How to Prevent Bad Debts in Business

Preventive measures against bad debts. What is “bad debts”? In a simple language, I will define bad debts as sales made to customers on credit which you are not able to collect. On the other hand, one can say that bad debts are irrecoverable debts. Bad debts as its name implies is bad for any business. It does not only distort your financial reporting, it also affects your liquidity. Let me explain this. In accounting, you prepare your financial statements using accrual concept. This implies that you recognise your revenues when sales are made. You don’t wait till the time Continue ReadingHow to Prevent Bad Debts in Business

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

The Power of One Customer

Don’t under-estimate the power of one customer. When you start a business, the next thing you expect is for customers to start patronising you. Whatever the type of business you do, whether online or brick and mortar, whether you sell products or you offer services; you need customers. Of course, no one will ever be satisfied having just one customer. You need more than one customer to build a healthy and sustainable business. However, in your quest to get many customers, you should not overlook the power of one customer. It does not matter how large your customer base it, Continue ReadingThe Power of One Customer