With all the things you have to remember to do on a regular basis, balancing your checkbook doesn’t always receive priority. But if you plan ahead and schedule some time for this important task, you will reap the financial rewards.
Before you begin make sure you have the following items on hand: checkbook, ledger book, ATM and deposit receipts, calculator and a pencil. The next step is to check your items. First, separate your returned checks and ATM withdrawal slips into two distinct piles. Then place your returned checks in numerical order and compare them to your ledger book by writing an “X” in the ledger beside every figure that matches a cancelled check.
The next step is to put your ATM withdrawal slips in chronological order (that is, according to date) and compare them to your ledger book by placing an “X” beside every figure that matches an ATM withdrawal amount. You can make final changes to your ledger by comparing your deposit receipts with your bank statement. Write an “X” by every figure in the ledger that matches with a deposit receipt. If you notice any discrepancies after carrying out this relatively simple procedure, you must notify your bank immediately in order to rectify the situation.
To calculate your balance, record you checkbook’s current balance either at the top of a piece of paper, or on the back of your statement. It is recommended you use the back of your statement if your bank provides a worksheet there for calculating your balance. Now, subtract amounts for unclear deposits and bank fees, including monthly fees and those for bounced checks, and subtract from your calculated total. Then add any unclear checks and interest you have earned to this new figure. Finally, compare the final figure to your bank statement.
If you discover at this point in time that your bank has unfairly charged you for something, get in contact with them as soon as possible. Also, if you notice any discrepancies the first time around, or can’t reconcile your final balance to the bank statement, you might want to double and triple-check your calculations.
The power of money can actually be detrimental to your business. Think about it, if all you think about is how much you can make, are you really focusing on the other aspects of running a business such as; quality control, safety of your product, etc. If money is your only motivating factor, what corners are you cutting to make the power of money.
If your focus is only on the power of money you will be missing other opportunities, (to make more money), because the only thing you have on your mind is how much you can make. With the power of money as your only motivating factor you are destined to run into problems with your business. The corners you cut, the opportunities you miss, the people you disappoint, are going to be your downfall.
We see and hear about the power of money more and more every day. We get emails that tout “Get Rich Quick”, “Make thousands working only 2 hours a week”, “Make Money Selling something from home”. While, yes, we all go into business to make money, that cannot be your only motivating factor.
If you are blinded or sucked into these schemes I can pretty much guarantee you, you will get nothing out of it. The only person who will make any money is the person selling it, and usually for only a short period of time. Then, they too, need to find the next “great opportunity”. These type of offers play off of a terrible trait the majority of us in this culture have, “greed”.
Remember, if it sounds too good to be true it usually is. We go into business to provide ourselves with a roof over our heads, the ability to cloth ourselves, and our families, feed ourselves, and help ourselves buy the things we need to keep going. So yes, money is important to us. However, it is not the be all and end all.
The successful business owner realizes that how he runs his business, and treats his customers is paramount to staying successful. Think of some of the offers mentioned above. They sell their offer, the person gets it, realizes it won’t work, and then bad mouths them. So yes, for a while they will sell, but will they ever get a repeat customer? Will that customer recommend others? Probably not.
Those of us in business for the right reasons, in addition to making money, get repeat customers, and our customers refer others to us. And many of us have been in business long enough, have made our mark, are making a good living, and are giving something back. That is what the really successful people do.
You can see there are so many business owners from the large corporations, in show business or sports. Not all of them are only in it for the money. All of these people contribute to a variety of causes. While you might not agree with some of their views, or the way they run their business; they all give something back. So remember, business is not always about the Power of money, it’s about how you treat people, and how you want people to think about and treat you.
Marketing method, strategy and plan are very crucial to determine the success of your business sale. So, here are some marketing tips that you can try to improve your business sale;
Print your best small ad on a postcard and mail it to prospects in your targeted market. People read postcards when the message is brief. A small ad on a postcard can drive a high volume of traffic to your web site and generate a flood of sales leads for a very small cost.
No single marketing effort works all the time for every business, so rotate several marketing tactics and vary your approach. Your customers tune out after a while if you toot only one note. Not only that, YOU get bored. Marketing can be fun, so take advantage of the thousands of opportunities available for communicating your value to customers. But don’t be arbitrary about your selection of a variety of marketing ploys. Plan carefully. Get feedback from customers and adapt your efforts accordingly.
Use buddy marketing to promote your business. For example, if you send out brochures, you could include a leaflet and/or business card of another business, which had agreed to do the same for you. This gives you the chance to reach a whole new pool of potential customers.
Answer Your Phone Differently. Try announcing a special offer when you answer the phone. For example you could say, “Good morning, this is Ann Marie with Check It Out; ask me about my special marketing offer.” The caller is compelled to ask about the offer. Sure, many companies have recorded messages that play when you’re tied up in a queue, but who do you know that has a live message? I certainly haven’t heard of anyone. Make sure your offer is aggressive and increase your caller’s urgency by including a not-so-distant expiration date.
Use stickers, stamps and handwritten notes on all of your direct mail efforts and day-to-day business mail. Remember, when you put a sticker or handwritten message on the outside of an envelope, it has the impact of a miniature billboard. People read it first; however, the message should be short and concise so it can be read in less than 10 seconds.
Send a second offer to your customers immediately after they’ve purchased from your business. For example, your customer just purchased a sweater from your clothing shop. Send a handwritten note to your customer thanking them for their business and informing them that upon their return with “this note” they may take advantage of a private offer, such as 20% off their next purchase. To create urgency, remember to include an expiration date.
Newsletters. Did you know it costs six times more to make a sale to a new customer than to an existing one? You can use newsletters to focus your marketing on past customers. Keep costs down by sacrificing frequency and high production values. If printed newsletters are too expensive, consider an e-mail newsletter sent to people who subscribe at your Web site.
Seminars or open house. Hosting an event is a great way to gain face time with key customers and prospects as well as get your company name circulating. With the right programming, you’ll be rewarded with a nice turnout and media coverage. If it’s a seminar, limit the attendance and charge a fee. A fee gives the impression of value. Free often connotes, whether intended or not, that attendees will have to endure a sales pitch.
Bartering. This is an excellent tool to promote your business and get others to use your product and services. You can trade your product for advertising space or for another company’s product or service. This is especially helpful when two companies on limited budgets can exchange their services.
Mail outs. Enclose your brochure, ad, flyer etc. in all your outgoing mail. It doesn’t cost any additional postage and you’ll be surprised at who could use what you’re offering.
Calculating cash flow is one of the most important tasks of the business owner. Revenue and expenses are rarely constant in a business and cash requirements need to be planned for shortfalls, seasonal factors or one time large payments. At the end of the day, a company that cannot pay its bills is bankrupt.
Unfortunately, while many business owners concentrate solely on their revenues and expenses to manage their cash flow, it’s usually poor management of the cash conversion cycle that so often leads to a cash crunch in the business.
Understanding the cash conversion cycle
The cash conversion cycle is simply the duration of time it takes a firm to convert its activities requiring cash back into cash returns. The cycle is composed of the three main working capital components: Accounts Receivable outstanding in days (ARO), Accounts Payable outstanding in days (APO) and Inventory in days (IOD). The Cash Conversion Cycle (CCC) is equal to the time is takes to sell inventory and collect receivables less the time it takes to pay your payables, or:
CCC = IOD + ARO – APO
This cycle is very important, because it represents the number of days a firm’s cash remains tied up within the operations of the business. It is also a powerful tool for assessing how well a company is managing its working capital. The lower the cash conversion cycle, the more healthy a company generally is. If you compare the results of the cycle over time and see a rising trend it is often a warning sign that the business may be facing a cash flow crunch.
Understanding the components of the cycle
When evaluating cash flow, those factors directly affecting profit, revenue and expenses, are easy to understand and their effect on cash is straight forward; decreases in costs or increases in profit margin results in less cash going out or more cash coming in, and increased profits.
However, the working capital components of the CCC are a little more complex. In simple terms, an increase in the amount of time accounts receivables are outstanding uses up cash, a decrease provides cash; an increase in the amount of inventory uses cash, a decrease provides cash; an increase in the amount of time it takes you to pay your payable provides cash, a decrease uses cash.
For example, a decision to buy more inventory will use up cash, or a decision to allow people to pay for goods or services over 60 days instead of 30 days will mean you have to wait longer for payment, and will have less cash on hand.
An ideal situation (if you able to accomplish this) is that if you can sell your inventory and collecting your receivables before you have to pay your payable. It is not an easy task, but it certainly can be accomplished.
So, as you can see, the management of the conversion cycle can have a large impact on the business’s cash flow and profitability. The management of your cash conversion cycle could determine whether you require a lending facility or not, or whether you can meet financial obligations.
Executive Information System or EIS is the most common term used for the unified collections of computer hardware and software that track the essential data of a business daily activity and performance, and then present it to managers as an instrument to help in their planning and decision-making. With an EIS in place, a company can track inventory, sales, and receivables, compare today’s data with historical patterns.
An EIS will also help in spotting significant variations from “normal” trends almost as soon as it develops, giving the company the maximum amount of time to make decisions and implement required changes to put your business back on the right track. This would enable EIS to be a useful tool in an organization’s strategic planning, as well as day-to-day management.
As information is the basis of decision-making in an organization, there lies a great need for effective managerial control. A good control system would ensure the communication of the right information at the right time and relayed to the right people to take prompt actions.
When managing an Executive Information System, a HR manager must first find out exactly what information decision-makers would like to have available in the field of human resource management, and then to include it in the EIS. This is because having people simply use an EIS that lacks critical information is of no value-add to the organization. In addition, the manager must ensure that the use of information technology has to be brought into alignment with strategic business goals.