How Do I Establish Goals for My New Business

Posted by on Apr 10, 2016 in small business management | 0 comments

A business without a goal is meaningless. This will be sounding quite obvious enough. Needless to say, there are but some entrepreneurs who do not at all take the time to do that. It is equally important to focus on goal setting of the organization. Instead of setting goals these people will just go around selling their products or services. These newbie will be chasing every customer who shows slight interest. This is generally done without any clear direction of where the thing should be headed.

The situation can be compared to those people who have been working five, ten, twenty years at a job just to be promoted. Majority of the people do not actually like their jobs. The same rings true for entrepreneurs. There are some people who just set out wanting to make money. They do this without even thinking what they want to accomplish in the aspect of long term goals.

This article shall act as a guide for setting up new goals and derive its importance too.

The process of setting goals for new business:

You should try and pick up the correct goals for your company as too many businesses in the country start out with the wrong goals and incur losses vehemently. Those goals may not be inherently wrong, but they may not be right if you consider the position of the business in the market. The goals are also dependent on the availability of resources. Short term goals do not factor in the bigger picture so you should start with the long term goals. This is because starting with long term goals will give you a clear pathway. People who most likely start with short term goals tend to jump from plan to plan. This will not help you in accomplishing anything.

Try to set long term goals for a period of time, say suppose three to five years. This is to be done while considering company’s vision and core values. The idea that started it all should be a motivational reason for you to build the business further. It is seen that long term goals generally has more weight behind them and also a meaning. Be it customer service, profit, social responsibility, or growth; your long term goal should be able to cover every facet.

You are not advised to set short goals at all. It is just that you should line the short term goals with longer objectives. Suppose if your long term goal is set in three different cities, then you can use short term goals to get them going.

Importance of setting up goals:

It is a very wrong approach if you do not set up goals citing different reasons especially bills and the related ones. Goals take a lot of time to be created. And it also requires a bit of introspection. Take all the time you need. This might be difficult in economic terms. However, devoting this time shall provide you clarity and help the business to flourish.

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How To Screen Employees To Reduce Turnover

Posted by on Apr 6, 2016 in small business management | 0 comments

While approaching a new project you should always begin with the end in mind. It is quite sensible to calculate successes in order to meet or exceed the expectations set by you. The concept seems really simple, isn’t it? But there are so many companies out there who approach talent selection without the end in mind. The problem arises when a filled position is looked up to as the ultimate aim. When hiring new people, employers only notice if the criteria are met in its most basic form.

Posting the job, review of the resumes, making phone screens, conducting interviews- recruitment is a long process. And if an unworthy chap fills a position then you have to repeat all these very often. Reducing this kind of effort will enable you to focus on different other factors of your company. This article shall focus on the effective ways to screen employees in order to reduce employee turnover of the company.

The job preview must be realistic.

It is really simple to let the candidates know early on in the process if the position in question is in a hot or cold environment. You can set expectations according to that. It is not at all a bad thing if the candidates opt out themselves in the process. In the long run it is going to be the best way to remove low potential candidates. Your applicant pool will only be filled with deserving ones. The candidates know they will not be able to adjust in a hot or cold environment and thus removing themselves from consideration. The earlier they realize this, the quickly will the turnover be reduced. The recruitment teams shall not have to spend time interviewing candidates who deselect themselves.

Position relevant competencies should be assessed.

A job relevant assessment or two which depends on the position must be done early on. The assessments should be purely unbiased if they have been properly implemented. These types of assessments are also tailored to the positions in your organization in order to assess competencies. This assessment highly indicates success levels. These can be done by aptitude tests where candidates that score highly in those competencies are more likely to succeed.

Assessment of whether the candidates are motivationally fit.

This step is extremely obvious but many companies tend to skip this important segment while recruiting people. If an employee is not the appropriate for a position, they are going to affect people negatively who have a high job satisfaction. This criterion is typically assessed during the interview and like the rest of the selection process. This position specific process is however overlooked often as the interviewers are not properly trained in behavioral based interviewing techniques. An appropriate interview guide should be tagging along with the interviewers to measure motivational fit. This will, in turn allow for a well informed decision while hiring people.

 

You can follow these simple and effective steps to screen employees and reduce the turnover. This is also beneficial to employees as the will be guaranteed with immense job satisfaction.

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What is Accounts Receivable Aging?

Posted by on Mar 9, 2016 in Accounts Receivable Aging | 0 comments

In the process of business, the accounts receivable aging acts like the lifeblood. The accounts receivable aging is the report the lists the name of the customers who are unpaid, unused credit and invoices. These are arranged with the date ranges. This is the tool, which is used for determining the overdue of payments in the business. This is the tool, which determines the profit flow and the subject from which the profit came. For getting the perfect rating of the business profit, you need to keep a good track of the account receivable aging. Now the question is how to determine the accounts receivable aging?

About It

Do you want to keep a good track of your customer’s payments and receivables? Then you need to keep a good track of your accounts receivable aging. The aging report lists contains columns, which contain the information such as:

  • All invoices that are thirty days older on the left most column
  • Invoices that are thirty-one to sixty days older are contained in the next column
  • The next column contains invoices which are sixty to ninety days old
  • All older invoices are contained in the final column


Better Idea About The Loopholes

For a good flow of your business, you need to keep a good track of the above factors. Good inspection on these factors can give you a better idea of the cash flows and its loopholes. This will eventually lead you to the success, which you have always expected. You must ensure that all the payments are made clear on the date, which it should be. Any overdue of payment should be cleared off at the right time. This is a very important factor for ensuring a good flow of the business. You should remember to check it.

Proper Record Of The Cash Flow

You must remember that accounts receivable aging is the final factor, which can maintain a good flow of money in the business. This is an excellent tool for estimating the due of payment and the unpaid invoices of the customers. Therefore, you should maintain a good record of the accounts receivable aging. Checking the flow of money at regular interval of time can build the quality of business. You should have a good maintenance of the account receivable updates. This can give you a good flow of your business and money. This is a very important aspect of business.

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Keep The Good Flow Of Business

The credit department should also check the records of recent invoices. This can give a good maintenance of the cash flow at present. It is always important to keep the list updated. The transactions should be updated with the regular transactions. The recent overview of the list can help you to get a good indication of the nearest financial situation. Therefore, for ensuring a good future of the business maintaining the good record of the account receivable aging is utterly important. This is the aspect of the business that keeps the growth constant. Hence, you must ensure a good functioning for getting higher returns.

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