"It is often inspiring to read the stories of how businesses came to be. Stories like this can really motivate the would-be Entrepreneur. This article further states that a mission can be spiritual and powerful as well in driving a business. The original article can be accessed here. Stay motivated to let your business dreams come true by continuously following our site.
Showing posts with label Business skills. Show all posts
Showing posts with label Business skills. Show all posts
Financial Management is a tough term, here is a more concise definition, click this. Your 10,000 peso business will need to grow into a much bigger entity. For a preview of other skills that you may need to develop in business, this article may provide more information, read this. Managing your business money is a real skill and this site also has great ideas.
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| Economy |
| Written by Max V. de Leon / Reporter |
| Saturday, 01 May 2010 22:21 |
JUST like in sports, local micro, small and medium enterprises (MSMEs) enjoy the home-court edge in the domestic market so there is no reason for them to cower in the face of international brands.
It has always been my observation that by listening to a person's habitual words, one can determine the emotional stature of a person towards business, success, risk tolerance and mindset. Words can be very powerful that it can make or break a person's life circumstance. Defining words and knowing their true meaning can be very life changing at the same time.
Another aspect that I have observed that is also a powerful indicator to success is the personal use of time. In our previous articles, we have stated that of the two assets TIME is a more valuable asset than MONEY. In our local culture for instance, there seems to be an abundant resource of TIME SLIPPING BY. Partly downplayed by Economics, the Filipino has a tendency of thinking in terms of "A DAY"- as the basic unit of time. For example, we like to think in terms of a "day's work" since our pay in the Philippines is on a PER DAY basis.
The Western culture on the other hand mentally quantifies time more specifically than most of us.
While the concept of "a day's work" is still ever present, the quantify time on a PER HOUR basis. Changing one word from the phrase has made all the difference. From PER DAY to PER HOUR.
This is not to say that the Western practice is better. There is also a downside also this since, they are perceived as work horses and live in a very structured world. The Pinoy culture on the other hand has a lot more leeway and 'siestas' in between. But in terms of EARNING POTENTIAL, you would know one who earns or gets paid on A PER HOUR basis is way better than those paid on A PER DAY BASIS. If you get what I mean.
The point of this article is that the strong points in evaluating the income potential of a business is by thinking in terms of the smallest units of time. For example if I have a restaurant that is earning a net income of Php 20,000.00, then that would simply say that in my 20 days of operations in a month, the business is earning Php 1000/day, and if I operate for 8 hours in a day, it would mean that the business is earning Php 125/day. If an entrepreneur would use this from marketing point of view, he would use this data to identify "slow hours" and create promotions and programs that would increase the hourly net bottomline. Click Here to Read More...
Another aspect that I have observed that is also a powerful indicator to success is the personal use of time. In our previous articles, we have stated that of the two assets TIME is a more valuable asset than MONEY. In our local culture for instance, there seems to be an abundant resource of TIME SLIPPING BY. Partly downplayed by Economics, the Filipino has a tendency of thinking in terms of "A DAY"- as the basic unit of time. For example, we like to think in terms of a "day's work" since our pay in the Philippines is on a PER DAY basis.
The Western culture on the other hand mentally quantifies time more specifically than most of us.
While the concept of "a day's work" is still ever present, the quantify time on a PER HOUR basis. Changing one word from the phrase has made all the difference. From PER DAY to PER HOUR.
This is not to say that the Western practice is better. There is also a downside also this since, they are perceived as work horses and live in a very structured world. The Pinoy culture on the other hand has a lot more leeway and 'siestas' in between. But in terms of EARNING POTENTIAL, you would know one who earns or gets paid on A PER HOUR basis is way better than those paid on A PER DAY BASIS. If you get what I mean.
The point of this article is that the strong points in evaluating the income potential of a business is by thinking in terms of the smallest units of time. For example if I have a restaurant that is earning a net income of Php 20,000.00, then that would simply say that in my 20 days of operations in a month, the business is earning Php 1000/day, and if I operate for 8 hours in a day, it would mean that the business is earning Php 125/day. If an entrepreneur would use this from marketing point of view, he would use this data to identify "slow hours" and create promotions and programs that would increase the hourly net bottomline. Click Here to Read More...
A couple of weeks ago, I happened to catch a glimpse of a poster advertising that Chinkee Tan was in town. His seminar and book entitled "Till Debt do you part" was catchy and since the tickets were ridiculously cheap (300 pesos) because it was subsidized by the Victory Church, I decided to attend and see what good advice he had to offer.
The seminar venue was quite filled and the speaker started round 1 with a good mixture of jokes, power point slides and a large dose of actual experience. Essentially he was teaching the audience to be personally responsible for their income and take an active part in managing both income and expenses and not leave retirement to chance.
You might be wondering what this has to do with business. It has everything to do with business. In the same way that we personally manage our income and expenses and invest our savings in several vehicles, be it bonds, equities in stock or time deposits etc. The income of a business also needs to be managed carefully, securing the future of your business or company for that matter.
Many authors like Kiyosaki, smartly teach that business income can be made to BUY ASSETS like real estate or precious metals. But this needs to be done with consultation with good advisers. Financial planning for your company's income will be a hedge against uncertain economic times ahead. Be it a carenderia, a siomai stand or a small lending, plan the income portfolio of business instead of taking fat salaries that end up in the belly of unproductive consumerism. Click Here to Read More...
The seminar venue was quite filled and the speaker started round 1 with a good mixture of jokes, power point slides and a large dose of actual experience. Essentially he was teaching the audience to be personally responsible for their income and take an active part in managing both income and expenses and not leave retirement to chance.
You might be wondering what this has to do with business. It has everything to do with business. In the same way that we personally manage our income and expenses and invest our savings in several vehicles, be it bonds, equities in stock or time deposits etc. The income of a business also needs to be managed carefully, securing the future of your business or company for that matter.
Many authors like Kiyosaki, smartly teach that business income can be made to BUY ASSETS like real estate or precious metals. But this needs to be done with consultation with good advisers. Financial planning for your company's income will be a hedge against uncertain economic times ahead. Be it a carenderia, a siomai stand or a small lending, plan the income portfolio of business instead of taking fat salaries that end up in the belly of unproductive consumerism. Click Here to Read More...
Enriching one's business vocabulary can surely make the difference in the life of a new Entrepreneur. As business vocabulary increases, the chances of having a better bottom line also multiplies.
One of the concepts that many of us can try to grasp is the idea of working IN and working ON the business. These two concepts are very simple but they can empower the business person to build a business properly.
Working IN a business means, working on the day to day routine and the basic technicalities that normally run to make the business survive. This includes selling, clerical, accounting, logistics, janitorial etc. The mundane but essential skills that make the business make money in it's day to day operations constitute the WORKING IN the business concept.
Working ON a business on the other hand means focusing on systems that can help the business work without the Entrepreneur being there on a daily basis. It is the creation of systems that can help a business become good to great. It is the implementation of systems that make a Jollibee or a McDonald's restaurant run anywhere in the world using local and young manpower. Working ON the business also includes knowing what Entity you are placing the business IN and the Characteristic of the business as to what asset class in derives it's income from.
To be successful means focusing on the 2 aspects of the business. It is my opinion that 9 out of 10 business start-ups fail because the Working ON part is neglected. While the business owners focus on the everyday tasks of running a business, only few Create a system to make it run without them. Click Here to Read More...
One of the concepts that many of us can try to grasp is the idea of working IN and working ON the business. These two concepts are very simple but they can empower the business person to build a business properly.
Working IN a business means, working on the day to day routine and the basic technicalities that normally run to make the business survive. This includes selling, clerical, accounting, logistics, janitorial etc. The mundane but essential skills that make the business make money in it's day to day operations constitute the WORKING IN the business concept.
Working ON a business on the other hand means focusing on systems that can help the business work without the Entrepreneur being there on a daily basis. It is the creation of systems that can help a business become good to great. It is the implementation of systems that make a Jollibee or a McDonald's restaurant run anywhere in the world using local and young manpower. Working ON the business also includes knowing what Entity you are placing the business IN and the Characteristic of the business as to what asset class in derives it's income from.
To be successful means focusing on the 2 aspects of the business. It is my opinion that 9 out of 10 business start-ups fail because the Working ON part is neglected. While the business owners focus on the everyday tasks of running a business, only few Create a system to make it run without them. Click Here to Read More...
Starting a good business entails a lot of emotional discipline, good old fashioned persistence and a lot of 'not so common sense'. Although you need a lot of words in your financial vocabulary, but the basics like 'gross income', 'cost of goods', 'cashflow' and their proper meanings will do, you need not talk like a Big Business Guru and sound complicated to be in business.
If you can decide to do the following, then the chances for succeeding in a venture will be highly probable:
1. KNOWING HOW TO SELL- this is the first crucial step in being able to operate a business, you might have the prettiest stall or the nicest office in the block, but if you can't sell, then nothing really happens. Sales is the blood of businesses and 'nothing happens unless someone sells something'.
2. CREATING A SYSTEM or A PROCEDURE THAT SELLS- In the Philippines, there is a lot of confusion about 'selling' and 'being in business'. We often hear people say "Nagbebenta ako ng ______, sideline ko na negosyo". Selling is a skill and is part of a business but not the business per se. Selling is a very important skill but if the selling stops when you are not physically there then steps can be made to take the process 1 step higher. A business on the other hand, sells via procedures or strategies that have been developed to enable the owner to sell even without being there. This is where the word Marketing comes from--selling via a set of systems placed. It is good to know where we are really at so that we can take steps to 'automate' ourselves.
3. IMPROVING THE SYSTEM- it takes time and money to develop a system for a little business so this will entail lots of patience. Even very simple instructions to employees need time and reminders to set in. In placing strategies, one needs persistence and continuous trial and error until it gets done right.
4. AN ENTREPRENEUR is a micro company in itself-- start your business like it is already a big company (except the salaries of course!). You will have to practice being the Financial manager, Human resource, operations manager etc., until such time that the business can afford to have these people on board.
Remember there are NO risky businesses, ONLY RISKY BUSINESS PEOPLE. You are a reflection of your business entity. Continuous learning in this section will help eliminate the riskiness found in all of us.
If you know someone who is starting a venture please refer this site to them, you might be doing them a huge favor and it might just save them from errors that could otherwise be prevented. Click Here to Read More...
If you can decide to do the following, then the chances for succeeding in a venture will be highly probable:
1. KNOWING HOW TO SELL- this is the first crucial step in being able to operate a business, you might have the prettiest stall or the nicest office in the block, but if you can't sell, then nothing really happens. Sales is the blood of businesses and 'nothing happens unless someone sells something'.
2. CREATING A SYSTEM or A PROCEDURE THAT SELLS- In the Philippines, there is a lot of confusion about 'selling' and 'being in business'. We often hear people say "Nagbebenta ako ng ______, sideline ko na negosyo". Selling is a skill and is part of a business but not the business per se. Selling is a very important skill but if the selling stops when you are not physically there then steps can be made to take the process 1 step higher. A business on the other hand, sells via procedures or strategies that have been developed to enable the owner to sell even without being there. This is where the word Marketing comes from--selling via a set of systems placed. It is good to know where we are really at so that we can take steps to 'automate' ourselves.
3. IMPROVING THE SYSTEM- it takes time and money to develop a system for a little business so this will entail lots of patience. Even very simple instructions to employees need time and reminders to set in. In placing strategies, one needs persistence and continuous trial and error until it gets done right.
4. AN ENTREPRENEUR is a micro company in itself-- start your business like it is already a big company (except the salaries of course!). You will have to practice being the Financial manager, Human resource, operations manager etc., until such time that the business can afford to have these people on board.
Remember there are NO risky businesses, ONLY RISKY BUSINESS PEOPLE. You are a reflection of your business entity. Continuous learning in this section will help eliminate the riskiness found in all of us.
If you know someone who is starting a venture please refer this site to them, you might be doing them a huge favor and it might just save them from errors that could otherwise be prevented. Click Here to Read More...
The first thing that I would do is Congratulate you for having 10,000 pesos saved up in your account, not many Filipinos are keen savers of their hard earned money.
The first thing that one usually thinks of when there is spare cash (be it 1,000 , 10,000 or 100,000 for that matter) is "Magnenegosyo ako!" Going out the first time, our hero tries to find where to invest his money. Be it a Sari-sari Store, a Lotto outlet, a tapsilogan or a carenderia, we are all interested whether the money does come back with a little interest called profit.
What our hero does not realize is : 9 out of 10 start-up businesses fail in the first year. Sa Tagalog, "Mga Siyam sa loob ng Sampung negosyo na nagsisimula palang ay nasasara o nalulugi sa unang taon ng pagnenegosyo!" (I hope my Filipino teacher is not reading this)
Why do they fail on the first year? It is because of various reasons. Some may blame it on lack of capital, some on management. What our hero does not know is that Setting up and Running a Business is a SKILL. It is what we call na "kakayahan", something that needs to be learned, developed and practiced with appropriate mentors.
It is like riding a bicycle. You would not want to ride a bicycle in EDSA without first practicing intensively now would you? But most of our brothers and sisters, do exactly the same when opening a business. They think the capital will make them smarter when in truth, money is just money and does not have power in itself whatsoever.
Adequate preparation, learning what makes a good business run, understanding Cash Flow and basic accounting procedures and knowing the ins and outs of the business will make one join the 10% that do succeed in the world of business and investing. Click Here to Read More...
The first thing that one usually thinks of when there is spare cash (be it 1,000 , 10,000 or 100,000 for that matter) is "Magnenegosyo ako!" Going out the first time, our hero tries to find where to invest his money. Be it a Sari-sari Store, a Lotto outlet, a tapsilogan or a carenderia, we are all interested whether the money does come back with a little interest called profit.
What our hero does not realize is : 9 out of 10 start-up businesses fail in the first year. Sa Tagalog, "Mga Siyam sa loob ng Sampung negosyo na nagsisimula palang ay nasasara o nalulugi sa unang taon ng pagnenegosyo!" (I hope my Filipino teacher is not reading this)
Why do they fail on the first year? It is because of various reasons. Some may blame it on lack of capital, some on management. What our hero does not know is that Setting up and Running a Business is a SKILL. It is what we call na "kakayahan", something that needs to be learned, developed and practiced with appropriate mentors.
It is like riding a bicycle. You would not want to ride a bicycle in EDSA without first practicing intensively now would you? But most of our brothers and sisters, do exactly the same when opening a business. They think the capital will make them smarter when in truth, money is just money and does not have power in itself whatsoever.
Adequate preparation, learning what makes a good business run, understanding Cash Flow and basic accounting procedures and knowing the ins and outs of the business will make one join the 10% that do succeed in the world of business and investing. Click Here to Read More...
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