Posted on October 22, 2011
Everything in business is eventually going to boil down to money. Any marketplace is all about dollars and cents, and your success as a businessperson hinges on your ability to make more money than what you put in. This includes a wide range of expenses, especially your business partners. The type of arrangement you have with your partners is an important thing to consider.
It might seem simple when you stop to think about it. After all, if you're planning on setting up a business and need a business partner, things are going to be a 50/50 split, right? Well, not so fast. Who says that this partner gets 50%? Did he or she contribute equally to the business? Did this person invest more than you but the business was still your idea?
There are many points here to consider, and that's just talking about one business partner. Now imagine that you have two or more business partners that you have to worry about paying. Things can easily get confusing, and if any partner feels cheated or slighted, then the relationship can dissolve and the business can crash. It's also important to approach paying business partners carefully due to the amount of money you may have to invest and even the amount of money you'll be earning in profit if and when your business is successful. For instance, if you took on a business partner to get started but are barely making enough money to keep afloat, then how can you and your partner both live off the money?
There is a logical way to go about this, no matter what the situation is. When you're first starting your business, you're going to write up a business plan that maps out your expectations and everything that needs to go in the business. You should also do this with any partners you take on. Map out each person's involvement with the business. Read more...
Posted on October 15, 2011
The first thing someone new to international business relations learns is that not everyone is the same. Anytime your business is involved in a global commerce situation, you must understand the nuances that matter most to the individuals with whom you are dealing. Stumbling haphazardly out of the blocks by making customary mistakes can be very harmful to any future success.
It is easier to communicate now than at any other time in history with people around the world, but that often also makes it easier to make mistakes, too. Emails and video conferencing have made it possible to transact business with people on the other side of the globe, and this is a great way to launch negotiations with companies you may know very little about. However, establishing a working situation almost always requires some personal contact before any firm deals are made.
During phone calls or video conferencing, it is extremely important to understand protocol regarding the culture of the people you are conversing with, and the same holds true in any physical meetings as well. Additionally, the first contact requires that you know etiquette concerning the handshake or greeting.
The Importance of the Greeting in International Commerce
In most international commerce, both parties attempt to learn the traditional form of greeting of the other party. Throughout the world, the western handshake style of greeting is understood, but that does not necessarily mean that it should be the automatic first choice. If you are familiar enough with the customs of the person(s) you are meeting, you should be prepared to greet them in that fashion. Read more...
Posted on July 10, 2011
The main principles that a successful business operates on is profit maximization and cost minimization. Appears to be clear doesn't it, but many businesses cannot place their operational practices within this framework.
Business process analysis is a way to help the business person understand how a business unit fulfills its profit mission, or doesn't.
The analysis is used to understand the role and operation of a specific function, and then a collection of functions. Using inventory control as an example, it is important allocate the inventory investment to supply the products when they are needed by the sales activity. Excess inventory and low inventory turnover will cause a cash flow problem and more warehouse space than is actually required. Investment in inventory does not generate a return until its sold. Excess inventory costs money. The business process analysis should develop an inventory turnover ratio that is appropriate for the sales.
However, the reason for the accumulation of excess inventory must be determined and corrected. Will an inventory stocking plan be followed, or is there a person who believes that they can get a good price on volume? The entire inventory process must be analyzed.
The goal of a process analysis is to help businesses identify, refine and execute the processes that will produce a desired business result. Many business efforts stop at developing nice flow diagrams or process maps that no one ever sees again, and probably no one ever understood. Read more...