Talking about Bookkeeping


Everyone knows intuitively, if not experientially, that good bookkeeping is good business. If you don’t keep track of your business’s money matters—what comes in and what goes out—you will be in the dark as to how well or poorly your business is doing, and hence how well or poorly you’re handling certain aspects of the business. After all numbers do not lie. If they indicate that all is well, you’ll be able to capitalize on your success by, if nothing else, continuing to do with confidence whatever you’re doing right. If the numbers reveal that all is not well, you will be able to take appropriate measures to solve problems which if left unchecked could land you in failure zone. Just as with certain physical diseases, early detection means early cure and increased chance of survival. Lastly, it goes without saying that slipshod recordkeeping can cost you time, anxiety and even money when tax time rolls around. In sum, while its understandable that people are inclined to avoid and neglect bookkeeping matters, its fundamentally inexcusable.

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.

Factors of Production


Each business has its own mix of the four factors of production, vis-à-vis, natural resources, labor, capital, and entrepreneurship.

Natural resources refers to everything useful in its natural state as a productive input including agricultural land, building sites, forests, mineral deposits, and so on. Natural resources are basic resources required in any economic system.

Labor is critically important. It refers to everyone who works for a business, from the company president to the production manager, the sales representative, and the assembly line worker.

Capital is defined as the funds necessary to finance the operation of a business. These funds can be provided in the form of investments, profits, or loans. They are used to build factories, buy raw materials, hire workers, and so on.

Entrepreneurship is the taking of risks to set up and run a business. The entrepreneur is the risk taker in private enterprise system. In some situations the entrepreneur actively manages the business; in others this duty is handed over to a salaried manager.

All four factors of production must receive a financial return if they are to be used in a private enterprise system. These payments are in the form of rent, wages, interest, and profit. The specific factor payment received varies among industries, but all factors of production are required in some degree for all businesses.

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.

Contamination of Resources


Nations have paid relatively little attention to the contamination and destruction of the world’s natural resources. Entire forests have been destroyed by people wanting to get firewood or to clear land and by contaminated air and water. Pollution control of air and water was considered a luxury that governments, anxious to attract new industry and to keep the industry they had, could ill-afford to impose. Developing countries assert, “They can’t afford pollution control like Japan or the United States—that’s cultural imperialism.” They unfortunately do not realize that the price for such negligence is too high.

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.

Tangible and Intangible Property


Tangible property has a physical existence; land, buildings, and furniture are examples. Property that has no physical existence is called intangible property; patent rights, easements, and bonds are intangible property. The distinction between tangible and intangible property is important primarily for tax and estate planning purposes. Generally, tangible property is subject to tax in the state/province in which it is located, whereas intangible property is usually taxable in the state where its owner lives.

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.

Self-Respect


Self-respect is a rule of successful living. Think about it everyday until you apply it to everything you do.

People respect us in direct proportion to how much we respect ourselves. If you think of yourself as a first-class person, others will show you first-class respect. But if your self-concept is “I’m a second-class nobody,” you will receive little respect. You are headed straight for the land of nobodies.

No store carries a product called “self-respect,” so we cannot buy it. Nor can we inherit self-respect. It doesn’t come with the genes. And we can’t borrow self-respect from someone who has it. It has only the source: One’s self.

Meneius, a wise Greek said 2400 years ago, “A superior person will not show narrow-mindedness or the lack of self-respect.” We do not respect the person at work who belittles other people, rides hard over the workers, looks like a bum, and constantly uses profanity. The behavior of such people tells us they lack self-respect, so why should we respect them? Lack of self-respect is instilled in many people by a negative environment.

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 Greening of Management


Environmental regulations, such as the laws governing clean air, water, and land establish minimum legal standards that businesses must meet. Most companies try to comply with these regulations, if only to avoid litigation, fines, and, in the most extreme cases criminal penalties. But many firms are now voluntarily moving beyond compliance to improve environmental performance in all areas of their operations. Researchers have sometimes referred to the process of moving toward more proactive environmental management as the greening of management. Green management can improve a company’s strategic competitiveness.

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.

Private Enterprise


Private or free, enterprise is the economic system. It means that most of the country’s goods and services are provided by privately owned firms that compete with a minimum of government controls. The private enterprise system has six key characteristics:

  1. Private Ownership of Property: most businesses, land, minerals, buildings, machinery, and personal goods are owned by people, not by governments. This ownership is the right of people. It is an incentive to work hard to acquire and care for our own property. This sort of incentive contributes to the economic growth of the country.
  2. Freedom of choice and limited government: Freedom of choice allows businesses to select the products they produce, hire and fire employees, compete for customers and supplies, and make and dispose of profits. Freedom of choice also allows consumers to buy whatever products and services they are willing and able to buy from whichever firms they choose. Freedom of choice implies a limited amount of government intervention in the area of private enterprise. In a free enterprise system, government sets the” economic rules of the game” by establishing basic laws and regulations that ensure society’s welfare. But within the context, individuals and organizations are left largely free to pursue their own interests and inclinations.
  3. Consumer sovereignty: Consumers rule; the more carefully they make their decisions, the more clearly the economy will reflect their needs. The more money you spend in the marketplace, the greater your influence.
  4. Profits: Profits make businesses responsive to consumer wants. Profits are also a good indicator of where to expand and how to compete better. As a shop owner you can also compare the overall profits with past results or with profits of other businesses to gauge how well your shop is doing. Profits are the clearest standard of performance available to a business. But consumers often misinterpret business profits. They also don’t always understand how profits direct a business’ efforts. And consumers usually substantially overstate how high business profits actually are.
  5. Competition: Most business leaders believe their industries are highly competitive. But the term “competitive” has many meanings. Pure, or perfect, competition exists in an industry when 1) there are many firms of about equal size, 2) all firms produce the same product, 3) each firm can enter or leave the industry when it wants, and 4) all firms and customers are well-informed about prices and availability of products. No industry completely satisfies all these conditions, although some come close. Most industries operate under conditions of imperfect competition. This means they satisfy some but not all the conditions of pure competition.
  6. Productivity: Productivity is essential to the economy, whether it means designing faster microcomputers or better-testing toothpaste. Increased productivity helps offset inflation and keep prices down. Productivity is defined as real output (the value of the product independent of price changes) per working hour, and it is usually written as a percentage.

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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