to manage it can be an expanse out of control. The same amount of business credit properly managed can leverage more profit than normal if it is budgeted and shopped for properly.

Personal Finance Newsletter

Saturday, September 5th, 2009

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Putting Your Money to Best Use
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