Discover How To Avoid Your Business Becoming Out of Control

The small business owner will encounter problems from time to time that are outside of the owner’s skill set.

The comfort zone in which the business owner has previously operated may have been disturbed and in many cases cash, or lack of it, is a major contributory factor of the concern.

Quite possibly the owner is working alone, no one with financial or business management acumen to discuss the matter with other than maybe the business auditors; consequently no proactive action is taken and the discomfort and pain intensifies over time.

A ‘quick-fix’ may provide temporary relief but without addressing the causes the problem will arise again; maybe in the same guise or in some other form.

How does the owner overcome this type of problem and improve the business performance, profitability and cash flow?

Maybe a crossroads in the business has been reached. Business growth may have surpassed expectations, the business has become more complex or alternatively a demise has set in that unless quickly arrested will put at risk the whole organisation. The owner may now be unable to exercise the control over the business that was once possible. Business growth may have necessitated more time being devoted to ‘working on’ the business, more customers and suppliers to meet, more negotiations and more time spent building good customer relationships. Alternatively a downturn in the business fortunes may have forced the owner into reactionary mode; deliberating over short-term solutions that have a detrimental impact on the long-term success of the business.

In both instances the owner may be losing control of the business. In such circumstances taking action in acquiring the necessary skills, at the appropriate time, to supplement those of the owner is critical in avoiding disaster for the business.

The cost of NOT taking action in a timely manner usually far outweighs the financial cost of bringing in an expert BEFORE the problem has arisen.

How will the business owner know if additional financial or management skills are required?

If the business owner has developed management skills through external training, attending seminars or the like then the tell tale signs of when additional skills are required in the organization may well be recognised. Alternatively, a check on the controls existent within the business will indicate whether or not help should be sought.

A checklist of controls business owners should enforce include:

· Cash Flow Do you forecast your cash flow on an ongoing basis, measure actual cashflow against forecast and investigate variances?
· Balance Sheet Do you prepare regular management accounts, understand your Balance Sheet and analyse the movements and trends regularly?
· Profit & Loss Are your profits in decline? Do you know the causes? Do you know the appropriate course of action to take? Will you be capable of taking the necessary action?

· Overheads Are your business overheads under control? Are action plans in place to eliminate waste and unnecessary cost from your business?

· Products/Services Do you know the profitability of the products or services you sell?
· Customers Do you know which of your customers generate the most profitable business?
· Suppliers Are your suppliers reliable and supply cost effective, quality products and services?
· Quality Are robust quality systems in place that protect your business? Is waste or failure in service or product avoided?
· Business Performance Have you set key performance indicators? Are they reviewed regularly and acted upon?
· Future Direction Have you set your business and personal goals? Do you have a business strategy for the immediate, medium and long term?

If the business owner answers NO to even one question above, then consideration should be given to correct the weakness or engage an expert (full-time or part-time) to help re-focus, add to the business skills, improve business performance and success of the business.

Points to Consider During International Investing

Since the past few years, the trend of international investing has increased rather rapidly. If you are also thinking of investing internationally then you should research a lot before you invest in any particular organization. Research always pays off. When you are doing it you think at the back of your mind what a waste but how untrue this thought of yours is you realize later on when you feel you have an international investing than everybody else. Once you are into the business of international investing stay familiar with all the economic trends prevailing globally so that nobody dares scamming you or performing unfair activities with you.

Investing internationally depends on many different factors which you have to review and understand carefully. The most important factor is to have the ability to take care of all kinds of unexpected risks generating. Some steps that you can take to protect your international investing are mentioned below:

1. Is everybody around into international investing? This element should be your source of motivation, do not rush into international investments just because the rest are doing the same too. Even if you get a proposal which glitters like gold do not invest your money recklessly take wise decisions because it is your money and once it goes down the drains you will not get it back.

2. You want to try investing internationally? That’s a great decision. Make a list of all the markets you think hold potential to give you great profits and then do some serious research on the stability of those markets. Review the rules and regulations prevailing in the market. What kind of protection is offered to the investors? How secured are they from fraudulent activities?

3. Proper investing can lead to amazing diversification in the investors portfolio. Investor also gets the chance to consider the alternatives available with his home companies that can fetch foreign exposure.

4. Like said earlier that just investing is one of the major activities now a days it does not it a stable business. There are some deadly risks involved in international investing as well. Remember once your money is gone in the international market rare are the chances that you can retreat it again. First review all the investing opportunities prevailing in your country if there are none then move overseas.

These are some of the tips that can give you head start on all kinds of international investing programs and decisions.

How International Investing Can Be Good For Your Business

Are you tired of the sinking economy of US which is not giving you any profits in the stock market anymore? Well then it is time to accept the truth and that if US is sinking it does not mean that the rest of the world is drowning too. You can always expand your network and think of international investment business.

Many people when they hear about international investment business back out without giving it a try because they firmly believe it is very difficult. Initially you will find it both tough and challenging but once you get the hang of it, it will be really easy for you. Especially if you already deal in stocks then international investing should not be a big deal for you.

Whatever the case may be, it is very essential that you enter into international investing business fully prepared. By fully prepared I mean you should have a strategy with you which is strong enough to keep you safe from all kinds of risks and losses. Mentioned below are some tips which will help you greatly:

You should be well aware of all the risks prevailing in the international market. As the entire world is in economic crisis you should be careful about who you choose and why you choose. Many investors have failed to prosper in the field of foreign investing because they took the wrong decisions. For investing the countries that give good response are India, China and Europe.

Secondly, make sure that the country you choose to invest has a currency which operates against the currency of your country. The currency should act as favorable asset for your investments. Avoid investing in currencies who appreciate and depreciate with in a very short span of time.

Thirdly and most importantly you should decide as to what kind of business you want to invest in. There are several businesses that do well no matter how bad the rest of the economy is. These businesses are usually directly or indirectly associated with food, shelter and clothes. Even the poorest would want clothes to wear, food to eat and shelter to sleep in. These are just some examples of some of the businesses where you can invest without any worry.

Fourthly is the environment of the country where you are investing. It should be healthy and should promise growth. Never invest in the countries that are politically not stable.