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Tag: Business

Cost management is key to business profitability

Cost management is key to business profitability

Business
An understanding of cost behavior not only helps cost management as such but also supports strategic and tactical decision-making across the entire spectrum of business operations. Projects, processes and regular operations can all benefit from cost management, leading to overall business performance improvement. Cost Analysis for Decision Support Information When cost accounting started during the industrialization era, the emphasis was on finding the direct costs of making a product or providing a service to help in setting prices. Establishment costs such as rent and administrative expenses tended to be ignored and had to be recovered through the high margins in the selling prices. Emphasis then turned to ascertaining the "full" cost of producing something. Complex and labo...
Business owners need these succession plans

Business owners need these succession plans

Business
For many business owners, family succession planning can be a daunting task. There are a number of variables and individuals to consider in the process. Advisors in different areas of expertise will need to be brought in. Also, what’s the timing for when the plan gets implemented? Again, there is a lot to consider and think about. Here are some valuable suggestions to consider for small business owners, the so-called small and medium enterprises. Not All Children are Entrepreneurial But before the process begins, owners must consider the idea that entrepreneurship does not necessarily pass from one generation to the next. It would be nice to have a child take over the business but that isn’t always the case. In fact according to the SBA, it occurs about thirty percent of the time...
Pros, cons and loans in self employment

Pros, cons and loans in self employment

Business
The pros and cons of self employment are actually pretty great in number, and they might not even be the same for every professional who’s ever dabbled with work at home. For some, hours of working alone can be refreshing, invigorating and the perfect environment for finishing projects. For others, the sheer loneliness of self employment is a deal-breaker. What does it take to work at home? Self Employment: The Pros Who doesn’t want to call the shots, be the boss and make all the decisions? Sure, self employment is great for independence. But at the same time, even that could be considered a con. What are the pros of self employment, and do these positives make up for the negatives that might come with working on one’s own? Flexible Hours. Need to be three hours late next Wedn...
Travel expense forms monitor business spending

Travel expense forms monitor business spending

Business
Travel Expense Forms Monitor Business Spending Managing expenses is a necessary part of any business, but particularly for a small business, due to the need to be extremely vigilant about costs. Reimbursing employee expenses can be expensive, and careful management of these expenses is important. In order to minimize costs, small businesses can maintain expense management systems, to keep track of records and trends. Organizing expenses and reimbursement is generally the same, regardless of the type of travel expense forms used. Expense Management Systems Expense management systems help small business owners organize the process by which employees report, and request reimbursement for, expenses. Travel expenses can add up, particularly for employees that are not careful with a...
Small advertising agency business strategies

Small advertising agency business strategies

Advertising
Small advertising agencies had to reevaluate their business plans when the 2008-09 recession forced their clients to cut back on spending, reducing agency fee and commission income right in the middle of the industry’s digital and marketing revolution. Even for those that survived, there had to be lingering questions about how to weather future downturns in the economy. Should they diversify their services to maintain a balanced source of income? Should they specialize to become the best in their field, particularly one of the newer digital fields? Advertising Age Small Ad Agency of the Year Rockfish Interactive of Rogers, Arkansas had already been doing both well enough to be named the Advertising Age Magazine “Small Ad Agency of the Year." According to Ad Age, Rockfish took in ...
How to develop business strategies for success

How to develop business strategies for success

Finance
Business strategy development starts with a look at the existing situation of the business by answering questions like: Do the businesses in the existing portfolio constitute a good fit? Does the company have any competitive strengths? What approach is best for exploiting opportunities in tomorrow's world? Strategy Development for Big Businesses Big businesses formulate strategies at different levels. Corporate Strategy: The CEO and top management work at developing: A Vision Statement outlining the likely scenario in tomorrow's world A Mission Statement setting down the role the business wants to play in that world A statement of objectives translating that role into specific goals in terms of business portfolios and business results A strategy report specifying th...