Avoiding Critical Business Problems

There are certain critical business problems that must be avoided at all costs. This article identifies these problems and shows how to avoid or resolve them. This is especially important where the owner lacks business experience. (This is article #3 in a series on basic business information and insights).

Owner is not qualified to run the business

It can be difficult for the average person to plan, start, and operate a business. The business owner has to be a take-charge person. The owner has to be able to make decisions without having all the needed information. The owner has to face up to problems as they arise and resolve them. The owner has to know what he or she wants and take the needed steps to achieve these goals.

When I think of the character traits needed by a business owner, I remember a scene in a Godfather movie. There was some kind of problem and his assistant had to report it to the Godfather immediately. You see, if there was a problem the Godfather wanted to know about it so he could correct it before things got worse. The Godfather might not be a likable person to most people, but he was certainly a take-charge person. Contrast that attitude with those people who prefer to ignore problems in the vain hope that the problems will simply disappear somehow.

Therefore, to get qualified to run a business, you may have to develop empowering beliefs and gain the knowledge and experience needed to run whatever type of business you are starting.

Faulty business concept

The business concept is the basis for a proposed business venture. It’s a good idea to validate this concept before starting the business. This is especially true if a business failure might incur a large loss.

You can validate a business concept using market research, financial projections, and a business plan. If you cannot validate the business concept on paper, it normally is best to either change the concept or abandon the proposed business.

The business concept needs to make sense and be realistic. Many business concepts include certain implicit assumptions that may or may not be realized. It usually is a good idea to verify all important assumptions and estimates.

Following are some possible problem areas that the business concept may not consider or handle properly:

* Costs and expenses may be larger than expected
* Intended customers may not want the product
* Owner may have chosen an ineffective or overly expensive advertising method
* Owner may not be able to get the resources needed to start the business venture
* Sales volume may not grow as fast as expected
* Sales price for product may be too high or too low

(Strange as it may seem, prospective customers may ignore an item with a low price because they feel that it probably isn’t a quality product.)

Inadequate advance preparations

After deciding on a suitable business concept, the business owner should complete any advance preparations needed before starting normal business operations.

These advance preparations serve to validate many of the assumptions in the business concept. They also prepare the business venture for operations. If the assumptions prove to be faulty, or the business venture is not prepared for operations, then the venture may suffer or even fail.

A large, risky, or complex business venture may require a certain amount of market research to validate the assumptions in the business concept. (For example, there is no point in starting a business venture if not enough customers want the product at its offering price.)

The owner may require a certain amount of training or information to be able to run the business venture effectively and deliver a quality product. The time to get this training and information is before business operations begin. (Customers may become dissatisfied if the owner needs a lot of on-the-job training.)

Before beginning operations, the owner should satisfy all startup requirements for the business venture. This include getting any required insurance, identifying and satisfying applicable government requirements, arranging for any required loans, contacting suppliers, and so on. (The government may penalize or even close down a business venture for failing to meet their requirements.)

Failing to monitor business results

If your insights into your business results consist only of an annual financial statement, you may not have adequate control over your business. You may need reports that are timelier and that focus on all the important aspects of your business.

Following are some reports that might provide this needed information:

* Daily summary of cash receipts, cash disbursements, and ending cash balance
* Weekly summary of new customers and how they were obtained
* Monthly summary of sales and gross profits for each product line sold
* Monthly financial statements showing results for month and year to date
* Monthly comparison of projected to actual financial results
* Annual financial statements showing results for year and several prior years
* Occasional surveys to determine customer satisfaction with your products and business procedures

After discovering a problem using your reports, the next step is to do whatever is required to solve the problem.

Unable (or unwilling) to deliver a quality product

As far as your customers are concerned, the essence of your business venture is the ability to deliver a quality product. For most customers a quality product is whatever satisfies their needs and desires at a price they can afford.

Therefore, business owners must first determine the needs and desires of their likely customers. Then they must design a low-cost product that can satisfy these needs and desires. This usually requires that the business owners must be familiar with both their likely customers and the various ways available to produce and deliver their proposed product.

I have noticed a deplorable tendency in some business owners who seem to think that whatever type of product they choose to supply to customers should be good enough. They tend toward a “take it or leave it” attitude. Unless there is no competition, this is not the way to run a sound business venture.

How to Become a Business Manager

Business or administrative managers form the backbone of a company. They are responsible for keeping the wheels of the business moving in a smooth manner by planning, coordinating and directing a broad range of activities in their organization.

If you have excellent organizational, communication and analytical skills, a friendly disposition, and above all, leadership qualities, you may want to explore the option of becoming a business manager.

Most businesses, however, have some predefined qualifying criteria to fill business manager positions in their outfits. One of the most important credentials that you’ll need for becoming a business manager is a relevant college degree.

There are several business degree programs you can choose to become a business manager. Let’s take a closer look at some of the business programs that will lead you to this exciting and lucrative career.

Associate’s Degree in Business Management

According to the 2010-11 edition of the Bureau of Labor Statistics’ Occupational Employee Handbook (bls.gov/oco/ocos002.htm#training), graduates with an Associate’s degree are increasingly being favored for the role of office managers in small business firms as well as lower-level administrative positions.

You may also qualify for entry-level or assistant jobs with an Associate’s business degree. As a business manager, you may need to exhibit accounting skills. So, choosing business programs with emphasis on accounting could prove useful in your day to day work.

Graduates can further their career prospects by acquiring relevant professional certifications on top of a business degree.

Bachelor’s Degree in Business Administration

However, a Bachelor’s degree in Business Administration may tie in more closely with your career objective of becoming a business manager.

Most large companies require at least a Bachelor’s degree for higher-level administrative services manager roles. Business degrees at this level will impart training to graduates in a variety of advanced business concepts including accounting, marketing, finance, human resources, business law, etc.

The role of a business manager also involves working closely with technology since it has become such an integral part of running a business. That’s perhaps why most business programs have started integrating topics such as computer fundamentals, database management, and other high-tech courses into their curricula.

Master’s Degree in Business Administration

Getting a graduate degree is one way for business managers to advance their careers. A Master’s degree in Business Administration or related field may help them rise up the ranks to higher-level positions in their organization.

In fact, many employers encourage their employees to seek advanced degrees as a tool for career progression. Some even sponsor part or whole of the college tuition and fees of deserving candidates.

There are many options for business managers who are interested in advanced business degrees. Executive programs targeted for working professionals that usually run classes on weekends are something they can consider.

Another very attractive option for such individuals is an online MBA degree. Online business programs can be pursued by candidates without disturbing their current lifestyle.

Having The Best Charges On Payday Cash Loans

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You possess most likely heard about payday cash loans, but you aren’t sure when they are ideal for you. These firms offer simple-phrase financial loans to people who are using a difficult time economically. Sounds great, proper? It can be if you find out all that you should know before you apply for just one. Here are some ideas that will help you using these financial loans.

Keep your personalized protection in mind if you have to personally go to the pay day financial institution. These areas of business deal with huge amounts of money and so are generally in economically impoverished aspects of community. Try to only pay a visit to while in daylight time and recreation area in highly obvious places. Go in when other customers are also around.

For folks who get stuck inside a situation where by they already have more than one cash advance, you need to think about alternatives to spending them away. Consider using a cash advance away your charge card. The monthly interest will be reduced, and the fees are considerably less compared to payday cash loans.

When you are thinking of a short phrase, cash advance, will not use anymore than you have to. Payday loans must only be used to help you get by inside a pinch rather than be applied for extra cash out of your bank account. The interest levels are too high to use anymore than you undoubtedly need.

Remember that prior to getting your check out coming from a cash advance, the financial institution will subtract fees. So when you remove a loan for just one-thousand dollars, you simply will not get that much. Each financial institution has different fees, so make sure you are aware of these ahead of time.

In case you have applied for a cash advance and have not heard rear from their store nevertheless having an authorization, will not wait around for a response. A postpone in authorization on the net grow older generally signifies that they can not. This simply means you need to be on the hunt for an additional means to fix your short-term monetary emergency.

Make every single try to settle your cash advance on time. If you can’t pay it back, the loaning organization may make you rollover the loan into a replacement. This new one accrues its unique group of fees and financing expenses, so actually you are spending individuals fees two times for the same cash! This can be a severe drain on the banking accounts, so want to spend the money for financial loan away right away.

When confronted with pay day loan providers, always enquire about a charge discounted. Industry insiders indicate that these particular discounted fees really exist, but only to people that enquire about it buy them. Even a marginal discounted will save you cash that you do not have at the moment anyhow. Even when people say no, they might explain other bargains and options to haggle for your personal company.

When you are finishing your application for payday cash loans, you are mailing your own personal information and facts over the internet to an not known location. Being conscious of this might enable you to guard your data, like your interpersonal protection amount. Shop around about the financial institution you are considering just before, you send anything at all online.

When you are at the same time of getting a cash advance, make sure you read the deal meticulously, looking for any secret fees or important pay out-rear information and facts. Will not sign the arrangement before you completely understand every thing. Search for warning signs, for example huge fees should you go per day or higher on the loan’s expected particular date. You might find yourself spending far more than the original loan amount.

Look for the interest levels just before, you obtain a cash advance, even if you need cash horribly. Frequently, these financial loans include amazingly, high interest rates. You need to compare different payday cash loans. Pick 1 with sensible interest levels, or try to find yet another way to get the funds you want.

Seeing as there are generally extra fees and terms secret there. Many people make the oversight of not performing that, and they also find yourself owing a lot more than they obtained in the first place. Always make sure that you are aware of fully, anything at all that you are signing.

If you remove a cash advance, you are definitely taking out your following salary in addition losing a few of it. On the flip side, spending this cost is sometimes needed, to acquire through a tight press in everyday life. In either case, expertise is energy. Hopefully, this information has motivated one to make knowledgeable selections.