Financial Leadership: 4 Tips for Business Owners

Being the leader of a business is not an easy job by any means and having an executive leadership masters is becoming a must if you wish to assume a similar leadership position in the future. Running a company, especially the financial aspects, is a constant challenge, irrespective of how successful the company is at the moment. In order to help the new entrepreneur or the financial head of a business, the following four simple but effective tips have been collected from some of the most prominent corporate leaders around today.

The Number Game

Nothing is more important than numbers when it comes to finances and you need to figure out and track which metrics are most important to the business. Make it a routine to have weekly and monthly scorecards so that you can keep your eyes on those all-important numbers on a constant basis and maintain your focus on improving them.

Make the Numbers Public to Your Employees

Once you have the numbers, you need to make everything as transparent as possible. Make sure that everyone who is on the company’s payroll can see those metrics. This will invariably encourage them to improve those numbers because a company that makes more profits pays better and allows for better working environments for its employees. In addition to that, this transparency ensures that your employees are not overestimating your profits and assuming that they are being underpaid.

Invest in What People Want

This is perhaps both the most important and the most difficult business decision that you will have to take as an executive leader. While investing and producing what your customers want seems simple enough, in practice, it’s far from it. Once you figure out what the bulk of your customers want, you need to forego many other aspects of your business model that might appeal to you or others. For example, Apple makes products that cost significantly more because they have a huge profit margin and they sell their brand name. Apple knows that people will buy their products, irrespective of the price tag. If they shift their strategy and try to provide better value-for-money products like most other companies in the industry are trying to do, they will lose their unique selling point. As complicated as it is, figuring out what your target customers want and sticking to it is what most successful companies in the world do.

Use Purpose as a Motivator

If you are just starting out, you will probably not be able to give your employees very impressive salaries. So what’s there to keep your key employees from leaving your company and joining a bigger one for a far greater amount of money? The answer to that question is “purpose.” Be clear with what you are trying to achieve as a unit and motivate them by making your employees a key part of that future. People work for things other than money and purpose is one of the strongest motivators in the world. The promise of a bigger and brighter future and the purpose of building something great together have laid the foundations for great companies in the past.

It is recommended that you complete your executive leadership masters online so that you can also finish your education in finance at the same time.

Coupled with the training in leadership and the necessary financial knowledge, you should be able to put the techniques mentioned here into practice with great success. There will still be mistakes as nothing can really replace experience, but you will make far fewer of them and progress much faster than anyone else in your position.

How to Efficiently Run Your New Business

Running your new business may not mean that you take charge right away. Ideally in your contract of sale there’ll be a hand over period in which you’ll be trained in the day-to-day operations of your purchase. Use any of these periods wisely as a time to critically assess the workplace as it currently is. For example, you may take the time to see how existing staff do their job and get them to explain their workplace processes. In some instances, formal standard operating procedures will vary to what is actually performed when completing a certain task, so identifying any gaps in this process will allow you to get a clearer picture of what needs to be updated in terms of internal communications.

sole proprietorshipIf you inherit staff from the previous ownership, remember that although there may be a mix of people who do not think or even act the same, this diversity cultivates success. As tempting as it is to replace staff with people who are more acquiescing to your anticipated, new management style, think carefully before transitioning them, they too may also need time to adjust to you.

Another valuable task to undertake when you’re running a new business is to audit its technological capability. Generally, tools will need to be experimented with then adjusted to suit the specificities of your business as part of a process of collective learning. If you don’t have the capability in-house, it could be worth getting a consultant in to assist you to review your company’s use of technology and make suggestions to streamline processes. Not only will improving a new business’s technological competency translate into improved organisational efficiency, but will free time for other activities such as research and development.

Once you’ve had a chance to see how the business is currently operating, that should inform how you will proceed to manage it. Even if you already have an existing management style, it will need to be adjusted to suit the new workplace it is being applied in, even if it’s in a similar business to your previous experience. For some background preparation in this area, research the varying approaches of organisational theories such as network theory, ecological theory, general systems theory and strategic choice theories. It’s completely fine to adopt aspects from several schools of thought to best suit your business. It may be of interest to know that due to increasing dynamic nature of business in areas of technology, risk management and market trends, strictly hierarchal organisational structures deliver lower levels of performance than flatter, cross functional models of organisation. Therefore, you may consider a more adaptive style of management to improve your efficiency.

So whether you’re at the stage of researching businesses for sale or are about to settle on one that you’ve already purchased, it’s important to approach its management firstly from a position of listening and learning. This enables you to develop a stronger and more relevant strategic plan that will lower operating costs and boost efficiency.

Seven Great Reasons You Should Set Up Offshore

Starting a business entails planning and analysis; moreover, in this stage you need to know what benefits you can gain and what challenges you may face. If you’re starting a vet business, for instance, you may need to consider having a mechanism for credit card processing, vet office legal permits, tax registrations, and various licenses.

It seems daunting to establish even a small business in your locality. You might have heard that there are some entrepreneurs who enjoy several benefits in establishing their businesses offshore, and you can follow the same path if you want.

You don’t have to have a large company to incorporate offshore, as even small-business owners can set up their business this way. There are a variety of businesses to set up your business this way, and today we will go over seven of the top reasons.

Image Courtesy of: uplifttoursandtravel.com

  1. Low Capital

Normally, registering for an onshore business requires a certain amount of capital. This is why it’s hard to start a business if you want to start from the scratch.

Setting up an offshore company is a good alternative because sometimes the fees are the same if not lower. Moreover, there are also places where there is no capital requirement at all, whether you want to start a vet clinic or an custom insert molding service. If you reside in the locale, you may find living costs less as well.

  1. Quick Processing

Putting up a business doesn’t end with asset procurement. You need to register it with government agencies for compliance reasons. Surprisingly, setting up offshore is fast and simple.

You don’t have to go through a complicated process just to get some permits and other legal certifications.

  1. Protection of Assets

You may think that investing offshore is risky as the IRS has been cracking down with compliance and regulatory issues. Ironically, offshore investing offers more asset protection than what many people think.

Your offshore assets serve as an international asset which is also recognized legally, with privacy and safety depending on the country.

  1. Low Labor Cost

When setting up a business offshore, you will still need people to work for you. The good thing about this is that labor costs can be much lower offshore. You can hire as many people as you want without affecting your operational budget.

  1. Simplified Reporting Requirements

If you have a business stateside, you are probably sick and tired of annual reports you need to produce to renew your business licenses and to pay your taxes.

Most of the requirements you need to produce are audited financial statements and other registrations and permits. However, if you have an offshore business, all you have to do is to pay a very low annual registration fee.

  1. Low Taxes

This is actually the primary reason why many business people establish their own companies offshore. It’s not a secret that offshore businesses pay very low, if any, taxes.

Places like the Cook Islands and Nevis have no taxes at all and are considered two of the safest places for businesses to incorporate offshore.

  1. Privacy and Confidentiality

Another reason why many business people consider offshore investing is because of privacy and confidentiality. Offshore, you don’t have to declare confidential information such as the names of directors, financial information, and the like. It’s good to know which countries still have secrecy laws and which ones do not

Conclusion

Setting up a business offshore is no longer an experimental approach. It has been done by many entrepreneurs for many years, and this strategy still proves to be profitable. Although there are some challenges you may also face, the above benefits are  reason enough for you to consider setting up a business offshore.

 

Author’s Bio:

Carl Aamodt
Title: Super-Connector at Outreach Mama

Carl is a super-connector with Towering SEO and OutreachMama, who helps businesses find their audience online through outreach, partnerships, and networking. He frequently writes about the latest advancements in digital marketing, and focuses his efforts on developing customized blogger outreach plans depending upon the industry and competition.

 

How A Financial Advisor Can Dramatically Improve Your Business

A financial management consulting service can help your business with critical advice on growth strategies and improved organizational efficiency. This advice can take your business to a whole new order of magnitude.

Let’s take a closer look at how this can happen:

Business Growth Strategiesstock chart

Business growth is difficult for all companies in all industries. When we read the financial press, it gives us a distorted picture of how well businesses in general are doing around the world. We only see the 10 percent who are worthy of media attention and not the majority who fail to create sustainable growth.

Business is hard for most companies around the world for three main reasons:

  1. Companies simply overlook a lot of revenue generating opportunities in their primary businesses. Few C-level executives will claim their business has come close to its the full potential. Since financial business management consultants have rich experience with numerous clients and the advantage of an outsider perspective, they can see the untapped potential in your business, as well as where your money is being squandered and how it can be strategically reallocated to generate significant profits.
  2. Companies who enjoy the advantage of serving a mature market too often diversify into emerging markets hoping to make some fast profits instead of taking advantage of their already well-established business model and trusted connection with a receptive customer base.
  3. Companies may fail to define what they do well and then hit a wall in their core business. When Steve Jobs returned to Apple as CEO, he threw out their frivolous new line of products and began to focus on a core line of specialized, aesthetic, and sophisticated tech products like the iPod, iPad and iPhone. The results of this simple strategy changed Apple’s fortunes.

When these common errors are addressed dramatic changes can happen.

Here’s what strategic growth can look like:

After the University of the Virgin Islands teamed up with Cane Bay Partners, a St. Croix business in the Virgin Islands, the university was advised to develop a progressive Computational Science and Business Modeling curriculum for the university. This growth strategy introduced students to leading edge training in decision sciences, predictive analytics and econometrics.

Organizational Efficiency

Another area where businesses need help is learning how to improve organizational efficiency.

Here are 5 ways a business management company can offer a refreshing perspective.

  1. It can show a business how it measures up against everyone else in their industry and set some realistic benchmarks for success.
  2. It can show a business how to create value throughout its organization by replacing unnecessary complexity with effective roles and goals. Organization simplification is an answer to disruptive technologies and globalization forcing a company to struggle with it strategic objectives.
  3. It can show a company how to make effective decisions in every phase of its business processes.
  4. It can show a company how to recruit for talent and create a future supply of leaders. In a technologically driven world, talent is the new wealth. We are leaving the industrial age behind and emerging into a knowledge era. Nurturing technologically-literate, high performing, talented people will allow a company to leapfrog over its competitors. Kate Donovan, the Global RPO President for ManpowerGroup Solutions, said,”
    According to ManpowerGroup’s 2013 Talent Shortage Survey, 35 percent of employers worldwide are having trouble finding staff with the right skills. When organizations don’t have the right talent at the right time, the cost comes in the form of missed opportunities, dissatisfied clients and a negative impact on the bottom line.”
  5. It can show a company how to use measurement, incentives, and other performance enhancing tools to create a highly effective organization.

Conclusion

With the right advice, it’s not inconceivable for you to take your business to a whole new order of magnitude. They bring to the table a variety of ways to analyze your business, measure its effectiveness, reduce risk, and improve its developmental model.

When Cane Bay Partners advised the University of Virgin Islands on the best type of classes to offer their students, they had enough foresight to understand that we are heading for a world where there will be many more high-tech computer jobs than people to fill them. Specifically, there will be about 5 million unfilled jobs by 2020. Their financial advice was an incredible growth strategy for the university, the student’s fortunate enough to be enrolled, and for the Virgin Islands itself.

The potential for offering these classes was always there, but it took a financial business management company to point out the future and how to align with it.

 

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