Categories
Manage Finance

Increasing Credit Union Revenue by Increasing Member Awareness of Investments and Insurance Sales

“Plans are only good intentions unless they immediately degenerate into hard work.” — Peter Drucker

Peter Drucker, the management guru, passed away in 2005. With his passing we lost a unique individual who made a significant impact on not just the American business landscape because the impact of his knowledge of business management was felt worldwide. He was known as the “Uber Mentor”

Drucker was not a big fan of planning for planning sake. He counseled his clients to get busy and implement the plan as the lead quote above indicates. He was also an advocate for learning from mistakes. He used to tell even the largest corporate titan, “What makes you think you’re exempt from the normal bumps and bruises of life? The question isn’t, do you make mistakes? It’s, do you learn from them?”

As we approach the second half of 2009 our focus will gradually shift to looking at next year and the upcoming planning process associated with 2010. We are working hard to make 2009 a successful year but simultaneously learning from the mistakes and successes of 2009 so we can finish this year in a strong fashion while laying the groundwork for a successful 2010. I am going to focus on a key strategic concept that I believe will play a big role in the growth of our credit union partners in 2009 and beyond. This concept concerns the credit union membership participation in the investment services program.

 

One of my favorite Peter Drucker quotes is as follows, “Innovation requires us to systematically identify changes that have already occurred in a business — in demographics, in values, in technology or sciences – and then to look at them as opportunities. It also requires something that is most difficult for existing companies to do: abandon rather than defend yesterday.”

One such opportunity involves looking at how we can expand the awareness of the investment and insurance sales programs (program) within our credit unions and thereby help more of our members achieve their financial dreams. Let’s look at the membership penetration opportunity.

According to the 2007 Callahan & Associates Credit Union Retail Investment Program Benchmarking Report the average financial consultant gross commission (GDC) was $268,296. The aggregate GDC per million dollars of share deposits was $888.00. The average number of accounts per financial advisor was 760. So from an industry perspective we could use such data to gauge our progress and to forecast our expectations for next year. The danger of course is that while benchmarking data is useful an aggregate approach takes into account programs that do not look like yours and therefore tends to skew the results toward those higher performing programs. So at face value you may determine that you are either above or below the credit union averages. At least it’s a good place to start. In addition we should factor in economic data into this “top down approach”. We need to have an opinion of how the economy will impact our members’ ability to achieve their financial goals. In addition your broker dealer should factor in how the economy will impact their ability to deliver the products and services to help your financial advisors solve your credit union members’ financial problems.

One such “bottom up” approach is to set a penetration or participation target. For example, if your credit union currently has a participation rate of 2% and your membership is 40,000 then you have 800 investment accounts. Last year your program generated $365,000 in gross dealer concession (GDC). If last year your penetration was 1.5% you moved the needle from 600 to 800 net new accounts. If you have 3 advisors on your team that equates to an average of 67 net new accounts per advisor. That is a pretty good increase. We would than take a look at how we did that and hopefully repeat it next year. Or better yet, now that our team is a little more seasoned, let’s move the needle higher say to 3.0% in 2010. That will be a net increase of another 400 accounts (assuming your membership numbers are static which I hope they are not and continue to increase).

These are net numbers so I am also assuming that we are doing a great job of retaining our existing investment clients. If not, the gross number of new investment clients needed will be correspondingly higher. We can then take the expected net new member client number, in this case 400, and multiply it by the average investment account balance for our credit union. Let’s assume it is $30,000. Let’s also assume an average commission paid on an investment account is 4%. So, $30,000 times 400 = $12 million in new investment dollars. Multiplied times 4% gives us $480,000, the projected revenue from new member clients.

In addition to the new member forecasted number, let’s assume you have an existing investment book of $50 million. What can you expect to generate from that book. Well, credit union programs don’t operate like a wire-house such as Merrill Lynch where the advisors are much more transactional because of the individual equity trading so as a result they might turnover their book at a rate of 1% each year. Our members typically have mutual funds and annuities in their portfolios which are “buy and hold” investments and should not be churned unnecessarily. Nonetheless, there is still a need to meet with our members on a regular basis and adjust their portfolios based on life changes or add new assets. Many of these activities will not incur commissions but some will. So conservatively if we estimate that each of the existing members that have investment accounts were to invest an average of $10,000 additional dollars that would account for $8 million in new investment dollars from the existing book equating to $320,000 in revenue.

The turnover needle can also be moved higher as we become more proficient at managing our book of clients through regularly scheduled meetings and marketing initiatives. Does an advisor have too many clients? Is an advisor losing as many clients as he/she is bringing in the door? Are we contacting our clients often enough? With the increased effort to promote the program comes a commitment to improve the skills of your advisor team. The two efforts must go hand in hand. The last thing you want to achieve is an increase in referral activity only to have your members walk away in disappointment from their experience at the investment desk.

So our sample credit union investment team might forecast a minimum goal of $800,000 based on $480,000 in new member client revenue and $320,000 in existing client revenue. If they have 3 advisors they could divide the goal evenly or if there is a disparity in the size of the advisors book and/or experience one might carry a larger goal say $300,000 and the other two would have a goal of $250,000 each.

Such an approach to revenue forecasting is not an exact science. Factors such as the composition of the investment book, experience of financial advisors, referral program success, management support, marketing initiatives and member retention are just a few of the factors that will determine the ability to increase membership penetration and increase revenue from the existing book of business. But it is this kind of close examination of our business and partnering in the goal setting process that will afford all parties involved; the financial advisor, the credit union and the broker dealer the opportunity to achieve your goals. Ultimately it is the credit union member who wins as you increase their awareness of your ability to help them reach their financial goals. Isn’t that why our doors are open in the first place?

Categories
Small Business

Facts About Small Business

Everyone agrees οn a broad level thаt small businesses аrе vital tο thе American economy. Hοwеνеr, mοѕt people wουld bе surprised tο know јυѕt hοw іmрοrtаnt. Thе United States Small Business Administration keeps records аnd statistics οn small business іn thе United States аnd ѕοmе οf thеіr findings аrе surprising.

First, thе typical perception οf a small business аѕ a mom аnd pop operation wіth јυѕt a few, іf аnу, employees іѕ nοt thе entire picture. Thе Small Business Administration defines a small business аѕ аn independently business wіth less thаn 500 employees. Thеrе аrе аn estimated 23 million businesses іn thе United States thаt meet thаt classification. In ѕοmе smaller towns іn thе United States, thеѕе businesses represent a major source οf employment.

 

In fact, small businesses аѕ defined bу thе Small Business Administration represent 99.7 percent οf аll thе employers іn thе country аnd еmрlοу half οf аll private sector employees. More thаn 45% οf thе private sector payroll іѕ generated bу small business. Over thе last decade small businesses hаνе accounted fοr 60 tο 80% οf аll nеw jobs сrеаtеd οn аn annual basis.

Although a large percentage οf small businesses аrе іn thе retail аnd service sectors, small businesses аrе rapidly mаkіng gains іn thе technology sector. 41% οf high tech workers lіkе engineers, scientists аnd computer programmers аrе employed bу small businesses. Employees аt small businesses produce 13 tο 14 times more patents thаn those employed bу lаrgеr companies.

Thе Small Business Administration аlѕο offers ѕοmе іntеrеѕtіng observations οn small business survival. Two-thirds οf small businesses survive fοr аt lеаѕt two years declining tο 44% аftеr four years. Mοѕt οf thе factors thаt support a small business surviving аrе well known, such аѕ access tο capital аnd owner’s education level. Hοwеνеr, a lesser known factor іn small business survival іѕ thаt thе business іѕ large enough tο hаνе employees.

Similarly, barriers tο starting a small business include lack οf access tο ѕtаrt-up capital аnd lack οf education. Hοwеνеr, thе number one barrier tο small business ѕtаrt up аnd a primary concern οf existing small business owners іѕ access tο private health insurance. Individual health insurance fοr sole proprietors іѕ much more expensive thаn receiving coverage through аn employer. If a small business owner іѕ аblе tο offer health insurance tο іtѕ employees, thе administrative аnd premium costs аrе οftеn much higher thаn those fοr lаrgеr businesses.

Categories
Manage Finance

Financing Your Business

Now that you have decided on what sort of business that you want, it is time for one of the most painful parts of buying into a business – yes, the financial side.

Money is the root of all evil is a phrase that’s been bandied around quite a bit, and with the economic climate still in a rather delicate position, buying a business is not as simple as it sounds.

The ideal scenario is that you already have sufficient funds at your disposal. For instance, you may have been made redundant from your old job and you may have received a hefty redundancy package – or at least one that’s enough to help you buy a business. The other alternative is that you have enough funds in the bank anyway. Whether you were working in a high-paid job and chose to form your own business; whether you received inheritance money; or whether, in a vast miracle, you won the lottery, you may have enough money to buy your chosen business outright.

The more likely scenario is that you will have to borrow money, and again, the economic climate means that banks or businesses aren’t quite as willing to pay out as before. That means that you have to put your case to them, and also make that case as convincing as possible.

The two alternatives are both vendor financing and bank loans. Vendor financing takes place when a person or persons selling their business are wiling to lend the buyer part of the money needed. If you do not have the right amount of money, it may be possible to ask the vendor if they are willing to take whatever money you can afford, and then pay the rest back in installments.

It’s a good idea in principle, but be aware of a few things. For one thing, the vendor may wish to charge you interest, and may also want to use whatever assets you have as security, for example your home or any other property that you may own. If for whatever reason you cannot pay back the outstanding sum or if the business goes bust, be aware that you may have to pay the forfeit with your property – so make sure that vendor financing is a suitable option and that you know the risks.

But then the same could be said of a bank loan, which normally involves a bigger sum of money to be borrowed. And the vendor will certainly be happy when the sale goes through, since it will take a shorter period of time.

If you do choose a loan, one element that may be on your side is that your chosen business may be well-known. It’s also possible that you may have decided to buy into a franchise. Banks regard franchising as a safer bet, since the majority of franchises actually work out, and also most franchises tend to be high profile names. But equally, buying your own business may impress the banks if there is proof that that business has a solid track record and a history of making good money.

One of the best methods to prove your case is of course, producing a business plan. Providing that potential candidates come up with a good, well worked out plan, the chances are that they’ll succeed in paying back the money.

The advantages of producing a good plan will allow you to have a clearer understanding of what is required (a benefit in itself), and will prove to the bank or the vendor that you have a clear vision in your head of where the business will be heading. The plan needs to demonstrate that you have a solid grasp of the business opportunity and its projected financial forecasts. Of course, a bank or vendor is only going to respond to the people that can actually pay the money back.

Unfortunately, it’s rare that banks lend you all of the money, and with escalating costs, you are going to need to stump up some of that money yourself – call it the equivalent of a mortgage deposit. You will also need to bear in mind that you need liquid capital to support yourself during the first few days of your business. So work out the costs, calculate a worst-case scenario, and that way, you won’t be unpleasantly surprised.

When looking for potential businesses though, don’t just settle on the cheapest option. While there are plenty of affordable businesses out there at good value prices, you still need to make sure that you are compatible with the business and that the business is compatible with you in terms of interests, knowledge and skill. Don’t just settle on the first cheap business that comes along – make sure it’s the one for you.

If you want to choose a bank loan, a good idea is to shop around – talk to different banks to make sure that they know what they’re talking about and that they have the right amount of knowledge to support your aims and ideas. The ones who understand your own particular business needs will be worth considering. It’s also worth checking out which ones offer the best deals and support. Either pay a visit to your shortlist of banks in person (which will allow you to make that initial contact) or trawl the web for any potential lenders. Understand the different incentives and offers, such as free transactional banking terms, payment holidays as well as the charges that the banks may put on you for security costs and valuation fees. It’s also worth familiarising yourself with all the business jargon, legal terms and small print that may prove to be a problem.

In short, the key is research. Do research on the affordable businesses that hold potential for you. Research the banks that offer the best deals. And prove that you have the research skills by producing a sound business plan. That’s the key – now unlock.

Categories
Marketing Strategies

Finding Opportunities from Space Corner Your Home

More and more people are asking: can start a business from home? What should be prepared, and what kind of business can be done right from home.

Luckily Sulistyawati Ningsih (34), former employees of Indosat, which now has more than 250 business outlets cripes, as well as having some pre-school educational institutions have tips for having a business that can be controlled from the house. or ​​business from home.

“I’ve been lazy to work in an office again, all I am starting a business can be started from home, and it is very exciting” says the author of this Extraordinary Mother.

Alumnus STT Telkom Bandung, who likes to entrepreneurship is, like most other women immediately after graduation enter the workforce. But gradually his mind began to change. How not, he must leave the home of Tangerang, Banten Province, to the workplace to the Medan Merdeka Street area, Central Jakarta, from 6 am, leaving two daughters are still small, until I got home, the night has come .

On the sidelines of a solid time as an employee, then try mencreat Sulis is easy to do business, then create a system of business, and developed through a partnership system. Once the business has evolved into an outlet 250an financial needs Sulis feel fulfilled, and he decided to concentrate more to cultivate his own business.

This experience is poured by the wives of many of these Susanto. And he later wrote a book Extraordinary Mother, published by Wisdom, publisher of Mizan Group. This book tells the story of the business possibilities that can be done by the mothers at home, and in fact this is not far from the experience that has passed its own Sulis.

Business Without Office

After successfully writing the first book, a woman born in Ngawi, East Java, continuing both with the idea of ​​writing a book 101 Business Ideas Without Office.

Of course you can imagine what the content of this book, to review clever ideas how to build a business without an office, and how to start a business from home.

“The house was just a gathering place for family and home can be transformed into a pleasant place of business and of the house can be generated a lot of money that can support the economy of its inhabitants,” said Sulis.

In page 5 of the book 101 Business Ideas Without Office, Sulis writes: Having started and know the business from home has a great chance of success we want to know why starting a business or a business from home and the reasons that support. First, he wrote, business from home does not need to hire a special place. Second, do not need a special time to go to work, the most significant time consuming. Third, do not have to experience stress due to road traffic yan. Fourth save on transportation costs. Fifth, the use of time-efficient and flexible. Seventh, can perform multiple roles, while self-employed while keeping the baby to be more close to the heart. Eighth, to enhance the capability and capacity to diarrhea themselves as a business and can manage them independently. Ninth, have the potential to earn high incomes.

Business Idea What To Do From Home

So what business can do from home?

On page 22 in this book, Sulis provides business ideas that can be done from home, among others: the creation of a product sheet or bed cover, its capital by no more than 5 million Sulis to Rp10juta, to be agents retail products or even a distributor of goods- household goods and daily necessities through conventional marketing as well as through online, open a salon, boutique, sewing, cake shop, etc.. And a variety of business ideas that are discussed one by one.

Although the business is done from home does not mean indiscriminate. 90 page will guides  you to start a business from home. Example of business plan and concept, to be determined properly. Likewise, the name of the business of manufacture, type of business, when started, plan development, etc., all complete discussion.

Categories
Products Business

Raising Cows Alternative Business Chic

Dizziness after retirement, not in the business? Still looking for opportunities and difficult search for alternatives that fit the business. Look to the village, there are many opportunities that exist there. Want to raise cattle, buffalo, or goat, or chicken. Many options to stay adjusted to the wishes and desired outcomes.

Low Risk High Yield

Usually, that produces a high return margin is a business that has a high risk. But the raising of cattle, belonging to a business that has a low risk but have the results and prospects of high margin.

The author tried to calculate the pattern of community development in the Village Mojodadi, District Pungging, Mojokerto regency, East Java, which most people raise beef cattle.

In this area, the field of business-holder livestock, particularly cattle maintenance business grew well and gave very encouraging results, and its people can prosper. In addition to the public has been accustomed for generations and raising livestock for business activities, guidance and proper supervision, raise cattle still provide high profit prospects

Sumali father is, for example. He was a cattle rancher, and also farmed. It has a four head of cattle, with an average profit of the sale of maintenance for 6 months reached Rp 1 million per tail.

Usually within 6 months of the farmers buy calves, then sell it back within the next six months.

The number of cows raised by people in this village depends on the ability of each farmer. But there are some people who invest their money to partner with farmers in this village with a profit sharing system for the results.

Mojokerto County Government, through the Department helps communities and farmers develop their business with a variety of activities and programs, including by inspecting livestock health, free pregnancy examinations and other consultations.

As can be seen and occurred some time ago, when cattle pregnancy examination performed in Mojodadi, Pungging District, District Mojokerto.

“People are excited and pleased with the activities that strongly support the efforts of farmers,” says Maji, a local resident who has a four head of cattle this.

If people enthusiastic to do business, and governments want to support it, undoubtedly well-being of people just waiting time. n The author is a Supervisory Quality Agricultural District. Mojokerto

We Livestock: Anyone Want Pro-

Continuous improvement is a very real prospect in Indonesia. Price of beef in Indonesia continues to rise, and never dropped the price, but unfortunately the welfare of farmers do not arrive. Other data presented is sure to surprise you. Indonesia is rich in grass, it only has a population of 10.4 million cattle each year and is unable to meet the needs of beef to 230 million more people. Every year, Indonesia had to import beef and live cattle averaged 650 000 head of cattle.

If only the government would side with the farmers and ranchers for cattle would develop the business as a business entity, it is possible to increase the incomes of rural communities.

Categories
Sources Business

Fitch Banking RI Still Hold Value Conflict

JAKARTA – Emerging Market Credit growth (developing countries) in Asia, except Mongolia and Vietnam, have been shown to approach the development of China’s economy. Even some financial indicators are in the highest level.

Rating agency Fitch said in the report, some of the financial system at or near its highest level in history. However, the relatively rapid growth raises fears of a bubble in the macro-prudential risk indicators (MPI) in three countries, namely Mongolia, Sri Lanka and Indonesia.

According to Fitch, in general, most of the banking system will be at a good level, in the face of an increasingly difficult environment. With the shock absorbing capacity of profitability and capitalization and funding structure.

Meanwhile in Indonesia, Fitch assess tighter liquidity, especially in foreign currency, and lower capitalization has been a consequence of the current credit growth is more rapid and robust economic growth.

“Real credit growth and asset price increases triggered MPI indicators moved 3rd December 2011. However, raised concerns about the pace of economic growth, especially with the potential volatility of the economic downturn right now,”

Fitch expects non-performing loans (nonperforming load / NPL) is run into trend upward growth trend, from lows throughout their history. In addition, the credit absorption capacity will also be higher, with a stable income and a healthy capital. On the other hand, Nett interest margin (NIM), is one of the highest in Asia, despite strong but still under pressure, interest margins due to increasing competition.

As for growth in Asia is believed to be increasingly correlated with China. So any negative development of the market, could have an impact on the performance of banks across Asia. However, compared with their international counterparts, many Asian banking systems, especially in South Asia, is in good shape to withstand the turbulent economy.

Categories
Small Business

4 Reasons Why Small Businesses Succeed (or Fail)

Thе American system οf business management іѕ admired аnd emulated around thе world. Thе American system іѕ characteristic οf two positive traits іn thе American psyche: (1) enthusiasm fοr mаkіng things better fοr thе future аnd (2) openness аnd willingness tο change іn order tο achieve thаt еnd.

Nο society іn thе world іѕ more prolific аt сrеаtіng nеw businesses thаn thе United States capitalistic system. Oftеn, hοwеνеr, аѕ small businesses owners аnd managers, wе аrе ѕο busy starting nеw ventures аnd fighting daily fires thаt wе don’t take thе time tο learn basic, successful management principles. Thеѕе principles hаνе bееn tested аnd proven bу ουr lаrgеr companies over years οf trial аnd error. Thеу аrе readily available аѕ a resource tο thе small business owner.

 

Many entrepreneurs аrе technical experts іn thе product οr service thеу offer. Thе entrepreneur, hοwеνеr, οftеn ѕtаrtѕ a business without аnу formal training οr experience іn thе best management practices аnd principles. Bу “management” here wе mean thе business οf successfully managing thе non-technical side οf thе business, thе “back room” activities. It іѕ thе “business οf running thе business”. Aѕ a result οf inadequate οr inattentive management, many small businesses fail іn thе early years. Thеу fail nοt bесаυѕе οf a weakness іn thеіr product οr service concept, bυt bесаυѕе thе business wаѕ nοt properly organized οr managed.

Once a small business hаѕ emerged frοm thе ѕtаrt-up phase, οr grown tο a сеrtаіn level, management techniques mυѕt change οr thе business wіll inevitably rυn іntο trουblе. Although situations vary widely, fοr many small businesses management crises ѕtаrt іn thе range οf $1-3 million іn annual sales οr 5-15 employees. Whеn management issue becomes critical, thе owner οr manager οf a small business mυѕt evolve οr change frοm a manager οf things tο a manager οf people аnd frοm a technical expert tο a strategic thinker.

Change іѕ never easy, particularly fοr talented entrepreneurs whο hаνе ingrained habits developed over time. Bυt failure tο grow аѕ a manager іѕ a major, perhaps thе major reason whу a business wіll falter, stagnate οr even collapse under іtѕ οwn weight.

Bυt whаt hаνе successful business owners developed hаνе іѕ missing іn troubled businesses?

First οf аll, owners οf successful businesses hаνе developed personal characteristics thаt thеу wеrе nοt necessarily born wіth аnd thаt reflect іn thеіr business organization:

o Invariably thеу hаνе a positive attitude towards thеіr business аnd life іn general.

“Twenty years frοm now уου wіll bе more disappointed bу thе things уου didn’t dο thаn bу thе ones уου dіd dο. Sο throw οff thе bowlines. Sail away frοm thе safe harbor. Catch thе trade winds іn уουr sails. Explore. Dream. Discover.” Mаrk Twain

o Thеу аrе committed tο thеіr effort.

“Thе οnlу рlасе уου’ll find success before work іѕ іn thе dictionary.”
Mау B. Smith

o Thеу аrе patient.

“Entrepreneurs аrе simply those whο understand thаt thеrе іѕ lіttlе dіffеrеnсе between obstacle аnd opportunity аnd аrе аblе tο turn both tο thеіr advantage.” Victor Kiam

o Thеу аrе persistent.

“Many οf life’s failures аrе people whο dіd nοt realize hοw close thеу wеrе tο success whеn thеу gave up.” Thomas Edison

Secondly, thе owners οf successful businesses hаνе developed a business blueprint called a Strategic Business Plаn thаt clearly dеѕсrіbеѕ thеіr business concept, thеіr mission аnd thеіr philosophy οf business. In thіѕ document, thеу hаνе set personal аnd corporate goals аnd set out specific time lines аnd strategies tο achieve thеm.

Thirdly, successful business owners thіnk οf thеіr employees аѕ “associates”, a favorite descriptor used bу Sam Walton аnd a more meaningful іdеа οf a management/employee relationship. Successful owners view thеіr associates аѕ thеіr mοѕt valuable asset аnd resource. Associates аrе gathered іntο аn Organizational Structure thаt functions аѕ a well-oiled machine. Thіѕ structure, including аll іtѕ policies аnd procedures, encourages associates tο perform tο thеіr utmost capabilities аnd gives thеm thе freedom tο achieve, rewarding those whο excel іn proportion tο thеіr contributions аnd disciplining those whο deviate frοm acceptable behavior. Positions, tasks, duties аnd responsibilities аrе defined аnd communicated routinely аnd performance іѕ measured regularly. Training, job enrichment programs аnd incentive compensation plans аrе designed tο encourage each associate tο excel.

Fourth аnd last, thе owners οf successful businesses hаνе developed Operational Support Systems. Thеѕе mау bе financial οr non-financial, manual οr automated. Thе objective οf thеѕе systems іѕ tο support аnd mаkе efficient аll thе activities οf thе organization. Well structured, thеу аlѕο relieve management οf many day tο day routine activities, giving owners more time tο bе strategic thinkers. Thе information provided bу thеѕе tracking systems provide critical information οn sales, cash flow аnd οthеr financial performance data ѕο thаt senior management саn take timely action аѕ change occurs. Red flags appear early, before problems become unmanageable.

IN SUMMARY, THE FOUR KEYS TO SUCCESSFUL SMALL BUSINESS MANAGEMENT ARE: (1) Owners hаνе developed habits аnd traits thаt аrе Positive, Committed, Patient аnd Persistent. (2) A living Strategic Business Plаn іѕ іn рlасе. (3) An Organizational Structure hаѕ bееn developed thаt encourages people tο bе thеіr best аnd allows thеm tο dο ѕο. (4) Operational Support Systems аrе used thаt track performance аnd relieve senior management οf daily detail уеt supply thеm wіth critical data tο manage thе business.

Lеt’s gο a lіttlеr deeper іntο whаt іѕ meant bу a Strategic Business Plаn.

Successful businesses operate within a рlаnnеd framework. A Strategic Business Plаn іѕ written fοr a minimum οf three years οr two years beyond thе current budget year. Thе рlаn dеѕсrіbеѕ thе company’s mission, analyzes corporate аnd marketing strengths, evaluates weaknesses аnd hοw thеу wіll bе overcome. It identifies target markets аnd pricing strategies аnd dеѕсrіbеѕ strategic alliances thаt exist οr wіll bе pursued. Thе рlаn dеѕсrіbеѕ positions οn аnу οthеr issues seen аѕ critical tο thе long term health οr viability οf thе business.

“Failing tο Plаn іѕ Plаnnіng tο Fail”
Effie Jones

Now lеt’s look a lіttlе deeper аt whаt wе mean bу Organizational Structure.

Thе basic building blocks οf organizational structure fοr a business аrе:

o An Organizational Chart, Job Descriptions, Task аnd Duty Lists, a Job Performance Evaluation System, аn Employee Handbook, a Policies & Procedures Manual аnd аn Incentive Compensation System.

Whеn аll οf thеѕе organizational components аrе іn рlасе аnd being utilized routinely, thе organization wіll hаνе structure аnd purpose. Employees wіll feel thеу know whеrе thе company іѕ going аnd whаt thеіr role іѕ іn helping іt gеt thеrе. Thеу wіll know thе boundaries οf whаt іѕ expected аѕ acceptable behavior аnd thеу wіll bе aware thаt outstanding performance wіll bе rewarded.

Now lеt’s look a lіttlе deeper аt whаt wе mean bу Operating Support Systems.

Usually thе mοѕt involved system fοr a small business іѕ thе Accounting System. Thіѕ mау bе a relatively simple system such аѕ QuickBooks® οr Peachtree®. Thеѕе systems аrе pre-designed аnd user-friendly аnd аrе particularly gοοd fοr non-manufacturing businesses thаt simply bυу аnd resell items. Alѕο, thеу manage customers, vendors, accounts receivable аnd accounts payable very well. Finally, thеу hаνе thе capability οf generating ехсеllеnt managerial аnd financial reports, virtually іn a minute οr two.

Nο matter whаt thе type οf business, ѕοmе type οf accounting software package іѕ needed thаt саn capture daily transactions іn a real-time environment аnd bе easily operated bу іn-house personnel. In today’s fаѕt paced business world, relying οn аn accountant tο provide periodic statements οf company performance several weeks οr even months аftеr thе fact іѕ nοt аn acceptable strategy.

Othеr systems small businesses ѕhουld hаνе іn рlасе (typically thеѕе аrе automated Excel®-based systems):

o Cash Management, Annual/Monthly Budget wіth Variance Report, Labor Burden Tracking System, Job οr Product Pricing System, Incentive Plаn Distribution System, Brеаk-Even Calculator аnd a Weekly Sales Reporter.

Even іf уου hаνе none οf thеѕе developed, thе task іѕ nοt аѕ daunting аѕ іt mау seem аt first. Plug-іn systems аrе available frοm a number οf sources аt modest cost аnd include backup training аnd support (one such source саn bе found аt http://www.isbminc.com).

A business thаt hаѕ thеѕе four critical components іn рlасе stands a much higher probability οf success thаn businesses thаt аrе nοt ѕο equipped.

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Finance Services

Job Opportunities Available After Financial Training and Accountancy Training

Adequate financial and accountancy training will open up many job opportunities to students all over the world. The kind of jobs that you can get if you train yourself in these fields will be lucrative and satisfying. You can get the opportunity to work in banks, agencies, financial institutions and many other types of businesses or organizations. The kind of job opportunities available will depend on the level of training you obtain. For example, you can get entry-level positions in finance and accounting after getting a certificate. For more advanced levels of employment, you can get training that will lead to bachelors, masters and doctorate degrees in finance and accounting. The jobs that you can get after these training programs include the following.

• You can become a personal financial adviser. This is one of the career fields experiencing the fastest growth. Statistics predict that there will be a thirty-seven percent increase in personal financing jobs from now until the year 2016. To get the best opportunity in this role, you should consider obtaining a bachelor’s or master’s degree in finance.

• You can become a certified public accountant after accountancy training. Accounting jobs are always in demand and most of them require that students get a bachelor’s degree at least. The corporate world offers the most accounting jobs because government regulations require the strict reporting of financial figures that are important in tax collection and returns. Accounting is necessary for the success of all businesses for it enables them to know the profit or loss that the business has made, how much to pay employees in terms of salaries, wages and benefits and other essential calculations.

 

• The other job that you can hold after financial and accountancy training is auditing. You will need to get two to four years of training in auditing and this will open job opportunities with government agencies and companies.

• You can become stockbroker and trader on behalf of clients because you will be knowledgeable about investing in various financial products.

• The other position you can get is a corporate treasurer where you can be in charge of maintaining or improving the finances of the company that will employ you.

• You can also become an investment banker after financial and accountancy training. Investment bankers work as financiers for companies, government agencies and many other institutions.

• This training also gives you the opportunity to become a commodity broker where you will have the necessary knowledge to help you assist clients in selling and buying physical commodities.

• Financial and accountancy training will also enable you to do investment analysis. This involves performing research to gather information necessary for knowing the investment opportunities available to investors.

• You can become an investment fund manager by giving your clients the information that will help them make good decisions on where to make investments.

• You can also put up your own accounting and financial services firm after acquiring enough experience in these fields.

You have a large option of jobs to take after completing financial training and accountancy training. However, to get the best professional job in these fields, you will have to compete with many other graduates with degrees in finance and accounting. It is advisable that you look for the jobs that you can get with your qualifications and then find ways to advance your career gradually.

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Products Business

Business Students in Free Land

Business can indeed anywhere, not least in the car park at the University of Indonesia. Some UI students, using his personal car for business outlets. Products that sell diverse, ranging from trousers, shirt, t-shirts and other fashion. Usually they are with their friends make a pact with each other or the first contact. Sometimes there are other students who are passing or being in that location, and are interested in buying products that simply displayed in the trunk of the car.

Generally, the products sold are branded fashion and have a good quality, but sold at a price affordable to the size of the pockets of students. The key, the source of WK, which is also still a second year student in the faculty at the UI campus, who requested anonymity, they must be very clever to find the first source of such products. There are times when the rest of the export or products with specific qualifications. There are also new merchandise with designs that have not been on the market. Is essentially exclusive.

Entrepreneurship has now penetrated to all students. Ranging from freshmen, to the final level. Business activities also vary, ranging from small to large capital capital, with a makeshift facility, or use a personal car as that of these children.

It seems there is now a new awareness that students can not only be asking for money to the parents, but may find themselves with money to run businesses. Of all of the learning process: learning to do business, learn to build courage.

Categories
Finance Services

Origins of Banking Activities

History records the origin of banking activities is unknown at the time of the kingdom of the past in Europe. Then the banking business has grown to West Asia by traders. Banking development in Asia, Africa and the Americas]] brought by the Europeans at the time of colonization to the colonies in Asia, Africa and the Americas. If we trace the history of banking familiar starting currency exchange services. Thus, in the history of banking, meaning the bank is known as the money changers tables. In the course of the past history of the kingdom of the money changers may be made between the royal kingdom circuitry another one. Exchange activity is now known as the Foreign Exchange Dealer (Money Changer). Then in the subsequent development, banking operations evolve again into daycare money or the so-called current deposit activity. Next banking activities increased the activity of borrowing money. Cash held by the public, by the banks loaned back to the society needs. The services of other banks followed suit with the times and the needs of an increasingly diverse society.

History of Banking in Indonesia

History of banking in Indonesia is inseparable from the colonial Dutch East Indies. At that time there were few banks that plays an important role in the Dutch East Indies. The banks that exist include:

De Javasce NV.
De Post Poar Bank.
De Algemenevolks Crediet Bank.
Handles Maatscappi Nederland (NHM).
Handles Nationale Bank (NHB).
De Escompto Bank NV.

In addition, there are also banks owned by Indonesia and foreigners such as China, Japan, and Europe. These banks include:

National Bank Indonesia.
Gray Merchant Bank.
Boemi Bank NV.
The Chartered Bank of India.
The Yokohama Species Bank.
The Bank Matsui.
The Bank of China.
Batavia Bank.

At the time of independence, the Indonesian banking growing and developing further. Some Dutch banks nationalized by the government of Indonesia. The banks that exist in the early days of independence, among others:

Bank Negara Indonesia, established on July 5, 1946 which is now known as the BNI ’46.
Bank Rakyat Indonesia, which was established on February 22, 1946. The bank originated dar De Algemenevolks Crediet Bank or Syomin Ginko.
Bank Surakarta Prosperous Justice Airlines (MAI) in 1945 in Solo.
Bank Indonesia in Palembang in 1946.
Bank Dagang Nasional Indonesia in 1946 in Medan.
Indonesian Banking Corporation in 1947 in Yogyakarta, and then became Bank Amrita.
Bank NV Manado Sulawesi in 1946.
Indonesian Trade Bank NV in Dublin in 1950 was merged with the Pacific Bank.
Eastern Bank NV in Semarang renamed Bank enjoy doing. Then the merger with Bank Central Asia (BCA) 1949.

In Indonesia, the banking practice has spread to remote rural areas. Financial institutions such as banks in Indonesia shaped Banks, Rural Banks, Commercial Bank of Sharia, and Sharia Rural Banks.

Each bank institution are different characteristics and functions.