Home Office – Emerging Possibilities

Advances in technology and the downsizing of organizations offer opportunities for micro enterprises particularly for extending professional services, apparel design, crafts manufacturing and sales, catering, computer programming, copy editing, financial planning, graphic art & design, insurance agency, interior decoration, interior design, event management, realting, research, tailoring, travel agency, tutoring, and data entry/typing. You can also offer home/office cleaning services, or an errand service. The more you know about the business that you may undertake, the better.

 Subcontracting is another option. Procure orders and sublet to experts.

 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.

Travel Stress

We travel to get to work, we travel during our work, and we travel to get to distant meetings. Travel comes in all forms: short and long timeframes and short and long distances. For most people, the commonest hurdle is the daily grind to and from work. This is most acute in large cities. The problems are truly international, but some of the ugliest and best-studied traffic jams are now everywhere.

The levels of stress that this brings are extremely significant. For those who handle it poorly, it can be damaging  to their health, and may even endanger the lives of others. Medically, we know that stress mechanisms all fire at once when the body identifies a crisis. Adrenaline pours out, the stomach shuts down, the pulse races, and the hair stands up on end. The blood pressure soars, muscles clench in spasms around the shoulder tips and jaw,  and primal aggressions rise, ready for fight or flight.

With immediate flight brings out of the question, more and more frustrated drivers are turning to the fight option—either inside their cars as they tip at the heels of slower drivers, or outside their cars, where they may stomp up and beat a dent into the roof of an offending vehicle. Even the mild and polite become aggressive when they strap themselves into their bumper cars to drive to work. This means they usually arrive late, enraged and spent before they even start to face the day’s stresses on the job.

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.

Personal Selling: Two Approaches

Personal Selling: Two Approaches

Many American companies do not put nearly enough effort into direct, personal communication. Japanese success in displacing the US as Saudi Arabia’s leading supplier is instructive. Japanese exporters and small teams to meet with Saudi importers: Japanese exporters; they go to Saudi workshops, travel to secondary towns, and meet with sub-agents. The Americans, on the other hand, invite all their Saudi agents together for a luncheon, do not have private meetings, do not get their hands dirty, and never travel to secondary towns—they tend to stick to the three market centers. Saudis complain that US effort is misdirected: American personnel devote infinitesimal detail to making advance arrangements for visiting executives, going so far as to specify rooms overlooking a certain view from the hotel.

Japanese firms supplement their direct, personal efforts with heavy local advertising. They use gifts generously in product introductions, and warrantees on Japanese consumer electronics range up to three years. To carry out this business, Japanese trading companies have large staffs of professional international marketers who have been cultivated since graduation from a Japanese international trading university, schooled in English and Arabic, and rotated worldwide as international trading specialists.

Compared to most other cultures, particularly non-Western. Americans are extraordinarily preoccupied with the tangible aspects of a product. They round up all their sales agents and give a product presentation instead of putting their energies into the more important component of international marketing—people. In American and only a few other countries it is normal to do business from a distance, between strangers, by mail or telephone.

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.

Women in the Workforce

One of the most visible trends in the business world is the surge of women joining the workforce. To join the workforce, women are delaying having children under later than they once did. Women in their 30s now account for one birth in four. More of their children under 6 years old spend substantially above-average amounts for a wide array of goods and services, including insurance, entertainment, autos, apparel, and everything for the child (bedroom furniture, toys, clothes, shoes, etc.). working women thus create job opportunities for people in retailing, services, travel, and other industries.

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.

Constructing an Employment Ad

Experienced advertisers use a four-point guide called AIDA (attention, interest, desire, action) to construct ads. You must, of course, attract attention to the ad, or readers may just miss or ignore it. Develop interest in the job. You can create interest by the nature of  the job itself. You can also use other aspects of the job, such as location, to create interest, create desire by spotlighting the job’s interest factors with words such as travel or challenge. Keep your target audience in mind.  Make sure the ad prompts action with a statement like “call today,” or “write today for more information.”

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.

Sole Proprietorships

Sole proprietorships, businesses owned and operated by one individual, are the most common form of business organization. Sole proprietorships are generally managed by their owners. Because of this simple management structure, the owner/manager can make decisions quickly. This is just one of many advantages of the sole proprietorship form of business.

Ease and Cost of Formation: Forming a sole proprietorship in relatively easy and inexpensive. In some countries, creating a sole proprietorship involves merely announcing the new business in the local newspaper. Other proprietorships, such as barber shops and restaurants, may require state and local licenses and permits because of the nature of the business. No lawyer is needed to create such enterprises, and the owner can usually take care of the required paperwork.

An entrepreneur starting a new sole proprietorship must find a suitable site from which to operate the business. Some sole proprietors look no farther than their garage or a spare bedroom that they can convert into a workshop or office. Computers, personal copiers, fax machines, and other high-tech gadgets have been a boon for home-based businesses, permitting them to interact quickly with customers, suppliers, and others. Many independent salespersons and contractors can perform their work using a notebook computer as they travel. E-mail and cell phones have made it possible for many proprietorships to develop in the service area.

Secrecy: Sole proprietorships make possible the greatest degree of secrecy. The proprietor, unlike the owners of a partnership or corporation, does not have to discuss publicly his or her operating plans, minimizing the possibility that competitors can obtain trade secrets. Financial reports need not be disclosed.

Distribution and Use of Profits: All profits from a sole proprietorship belong exclusively to the owner. He or she does not have to share them with any partners or stockholders. The owner decides how to use the profits.

Flexibility and Control of the Business: The sole proprietor has complete control over the business and can make decisions on the spot without anyone else’s approval. This control allows the owner to respond quickly or competitive business conditions or to changes in the economy.

Government Regulation: Sole proprietorships have the most freedom from government regulation. Most government regulations apply only to businesses that a certain number of employees, and securities laws apply only to corporations that issue stock. Nonetheless, sole proprietors must ensure that they follow all laws that do apply to their business.

Taxation: Profits from the business are considered personal income to the sole proprietor and are taxed at individual tax rates. The owner pays one income tax.

Closing the Business: A sole proprietorship can be dissolved easily. No approval of co-owners or partners is necessary. The only legal condition is that all loans must be paid off.

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.

Planning a Research Strategy

If you plan your research strategy carefully, the whole project will flow smoothly. Follow these steps:

1. Work out a schedule and budget for the project that requires the research. When is the deliverable—the document or the presentation—due? Do you have a budget for phone calls, database, or travel to libraries or other sites?

2. Visualize the deliverable. What kind of document will you need to deliver: a proposal, a report, a Website? What kind of oral presentation will you need to deliver?

3. Determine what information will need to be part of that deliverable. Draft an outline of the contents, focusing on the kinds of information that readers will expect to see in each part. For instance, if you are going to make a presentation to your supervisors about the use of e-mail in your company, your audience will expect specific information about the number of e-mails written and received by company employees, as well as the amount of time employees spend reading and writing it.

4. Determine what information you still need to acquire. Make a list of the pieces of information you don’t have. For instance, for the e-mail presentation, you might realize that you have anecdotal information about employee use of e-mail, but you don’t have any specifics.

5. Create questions you need to answer. Make a list of questions, such as the following:

1. 1. How many e-mails are written each day in our company?
   2. How many people receive each mail?
   3. How much server space is devoted to e-mails?
   4. How much time do people in each department spend writing and reading e-mail?

Writing the questions in a list forces you to think carefully about your topic. One question suggests another, and soon you have a lengthy list that you need to answer.

6. Conduct secondary research. For the e-mail presentation, you want to find out about e-mail usage in organizations similar to yours and what policies these organizations are implementing. You can find this information in journal articles and from Web-based sources, such as online journals, discussion groups, and bulletin boards.

7. Conduct primary research. You can answer some of your questions by consulting company records, by interviewing experts (such as the people in the Information Technology department in your company), and by conducting surveys and interviews of representative employees.

8. Evaluate your information. Once you have your information, you need to evaluate its quality: is it accurate, comprehensive, unbiased, and current?

9. Do more research. If the information you have acquired doesn’t sufficiently answer your questions, do more research. And, if you have thought of additional questions that need to be answered, do more research. When do you stop doing research? You will stop only when you think you have enough high-quality information to create the deliverable. For this reason, you will need to establish and stick to a schedule that will allow for multiple phases of research.

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.

Electronic Meetings

If it were possible to travel at nearly the speed of light, you could, in a single day, meet with managers in London, Rio de Janeiro, Cairo, and Stockholm, spend time preparing for each meeting, then be home for dinner at a reasonable hour. That sounds like an impossible schedule, because we can’t travel at light speed. Yet, executives are holding those meetings, all on the same day, and never going far from their offices. While our bodies resist transport through space, our voices and our images, carried by electronic impulses, encircle the globe in seconds, allowing us to personally communicate with others in virtually every place on earth.

This new age of global electronic communications has opened the need for learning a new series of meeting skills. The electronic meeting is not only a reality, it’s an everyday occurrence. There are two types of electronic meetings in which participants offer views in a personal exchange. The first is the teleconference. The videoconference is the second electronic meeting method.

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 New Corporate Governance Structures

The most significant change in the restructuring is the heightened role of corporate internal auditors. Auditors have traditionally been viewed as performing a necessary but perfunctory function, namely to probe corporate financial records for unintentional or illicit misrepresentations. Although a majority of US corporations have longstanding traditions of reporting that their auditors operated independently of CFO approval and that they had direct access to the board, in practice, the auditors’ work usually traveled through the organization’s hierarchical chain of command.

In the past, internal auditors reviewed financial reports generated by other corporate accountants. The auditors considered professional accounting and financial practices, as well as, relevant aspects of corporate law, and then presented their findings to the chief financial officer (CFO). Historically, the CFO reviewed the audits and determined the financial data and information that was to be presented to top management, directors, and investors of the company.

Because CEOs and audit committees sign-off on financial results, auditors now routinely deal directly with top corporate officials. Approximately 75 percent of senior corporate auditors now report directly to the Board of Directors’ audit committee. Additionally, to eliminate the potential for accounting problems, companies are establishing direct lines of communication between top managers and the board and auditors that inform the CFO but that are not dependent on CFO approval or authorization.

The new structure also provides the CEO information provided directly by the company’s chief compliance and chief accounting officers. Consequently, the CFO, who is responsible for ultimately approving all company payments, is not empowered to be the sole provider of data for financial evaluations by the CEO and board.

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.