Financial Statement


A financial statement is a snapshot taken of your business at a given time. Usually this picture is taken at a month end. It will tell you what the business owns, what it owes, your capital and equity in the business, what the sales were, what it cost to make those sales, what the business overhead was, and how much profit (or loss) the business made.

A financial statement follows a set format, consisting following sections:

  • Notice to reader or review engagement report
  • Balance sheet
  • Statement of retained earnings (if incorporated)
  • Statement of income and expenses
  • Notes to financial statements
  • Statement of changes in financial position.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Non Price Competition


In spite of the emphasis placed on price in microeconomic theory, marketers often compete on product attributes other than price. You may have noted that price differences between products such as gasoline, men’s haircuts, candy bars, and even major products such as compact cars and private colleges are often small, if there is any price difference at all. Very rarely will you see price used as a major promotional appeal on television. Instead, marketers tend to stress product images and consumer benefits such as comfort, style, convenience, and durability.

Many organizations promote the services that accompany basic products rather than price. The idea is to make a relatively homogeneous product better by offering more service. Quite often the reason marketers emphasize non-price is because prices are so easy to match. Few competitors can match the image of a friendly, responsive, consumer-oriented company.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Personality Cults


In the absence of an agreed working culture the leaders of an organization will use their own personalities to dedicate the way relationships are handled in their own area of influence.

The relative power and influence of each member of the leadership team will determine the relative strength of their cultural influence. Whatever the relative balance, however, you can be absolutely certain that this will create confusion, waste and stress.

The result will be a cult personality with the more dominant leaders commanding more followers, resulting in a split working culture within the organization.

The effect of this can be seen in the way organizations respond differently to sales enquiries than to service enquiries.

How many times you  have been left to wonder alone in a shop because a sales assistant is suddenly needed elsewhere when they discover that you are only enquiring and not intending to buy then and there?

It is interesting to note that when individual people suffer from a split or multiple personality they are usually diagnosed as schizophrenic  and receive the benefit of medical help. When organizations suffer from a split or multiple culture, it is usually accepted as normal.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Meeting Management: The Thank You Note


The common thank you note is applicable to large and small meetings. It may be handwritten and should be as informal as your organization style will allow.

If you send thank you notes, your message will stand out in memory. You must be sincere and never, repeat, never, attempt to curry favor by using a thank you note.

Thank you notes may be sent by the group leader or any participant. If you are a participant and wish to send one, only do so if you were honestly impressed by any event. Some examples:

  1. Excellent Presentation: A high-ranking executive of your organization makes a presentation on some aspect of a problem you face. If the presentation was exceptional, send a note, thanking the executive for time spent helping your team.
  2. Clarifying Remarks: A specialist visits long enough to clear up a few technical points. If this was a real contribution to your knowledge, send a note.
  3. Outstanding Work: Someone on the team does an exceptional job. Send a note if it is deserved.

These are only a few examples. More will occur to you as you consider this technique.

The thank you note must be written. A telephone call, while nice and possibly appreciated, will not have the same impact.

The thank you note is a reminder to the thanked individual that your group exists. It will make it easier to get him or her to come back for another meeting, and on return, be in a cooperative mood.

With thank you notes, be sincere; falseness shows. Use it as an expression of earnest thanks and appreciation for a job well done

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Problem-solving at the Upper Management Level


Full step-by-step application of the process, documented on chartpad or notepad, is required most often for concrete problems whose identity can be directly observed or easily visualized. These largely are mechanical, tangible situations.

At the upper management level, however, application of the process often consists of use of the ideas of the process. This includes discussion of a situation in al l its dimensions rather than formulation of hypotheses based on experience; attention to distinctions of identity, location, timing and magnitude rather than informed speculation alone; and testing of possible causes against the facts surrounding a situation rather than immediate action directed at the cause suggested by informed speculation. Data may be recorded and notes taken, but use of the process at upper levels of management is usually observable in the character of the questioning and the nature of the investigation. We observe people using the common language of Problem Analysis to organize their information, communicate it, and put it in perspective. They are sharing information through the channels of a systematic process. They are using words that will clarify each individual’s contributions.

Busy managers are not avoiding responsibility when they tell subordinates, “I want you to solve your own problems.” They have neither the time nor the specific skills to personally guide their subordinates’ problem-solving efforts. The truth of the matter is that managers who become directly involved in problem solving are subject to criticism for failing to set priorities on their own time or to delegate appropriately—in short, for failing to manage their operations. Managers need not have all the right answers. What is required of them are the ability and willingness to ask the right questions. The kind of questioning we use in specifying, in identifying distinctions and change, and in testing possible causes lends itself well to the process of assessing the logic and the work that other people have contributed to resolving a problem.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Principals for Defining Privacy Policy


Companies wishing to enact an internal privacy policy or code should consider as a starting point the three concepts that help define information privacy: data collection, data accuracy, and data confidentiality.

Data Collection: the following principles should be adhered to:

  • Data should be collected on individuals only to accomplish a legitimate business objective.
  • Data should be adequate, relevant, and not excessive in relation to the business objective.
  • Data should be obtained in a lawful manner.
  • Individuals must give their consent before data pertaining to them can be gathered. Such consent may be implied from the individual’s actions (e.g., when they apply for credit, insurance, or employment).

Data accuracy: to ensure that misleading information will not be distributed, the following principles apply:

  • Sensitive data gathered on individuals should be verified before it is entered in database.
  • Data should be accurate and, when necessary, kept up to date.
  • The file should be made available so the individual can ensure that the data is correct.
  • If there is disagreement about the accuracy of the data, the individual’s version should be noted and included in any disclosures of the file.

Data Confidentiality: the privacy policy should ensure confidentiality as follows:

  • Computer security procedures should be implemented to provide reasonable assurance against the unauthorized disclosure of data. These procedures should include physical, technical, and administrative security measures.
  • Third parties should not be given access to data without the individual’s knowledge or permission, except as required by law.
  • Disclosures of data, other than the most routine, should be noted and maintained for as long as the data is maintained.
  • Data should not be disclosed for reasons incompatible with the business objective for which it was collected.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Master Plan


Many people assume that a formal business plan is only for big time businesses. Wrong. A business plan is for anyone who wants to give their enterprise their best possible shot. It is where you detail out all the operational, marketing, and money matters of your business. It is, in essence, a road map. With it, you will better be able to reach your goal. Without it, you run the risk of spending precious time and money traveling in circles or unwittingly wandering into danger zones.

In response to the question, what a business plan is, follow the following”

  • A business plan is written by the home-based business owner with outside help as needed.
  • It is accurate and concise as a result of careful study.
  • It explains how the business will function in the marketplace.
  • It clearly depicts its operational characteristics.
  • It details how it will be financed.
  • It outlines how it will be managed.
  • It is the management and financial “blueprint” for startup and profitable operation.
  • It serves as a prospectus for potential investors and lenders.

A study for “why” of creating it, note:

  • The process of putting the business plan together, including the thought that you put in before writing it, forces you to take the objective, critical, unemotional look at your entire business proposal.
  • The finished written plan is an operational tool, which, when properly used, will help you manage your business and work toward its success.
  • The complete business plan is a means for communicating your ideas to others and provides the basis for financing your business.

While you are to be the author of the document, you shouldn’t hesitate to get professional help when it comes to areas outside your ken, such as accounting, insurance, capital requirements, operational forecasting, and tax and legal requirements. Finally, in response to the question, “When should Business Plan be used?” note:

  • To make crucial startup decisions
  • To reassure lenders and backers
  • To measure operational progress
  • To test planning assumptions
  • As a basis for adjusting forecasts
  • To anticipate ongoing capital and cash requirements
  • As the benchmark for good operational management

If you have been doing your research and homework all along, you probably have most of the raw material for the business plan, so it won’t be such an awesome task.

Business plans differ greatly, depending on the nature and scope of the enterprise. Some elements a person in a retail sales business would need in his or her business plan may be totally irrelevant for your service business. Similarly, business plans vary in length—from five or six pages or a virtual booklet; some are written in an engaging narrative style while others take another approach—just the facts. However, while business plans may differ in style, tone, length, and components, there is some common ground. Below is a list of items that should be in almost every business plan:

  • A summary of the nature of your business and its principal activity with a detailed description of the product(s) or service(s) you will offer.
  • A statement as to the form your business will take (sole proprietorship, partnership, incorporation) and how it will be managed and operated (with information on employees or subcontractors if applicable).
  • A discussion of any extra-ordinary (and potentially problematic) matters revolving around such things as space requirements, production processes, and operating procedures.
  • A discussion of major trends in your trade or profession.
  • A discussion of your competition and the basis on which you will compete.
  • A description of your target market that might include a profile of a typical customer or client.
  • A discussion of your plans for pricing, sales terms, and distribution.
  • A discussion of how you intend to advertise and promote your products or services.
  • A detailed statement of startup and operating costs for at least the first year.
  • A discussion of how your business will be financed.
  • Profit and loss and cash flow statements for at least the first year of business.

If this list has made a business plan seem all the more scary and arduous a task, don’t panic. There are books on the market that will guide you through the process.

A clean attractive business plan is a sine qua non if you will be applying for a loan or looking for investors. But even if the document is for your eyes only, you owe it to yourself to produce a professional-looking document. Since it is your road map, the neater it is the better it will serve you when you refer to it at various stages of your entrepreneurial journey.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Social Influences on Consumer Behavior


Behavioral scientists have become increasingly aware of the powerful effects of the social environment and personal interactions on human behavior. In terms of consumer behavior, culture, social class, and reference group influences have been related to purchase and consumption decisions. It should be noted that these influences can have both direct and indirect effects on the buying process. By direct effects means direct communication between the individual and other members of society concerning a particular decision. By indirect effects means the influence of society on an individual’s basic values and attitudes as well as the important role that groups play in structuring an individual’s personality.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Performance Appraisal


A performance appraisal is one of the best and most important ways to recognize a person. When you recognize people in this way you accomplish two objectives. You let the person know how you feel about him and you provide a permanent documentation of the recognition. The documentation will be important to the person’s future growth and advancement within the company.

When you recognize a person through the performance appraisal, make sure you provide as complete a list as possible of his major accomplishments. As you note the accomplishments, be specific. A person who is unfamiliar with the work of the area should be able to read the appraisal and get a fairly complete picture of the person’s accomplishments.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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