Cost Control Measures for Small Business

Cost control strategies that small business can adopt. With the ever increasing cost of doing business, there is need for any business that wants to remain competitive in the market place to embark on cost control programme. We have witnessed large companies implementing different cost control strategies lately. I think small businesses have to follow the suit as long as they buy from the same market with the multinational companies. Before I continue, it is important to draw a line between cost control and cost reduction. The two terms sound the same but they are different in meaning. While cost reduction Continue ReadingCost Control Measures for Small Business

Problems of Overtrading in Small Business

Problems and solutions of overtrading. Overtrading is one of the challenges a small business may face when the business begins to grow. What is overtrading? Overtrading is when a business is selling faster than what its resources can support. In other words, it means taking more jobs than what a business has the capacity to execute. This situation usually happens when a business seems to be profitable and sales begin to increase in a dimension that is beyond the company’s projections. Ordinarily, increase in sales is good for business. But if the sales are growing too fast in such a Continue ReadingProblems of Overtrading in Small Business

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