Category: Business Principles
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Small Business Model Series Entry #1 – Getting an Idea
So that’s it, I’m going to go into business for myself. I want to own and operate a business of some sort and make some extra money. Who knows, I could be the next Warren Buffett. At age 27, I’m still young enough to have the energy to do the physical part and mature enough now to…
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Liquidity – What Does This Mean?
In business, liquidity is defined as the period of time it takes to turn assets into cash. It takes 20 minutes to turn the balance in the checking account into cash. You head on down to the bank and present a check. You get cash. But most businesses run on just more than the cash in the bank…
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Research Your Business Plan – Part III
Timing is everything, you have heard this before. Well, it is applicable here. I once had a potential client come to me in the middle of June seeking my endorsement to his business plan. He needed to borrow money for his idea. He wanted to sell fireworks. July 4th was less three weeks away. I looked at him as…
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What is a Living Trust?
A tool in estate planning used to minimize probate costs upon the death of the grantor is the living trust. A Living Trust is created while the grantor is alive and typically is revocable in nature. It is designed to manage assets for the best interest of a beneficiary, usually the grantor.
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Develop a Position Profile
The primary goal of the Human Resources Department is to match the best person to the job in the company. This maximizes both effectiveness and efficiency for the company. In order to achieve the best matching of resources to the positions in the company, the human resources director should develop a position profile. This profile…
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Find the Bottleneck
In every business no matter production or service, there exists a bottleneck. Your job as the owner or manager is to find it and fix the problem. Once this one is found and resolved; move onto the next one. There is always a bottleneck to find and fix. What is important is to find the problem,…
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What are Trusts?
A trust is an agreement for one party to care for the assets of another party for the benefit of a third party. In essence, it is a business agreement. The person creating or the original owner of the assets is referred to as the Grantor. The party that will take care of the assets is known…
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The Difference between Marketing and Advertising
The simplest definition for these two misunderstood terms is that marketing involves customer interaction i.e. human contact, whereas advertising is a non-contact form of information transfer. You can read a multitude of professional definitions, academia literature and talk to just about any marketing graduate and you’ll get a lot of different definitions of these two terms.
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The True Cost of Labor
Labor costs are more than just gross wages and benefits. It should include the costs of insurance, employer taxation, human resources management and incentives.
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Gain an Understanding of the Work Environment
One of the top three purposes of any business operation is to provide security to employees. This consists of financial reward, generating self-worth and creating an environment of maximum productivity. Every industry is hampered by outside forces that places restrictions or dampens the spirit of the employees. Before developing a policies and procedures manual, gain…