You can not claim to have a business when you have an incorrect view of essential facets that are required for businesses.
Reporting - Management decisions in companies are totally reliant on information generated within the business which is usually sent out in reports or newsletters.
When inaccurate information is presented it leaves leaders to make wrong decisions which could derail the growth of the business.
I have heard of companies where a profit was reported, bonuses were given until a closer look showed that the figured had been overstated.
Bonuses or other excessive expenditure would have been averted if proper due diligence was done by those preparing the information.
Revenue - Every business exists to create revenue.
Whatever capital is invested by the owners or shareholders; the business needs to quickly show signs of financial independence as less and less through proper revenue generation, savings and investments.
Every process and procedure in a business exists to increase the revenue base of a business.
When there is no revenue being generated, it is better to reconsider the business focus and ensure there is return on every investment the owners made.
Reputation - Your reputation as a leader in a business is important.
A reputation is created out of the lifestyle and value system you chose to live by.
If you are always late for work, always breaking every procedure set in the company, you will be known for that.
That becomes your label; "The leader who is always late".
Reputation for a business is also important.
This is generated by the reputations that each of the workers has.
What is your business known for.
Everyone wants to be regarded as a reliable, resourceful and quality driven organization with integrity.
However, there is difference between what you desire to be known for and what you go out and do (which in essence becomes your real reputation).
Results - This is the same as performance.
This is linked to revenue.
A company must produce results in order to meet the needs and demands of all the stakeholders around.
The employees need to be paid but this can only happen when results are produced.
No company desires to be a charitable organization out of people's lack of productivity.
Results can be seen in the profits being made, quality of reports being made, efficiency in production line, the safety standards, the employee retention / turnover, the volumes of products being made, the quality standards adhered to and so on.
You are not employed to gain a salary, you raise money for your salary through your results.
Reviews - This is when leaders revisit and re look at what they have in order to make it better or make other adjustments necessary.
A review is also important in such instances as when an employee is hired, several months later, there must be a process to revisit what is expected of the employee against what they have done.
Employees who do well during probation normally get good ratings and reviews at the end of probation.
Salary reviews are done in companies periodically in order to match the demand of the changing economic climate prevalent in a specific nation.
Failure to review salaries may frustrate employees such that a business loses them to the competition or to other nations.
Risk Management - The ability to manage risk is an essential element of leaders in a business.
Running a business is all about risk.
You risk losing business, being shut down for non-compliance, going insolvent after failing to meet the needs of your customers and so on.
Risks will always be there.
However this should not deter anyone seeking to venture into business from launching into business.
A swot analysis is a good tool to measure and spell out the risks that befall any organization.
Many other tools exist that which companies use to assess their risk level.
Rewards - When someone performs exceptionally, they should be rewarded.
This is recognition given to a business of an individual for good performance or working according to the set guidelines.
Rewards (whether monetary or in kind) have a motivational element where they boost the receiver's willingness and drive towards the goal.
Reporting - Management decisions in companies are totally reliant on information generated within the business which is usually sent out in reports or newsletters.
When inaccurate information is presented it leaves leaders to make wrong decisions which could derail the growth of the business.
I have heard of companies where a profit was reported, bonuses were given until a closer look showed that the figured had been overstated.
Bonuses or other excessive expenditure would have been averted if proper due diligence was done by those preparing the information.
Revenue - Every business exists to create revenue.
Whatever capital is invested by the owners or shareholders; the business needs to quickly show signs of financial independence as less and less through proper revenue generation, savings and investments.
Every process and procedure in a business exists to increase the revenue base of a business.
When there is no revenue being generated, it is better to reconsider the business focus and ensure there is return on every investment the owners made.
Reputation - Your reputation as a leader in a business is important.
A reputation is created out of the lifestyle and value system you chose to live by.
If you are always late for work, always breaking every procedure set in the company, you will be known for that.
That becomes your label; "The leader who is always late".
Reputation for a business is also important.
This is generated by the reputations that each of the workers has.
What is your business known for.
Everyone wants to be regarded as a reliable, resourceful and quality driven organization with integrity.
However, there is difference between what you desire to be known for and what you go out and do (which in essence becomes your real reputation).
Results - This is the same as performance.
This is linked to revenue.
A company must produce results in order to meet the needs and demands of all the stakeholders around.
The employees need to be paid but this can only happen when results are produced.
No company desires to be a charitable organization out of people's lack of productivity.
Results can be seen in the profits being made, quality of reports being made, efficiency in production line, the safety standards, the employee retention / turnover, the volumes of products being made, the quality standards adhered to and so on.
You are not employed to gain a salary, you raise money for your salary through your results.
Reviews - This is when leaders revisit and re look at what they have in order to make it better or make other adjustments necessary.
A review is also important in such instances as when an employee is hired, several months later, there must be a process to revisit what is expected of the employee against what they have done.
Employees who do well during probation normally get good ratings and reviews at the end of probation.
Salary reviews are done in companies periodically in order to match the demand of the changing economic climate prevalent in a specific nation.
Failure to review salaries may frustrate employees such that a business loses them to the competition or to other nations.
Risk Management - The ability to manage risk is an essential element of leaders in a business.
Running a business is all about risk.
You risk losing business, being shut down for non-compliance, going insolvent after failing to meet the needs of your customers and so on.
Risks will always be there.
However this should not deter anyone seeking to venture into business from launching into business.
A swot analysis is a good tool to measure and spell out the risks that befall any organization.
Many other tools exist that which companies use to assess their risk level.
Rewards - When someone performs exceptionally, they should be rewarded.
This is recognition given to a business of an individual for good performance or working according to the set guidelines.
Rewards (whether monetary or in kind) have a motivational element where they boost the receiver's willingness and drive towards the goal.