Types of Business Risks

List of business risks you must beware of. Before we start discussing about business risks, it is important we understand what risk is all about. The word ‘risk’ applies to almost everything we do. Therefore, it is not restricted to business alone. What is risk? Risk is the probability that things will not work out as planned. That is, the likelihood for you not to achieve your desired results. So, if we should apply this to business, we now have what can be called business risks. What is business risk? Going by the definition of risk given above, we can Continue ReadingTypes of Business Risks

Importance of Bank Reconciliation

Why must you perform bank reconciliation? If you have bank account(s), it is very important that you perform bank reconciliation at least once every month. Preparation of bank reconciliation statement is not optional; it is a must for every business owner. When I decided to write about this topic, my mind just flashed back to my secondary and tertiary schools days. That was about twenty years ago. I remember vividly that preparation of bank reconciliation statement was one of the topics that our teacher/lecturer focused attention on. They kept reinforcing the need for us to fully understand the topic. To Continue ReadingImportance of Bank Reconciliation

How to Set Employee Compensation

Setting your employee compensation and benefits. How do you determine your employee compensation? Do you just follow a minimum wage law or you have your own employee compensation plan in place? Before I go fully into this topic, I want to say that the law regarding minimum wage payment should not be followed blindly. The government sets minimum wage in order to provide a benchmark for employee compensation so as to ensure that staff are rewarded fairly. I have had encounter with many sole proprietors who refused to recruit because, according to them, they could not afford to pay the Continue ReadingHow to Set Employee Compensation

Effects of Technology on Small Business

How has technology impacted your business? Technology has actually changed many things about the ways businesses are being conducted. Whatever type of business one is doing or about to start, failure to consider the impart technology may have in the business may be like digging one’s grave. In most cases, people tend to look at the good side of technology. If you are a business owner, it is advisable to also look at the other effects technology may have on your business. Over this weekend, a person was discussing his plight with me. I actually felt for him but the Continue ReadingEffects of Technology on Small Business

Money Management Tips for Business Owners

Two money management tips every entrepreneur must practice. Money management skill is one of the vital skills every business owners must possess. If you are a young entrepreneur who has possibly been working as an employee, you may soon be faced with the reality of entrepreneurship. While working as an employee, you are rest assured that at the end of every month, your pay check is guaranteed. But in entrepreneurship, you are not certain whether you will be able to earn enough revenue to cover your overheads for the month not to talk about having anything left for you.. As Continue ReadingMoney Management Tips for Business Owners