ATO released the instant write-off for assets costing lower than $20,000. Businesses can get tax deduction from their assets instantly, a beneficial move if the asset is indeed helping companies gain profit.

Aside from assets worth less than $20,000, entrepreneurs can also get some tax benefits for assets over $20,000 in value if placed in simplified depreciation pool.

These changes drive countless entrepreneurs to start investing on assets costing lower than $20,000. The authorities and tax experts recommended several assets that can be purchased for business use.

IT Hardware

Computers and printers are among the best assets to purchase for this deduction. They are used for almost all business operations and regarded relevant for all businesses. Computers are relevant since they store business data like payroll, clients’ contact numbers, service schedules, and a lot more. Printers are then used for getting the data on paper, which will be used for auditing or income analysis.

Other related assets like photocopiers and scanners may also bring deductions for entrepreneurs due to their relevance in running the business.

Computer software, however, may not be eligible for the write-off even if declared under the software development pool rules.

Work Vehicles

Work vehicles are crucial for product delivery or providing services. These vehicles are mainly used for business purposes to get complete write-off. Luckily, several cars and vehicle types will fall under the ATO-set price range, ensuring businesses can save money in the end.

One thing for entrepreneurs to watch out for is if they use the vehicle for personal and business use. It’s normal for small businesses to use their own cars for both personal and business use. ATO allows this practice and still makes vehicles eligible for the deduction. However, the office will grant discount according to the vehicle’s use for a company. For instance, if a car is used for 70 percent business and 30 percent personal purposes, the office will only give 70 percent of the car’s value as part of the deduction.

Shop or Office Furnishing

Shop and office furnishings are included in the deduction under this new regulation. Furnishing like tables, chairs, and others are used by customers or employees to do their daily business. Other similar furnishing may also be included in the deduction so long as they have the same value.

Machineries

Businesses focusing on manufacturing would need machineries as investment. Machineries vary across all business types. For bakeshops, large ovens, mixers, and kneaders are the main assets that can be considered for these deductions. Processing companies will benefit from specialized machines that boost production volume and efficiency, with those being the main equipment used for manufacturing products for profit. They can also cost a lot of money, which means writing them off for deduction will be a big help for entrepreneurs. After some time, entrepreneurs can invest on additional machineries as part of expansion.

Kitchen Equipment

Special kitchen equipment for restaurants are great help in preparing meals served to guests. Aside from ovens for bakeshops, gas ranges, and other kitchen equipment used for mainly business purposes will become a great help for entrepreneurs with their savings.

Cooling Equipment

Cooling equipment like air conditioning units benefits workers and customers. Their provided comfort makes them assets in businesses.

Air conditioning units have significantly decreased in prices. Regardless of sizes and designs, entrepreneurs will save a lot of money in getting several air conditioning units. Investing on more cooling units will also be helpful when businesses expand with more walk-in clients that need cooling.

Storage Containers

Equipment requires good storage systems to retain their pristine condition. Keeping their original condition also aids in continuous business. A good storage container for machineries will give businesses an edge in protecting their assets. Storage containers are included in ATO’s write-off.

Tradesmen Tools

Tradesmen must have their own tools. This means everyone should be given a set of tools to do their jobs. Companies may also have spares for employees to use in case their tools are not around. Small businesses can now grant each tradesman a tool set as entrepreneurs can get deductions from this asset.

Display screens and Signages

Businesses doing customer services will benefit from display screens as signages for shops and offices. Display screens will show information of the day like exchange rates or client number served. Screens will make waiting a bit more convenient for clients while promoting smooth flow in managing customers.

General Information about Assets

Almost every asset used can be eligible for write-off. However, entrepreneurs must also know some vital details that affect asset eligibility. One is the write-off only applies to purchased, ready-to-use assets. Capital works that utilized construction costs won’t be eligible for this deduction.

As for usage, the asset should be ready to used or easily installed and can be used instantly. Some entrepreneurs may take advantage of this deduction by stockpiling assets then claim deductions even if they are not used for business.

Assets to be claimed for deduction can be brand new or secondhand investments. Entrepreneurs who want to save money by buying affordable, but working secondhand machineries are still eligible for deduction after filing them write-off.

Finally, every asset claimed must be relevant and helpful for the business. Some entrepreneurs may go buying a lot of assets to file for deduction even if they are not related to businesses. A good example is numerous display screens for a utility service provider like electricians. They are not related to the actual nature of business and won’t be granted deductions.

ATO’s new scheme is a helpful way for small businesses to save money on their assets. They can start investing on new assets that improve business operations and customer services. This will bring profit in the long run and help businesses in their expansion.

References:

http://myob.com.au/blog/instant-write-off-for-small-business-assets-under-20000-how-does-it-work/

https://www.ato.gov.au/Media-centre/Media-releases/ATO-issues-advice-on-$20,000-immediate-asset-deductibility-for-small-business/

Coming up with a business idea is easy, but whether or not it will sell is another story. Countless people tried their business ideas and failed with the lack of appropriate market. Use the following tips to test your business idea first before launching it to the market.

Look for Similar Ideas Online

People tend to have similar business ideas, but with difference that makes them stand out. When you want to pursue a business idea, look for businesses that utilize the same ideas as you. Consider this as an early market research before launching your business.

If there’s a business with similar ideas, look for aspects that make your idea different. Do you have specific ideas that target a different market? What product features do you plan to offer that current businesses don’t have? Compare other businesses to your idea and see if you can compete with them.

Conduct a Business Dry Run

Conducting a business dry run is putting your ideas out there and see if potential customers will buy them. A good way to start is by creating a website for your business. Set a simple landing page for starters filled with information customers would want to know in your business. Be sure to place complete links to your email or pre-ordering procedures. This lets you know how many people are willing to buy your product or services then gauge if your business captured customers’ attention.

Use Google Keyword Tool and Adwords for Testing

Google keyword tool is a tool that lets you use AdWords for business dry run. Use this tool to find keywords related to your business or competitor business. You can use a competitor’s website to search for keywords used for the business. Once you found the right keywords, use them for AdWords.

AdWords is Google’s paid advertisement. This lets you bid on keywords and pay for the number of clicks done on your website. Start bidding using a small amount then gradually increase your bid until you get a click. Use conversion tracking and see if the business caused people to sign-up. High conversion rates mean more chances of making your page popular among customers.

This idea is recommended for establishing online businesses or non-product based business.

Test the Idea on eBay

EBay is a popular webshop and a good place for testing product-based businesses. Aspiring entrepreneurs can post their products and see if people are willing to buy it through pre-orders. Products posted are according to niches clients want to target. When the product is posted, wait for the volume of people who would want to pre-order the product. If you see that the volume is significantly higher than expected, you can say that the business is a hit.

There’s a catch in posting unavailable products on eBay. You would need to produce the product quickly once orders pile up. Be sure to make the product with utmost quality to avoid tarnishing your startup business’ name and get more buyers for the product.

Set Up an Online Poll or Survey

An online poll or survey will give you idea about what people like to see in the market. Your focus is to ask for specific products they wish to get, features that will benefit their lives, and reasons why they want to buy their suggested products. An online survey will let you know what the market wants and the reason behind the demand for additional market study.

The advantage of setting up an online poll is it’s easy to make. Online survey platforms allow survey customization, letting you place your own questions and answer fields. Even if you personalized your survey, the platform will still calculate results automatically for your convenience. Moreover, many survey platforms are available for free or with minimal charges suited to your budget.

Set Terapeak as Testing Tool

Terapeak is a business idea testing platform that gives you an idea about market behaviors and price comparisons when you began offering the product. This tool is best used for product sales as utilizes business intel from Amazon and eBay buyers.

Terapeak was available for free before, but it now charges a price for use. However, you will still find some free trial links to test this tool and see if it’s worth investing, especially if you’re someone who’s into multi-business ventures.

Mailing List for Testing

A mailing list lets you collect leads or potential buyers for your business. Through a mailing list, you’ll know the size of your market. Also, your mailing list lets you communicate with customers and build business relationship, a crucial element in keeping your business running.

The mailing list will also be a marketing platform in case you’re about to launch another product. There’s the probability of your current customers needing the product you’re about to offer and gain profit from them.

Bring Your Ideas to Social Media

One of the free ways to test your business idea is through social media. Post your business idea on your Facebook status or tweet it to your follows. You can get feedback from friends or followers about your business and see the market.

The advantage of social media is you can set up an account for free. If you have an existing and active account, you can use it for introducing your business idea.

Ask Help from Friends or Family Members

Lastly, asking some input or idea from your friends and family members is also helpful. You don’t have to consult other people and simply get ideas from people around you. Ask them for honest feedback and use it for business.

Testing your business idea is crucial. Use these budget-saving tips for testing to boost the chances of growing your business. This saves you from spending money as capital for a business or product that won’t sell and lose money in the end.

References:

http://www.virgin.com/entrepreneur/five-ways-to-test-your-business-idea-for-free

http://www.readysetstartup.com/6-free-or-low-cost-ways-to-test-your-business-idea/

http://www.startupdonut.co.uk/startup/start-up-business-ideas/testing-business-ideas

http://www.ideabank.com.au/how-to-test-a-new-business-idea-for-free-and-fast.htm

http://www.entrepreneur.com/article/237455

Easy Report Generation

an accounting software can be used for invoicing and auditing expenses. Companies can get their reports instantly by using this program. Entered data will be available instantly for generating complete or specific reports. Specific reports may only be focused on expenses, income, payroll and others that would require analysis. Users can set up the program to generate various report types and have them printed immediately.

Accurate Data and Fast Processing Speed

An accounting software stands out for its fast data processing. This feature is possible by streamlining two data-related procedures: data entry and calculation.

An accounting software can be developed as part of a suite. This suite contains an array programs often needed by companies. Examples are payroll software, logistics software, employees’ attendance and work hours software, and others. The main accounting software generates data from other software installed in a company. Whenever a data is entered and computed in one of these programs, results will be automatically entered to the accounting software. This eliminates the need for users to manually enter data into the accounting software, which results to data accuracy.

Fast calculation is another benefit offered by accounting programs. It eliminates manual computation that is often prone to mistakes and affects the entire accounting data. Experts developed these programs by coding accounting formulations to accurately generate results.

Automatic Platform Updates

this program comes with automatic platform updates from developers. Business suite developers continue to find ways to improve their program’s architecture and security. Users can set automatic updates. Once the computer is connected to the internet, the program will check for rolled out updates then install them for improved performance and security.

Fast Data Export to Files

A company requires multiple accounting files for various needs like spreadsheets, PDF files, CSVs and others. An accounting program is designed to export data into specific files easily. They have export buttons to use for exporting all data or specific entries then save in different file formats as required by companies.

Vital Accounting Information Generation

Aside from regular data like payroll, expenses and income, an accounting software can also generate or manage vital data like taxes. Complete accuracy is key in managing tax-related data. One mistake will cause changes in entries and possible tax inaccuracies that may result to legal problems. Tax information won’t be a problem by using an accounting program.

Speed in processing tax information also benefits businesses when it’s time for tax filing season. Accountant are often in a rush in completing all data needed for filing like tax returns and annual business taxes. Instead of rushing calculation and data entry, using an accounting program speeds up the process while ensuring data accuracy. Tax forms will be available in no time and ready for filing.

Legible Entries

Handwritten data entries may keep companies from using several computers in typing the data. However, handwritings are usually ineligible and cause data inaccuracies once copied or migrated into software. Moreover, business executives will find handwritten data difficult to read. This can be a problem if they want to carefully analyze the numbers for a month or per department.

Accounting software require users to type data in cells, which means all entered data are legible and easy to understand once document printed. Auditors and executives won’t have issues reading the entries whether they will check printed or digital documents.

Data Security

Accounting-related data typically has vital information about how much money the company is gaining, spending, and investing on the company. It’s wise for companies to keep the data as secured as possible to prevent it from leaking or being sold to competitors. An accounting program can be configured according to access. For example, access may only be limited to people within the accounting department. Other departments can only enter data into their respective data processors, but won’t have access to the actual accounting program. Users can configure the program according to their preferred setting to keep information classified.

Scalability

Scalability is a great benefit offered by accounting software. It grows with businesses. A startup business can invest on the actual accounting software since it won’t have extra funds nor many people to manage at the beginning.

Once the business begins to grow, starts to get more clients, and hires more employees, its owner can purchase a complete business suite to take advantage of other software’s advantages on efficiency.

Accountancy Savings

what many people don’t know is accounting can cost a lot of money. Data inaccuracies can cause issues that would cause fines like in taxes or inaccurate analysis that triggers income loss. Moreover, a company would need to hire more accountants to double check on the data to verify accuracy or track down mistakes. It won’t be a problem by using this special software.

By using the software, all a company needs is its team of accounting experts to assess generated data. Full documentation supported by this program allows them to track down inaccurate data then have them investigated before fixing the report. It eliminates the need to hire additional accountants and cut down overhead costs.

Staff Skills Improvement and Motivation

Most employees who have been accustomed to accounting work find it boring after some time. This feeling of boredom on a routinary activity may lead to data inaccuracies. By introducing an accounting software, employees will be given an uptraining of its usage and add it to their work experience as additional skills. They will find the training exciting and be more motivated at work.

Using an accounting program doesn’t mean eliminating the need for in-house accountants. However, it can promote efficiency in gathering data for accounting, speed up calculation, and prevent data inaccuracy-triggered income loss. Different accounting programs are now available for every company with features that match their needs.

References:

https://www.getapp.com/blog/benefits-online-accounting-software-small-businesses/

http://www.quickbooks.co.za/product/accounting-software/accounting-software-advantage/

http://www.itseducation.asia/computerized-accounting.htm

Effective collaboration is the key to efficient staff and task management. Countless program developers came up with their own collaboration software with features promoting efficient task distribution across employees. While effective, collaboration programs are not the cheapest application you will around. They often come in expensive suites, making them unsuitable for smaller businesses. Luckily, entrepreneurs on a budget don’t have to search far for the best collaboration program as Google Docs is available for free and offers the same feature.

Google Docs is a set of document processors developed by Google to promote file portability. Users can access and edit their files wherever they go. This platform has changed into a useful and free collaboration tools. Use it through the following to maximize staff and task management effectively.

Use and Edit Files without Downloading and Uploading Files

Employees who are on the go can leave their files behind, especially if they won’t be access to their personal computers for some time. Google Docs allows users to create their files online. The file automatically saves changes once the file name has been renamed. Once users are done with the files, they can share the files with employers or team leaders to see their progress. Users will generate the link to the file then send them to collaborators. Also, users can directly share the files to collaborators by choosing the share button found on the document. Google Docs will dispatch email notifications to collaborators for them to know a file is available for checking and given instant access to them.

If users need to edit the file, they will open the file and edit the contents. The file will then be updated automatically, keeping users from uploading and downloading their files just to apply necessary changes.

See Changes Realtime

What makes Google Docs a good collaboration tool is its ability to show changes in realtime. Online collaborators will see other members change entries on spreadsheet and documents. This prevents people from working on the same tasks and promote efficiency.

Users can also update if a task is still being worked on or not. Updates are posted then others will decide if it’s time for another collaborator to take on the job.

Manage File Access According to Users

Google Docs lets users configure access to files. Options include viewing option for collaborators or edit for editors or team leads. Individuals granted with editing option can access the file and make changes whenever needed. Viewers are only limited to viewing.

Depending on the file, users may also set if the file is available for download for everyone or not. This prevents unauthorized people from getting a copy of the file.

Collaborate with Other Users through In-Document Chat

Collaboration is more than sharing files with others. It requires communication for work purposes, and some times, to simply know everyone accessing the files. Google created an in-document chat for collaborators to talk to each other.

The in-document is a small chat box that works like a conference chat. It lists people online or currently accessing the file. They can type messages on the chat box and discuss the tasks before collaborators begin working on them.

Aside from in-document chat, users can also use the comments feature for leaving instructions or additional notes.

Filter Spreadsheet Data According to Needed Value

Google Spreadsheet works the same as regular paid spreadsheet files. Users can filter columns according to data needed. This data can be collaborators’ names working on each task, numeric values, letters, and others. Users can set advanced filter options to show rows of tasks or data.

The advantage of filtering data is it’s considered as a change that requires higher level access. This means the only people who can filter data are the document starter and assigned editors. Doing so prevents unauthorized changes on the spreadsheet, which may affect data accuracy.

Tag Users in Comments

Users can also use comments to collaborate with others. Comments can be appended on single cell or the entire document. Cells with appended comments will have indicators that additional notes have been placed on them.

Google developers took this feature to the next level by integrating notification features with the comments. Users can tag specific people by using plus (+) or at (@) sign followed by their email address. Tagged individuals will receive an email notification regarding the comment. The notification mail contains link to the appended comment, granting the tagged individual instant access to additional details he needs to know.

Use Spreadsheet as Timesheet

Google Spreadsheet can also be used as virtual timesheet. Document creator can create a timesheet-like file on Google Docs and share the files with collaborators. Collaborators will log in and type the time when they logged in, making it easier for online team leads to track colleagues attendance. Their attendance can then be used for calculating salaries or performance.

Receive Email Notifications According to Preferred Setting

Another advantage of using Google Docs is its email notification settings. Users can get digest of changes that occurred in the file within the day or receive email notifications as changes happen on the file. With the last option, team leads can receive notifications whenever collaborators applied changes on the file. The notification contains the collaborator’s name and link showing a preview of the changes. Users will click this link to see the highlighted changes. Also, the preview has a link that directs viewers to the full spreadsheet for easy access.

Track File Changes

Google Docs also save a history changes on the file. It indicates the people who edited the file and track down the changes made. Managers will easily know whether applied changes are valid or not through the members who did them. Team leaders can also use history changes to track member’s activity, ensuring they are doing their jobs on time instead of just logging in and leaving the tasks undone within the day.

Google Docs is a powerful collaboration tool as long as users know its features. It’s available for everyone for free and users simply need to use their Google accounts to gain access to Docs.

References:

http://www.theprocedurepeople.com/blog/2014/12/22/how-we-do-checklists-in-google-docs/

https://moz.com/blog/use-google-docs-to-manage-your-digital-projects-from-freelance-to-large-agency

Key Procedures in Starting a Business

Starting a business in Australia will take business from the filing process up to its actual operations. Take note of these tips to lighten up the pressure that comes with establishing a business:

Know Your Preparedness in Starting a Business

Establishing your own business brand will take a lot of your time, effort and money. You must be fully prepared with the challenges that come with business for effective management.

Take some time to think whether you’re actually prepared for starting a business or not. Assess if you have startup money to launch your brand, the right mindset and skills, and even a group of people who will be your support system. If you think you’re not prepared with this aspect, Business.gov.au posted several resources to help you acquire skills needed for running a business. It listed resource centers and mentoring teams for aspiring entrepreneurs to consult.

Choose a Business Name

If you think you’re prepared for a business, start thinking of a business name. You will need it for filing later. Think of a unique, attention-grabbing name related to your business. List several name options because you might need them later.

Know Appropriate Documents

Business filing will require numerous documents. Documents usually include papers that will prove your citizenship, identity and financial capability to start a business. Look for these documents online and prepare them early for easy filing.

Set Your Business Structure

Business structure refers to the entity type behind the business. Most startup businesses’ structure is sole proprietorship, which means an individual entering, managing and owning the trade. Other structures are partnership, trust, and company. Look for these terms definition online to find out the best structure for your prospect business.

File for ABN

ABN refers to Australian Business Number. It’s a unique identification number distinguishing your business from others. Several documents will be needed for getting ABN. Don’t worry about processing expenses as filing for ABN is free.

Check for Business Name Availability

Have your business name on hand and search whether it’s available or not at the Australian Securities & Investments Commission (ASIC) online. It has a platform that lets you check for business name availability. If your chosen name is available, you can continue with the registration. If not, continue searching until you find an unused business name.

Take note that business name registration costs $34 AUD for a year. You can keep the business name registered for three years by paying $79 AUD.

Register Your Website

A website will serve as information source or shopping site for your business. If you plan to build a website, you need to register it. Business websites with extension names .com.au or .net.au can be purchased through domain name registrars. Registrars will require for ABN in purchasing these domain extension names.

Set a Time for Managing Your Business

Time is everything in managing your business. Once you decided to set your own business, make time to do the filing yourself and oversee the entire business operation to ensure its success.

Budget-Saving Tips for Startup Businesses

as a first time entrepreneur, you want to save as much money possible in starting your business. These tips will cut down your expenses.

Know All Documents to File Beforehand

Being prepared with information about documents beforehand will keep you from spending on copies that you don’t need. Take note of needed documents, validity and renewal.

Deal with Application Yourself

Some agencies may be willing to help file your application for you. Even your friends may also assist in sending your application. However, you will save money by filing for business yourself. Using an agency will charge you hundreds of dollars for something that may cost less if you did it yourself. And even your friend won’t ask money from you, you still need to pay for his expenses in processing like gas, transportation, and probably some money for his snacks in return for his effort. Doing things yourself will save you a lot of money since there’s no third entity to pay and have enough money to pay for fees.

Start Small in Everything

A startup business will have limited cash and limited needs for employees. This means you must start small in every business need.

Hire an employee that you need and do the other jobs yourself. For instance, in starting a bakeshop, you need to hire a baker and probably another assistant. Hire these experts then you do the rest of the tasks like manning the register, serving people, and others. Also, enlist the help of your friends or family members if possible, but be sure to set their expectation that they won’t get paid. You can hire more people once your business grows.

For business space, settle with a small space to save on rent. Share a small space with another business or better yet, use your home as your business space temporarily. This saves rent money on business. You can look for a new space once the business has expanded.

Build a Free Website Yourself

Having a website is a good way of introducing your name to more clients. It’s now easy to build a website, but it can cost some money to get a domain name and web host. For now, take advantage of free website platforms just to have an online page for business information. Use free blogs or websites offering free hosting services. You can migrate all website information later once you have your own website.

Take Advantage of Free Marketing

Free marketing will be a great help to save money. Allot a small amount for pamphlets and give them away. But if you choose to market online, promote your business through social media and free online directories. Social media will give your business better exposure and gain more clients. As a local business, listing your business in an online directory in Australia will be helpful in finding your business as people visit the site for establishment reviews.

Starting a business requires effort and money. However, these tips can simplify the process and save your money for important expenses.

References:

http://www.business.gov.au/business-topics/starting-a-business/Pages/default.aspx

http://www.businessspectator.com.au/article/2015/7/16/family-business/how-save-money-when-starting-out-business

A business system is actually an internal “system” within a larger system or “operating environment” that includes customers, vendors, and even the government. It is important to gain a good understanding of a business’ resources, capabilities, operating procedures, and costs to more effectively operate the enterprise.

It is extremely important to understand how the systems work to determine if these are meeting the needs of the organization. We will discuss how internal business systems can be crucial to an operation. An overall business is comprised of two basic system components. In both cases, the key is to obtain and process the information that these components generate to assist in the decision-making process.

1. Primary or Business processes – These are activities, procedures, and operations that transform "inputs" to create the business’ product and service. The most basic categories are:

- Using raw materials to produce a product

- Buying products for reselling or consignment (wholesale or retail activities)

- Using manpower to create a service (professional services such as legal services and bookkeeping).

In this area, systems are needed to determine the most cost-effective and efficient way to procure and/or buy the “inputs” for making the final product. System improvements that will enhance this area include:

- Establishing lists, contacts, and profiles of suppliers and their products

- Developing a system to monitor inventory control and machine productivity, to identify backlogs and loss of productivity

- In the case of professional services, human productivity, for example, devising a system to determine how many hours of an employee’s work day is devoted to down time or breaks

2. Support processes – These activities are not directly related to creating the final output but are indispensable and necessary to run the business. They often significantly affect the output component in a business if proper attention is not paid to them, especially in the case of professional service firms that rely on the human resources function.

Aside from human resources, these support processes include sales and marketing, distribution, accounting and bookkeeping, collection of receivables, payroll, information technology, procurement and supply management, and training but do not directly relate to generating business such as bookkeeping, using technology, procurement and supplier management, managing staff and partnerships, training to improve expertise and hone skills, and generating usable and useful management information.

Many entrepreneurs tend to focus, and rightly so, on the input side of the business processes because this where their expertise lies and where they are most comfortable with. It is often a good idea to make them concentrate on these areas and leave the support processes to other capable employees, or even third parties.

However, it is vitally important to have a good understanding of how these processes impact the business. Support processes, while not directly impacting the business, involve a wider range of disciplines, skills, and attributes. A business needs accountants, salespeople, purchasing clerks, human resources administrators, collections staff, payroll processors, administrative assistants, and employees performing other functions.

If these functions and their related activities are not properly monitored and controlled, finished products from the input side may just as well remain unsold, collections from their sale uncollected, and funds collected from their sale being wasted and exhausted on unnecessary activities and purchases. Other consequences are serious, if not fatal, to a business: dissatisfied customers who cannot secure proper customer service, frustrated employees, work duplication or redundancy, and overpriced sources of products and services.

To properly organize these functions, it is imperative that a system is devised and that the following principles are followed:

1. Document everything - It is a good first step to keep in mind that, especially in support processes, there are an unlimited number of processes, situations, procedures, forms, and reports that need to processed, tracked, and warehoused. It is important for the business to have a paper trail of most of these to ensure that less time is spent later on looking for, and worse, recreating them.

2. Organize personnel - Develop an organization chart to properly delineate and define functional relationships such as manufacturing, sales, finance, and administration so that the proper personnel and skills can be placed accordingly. Within the chart, reporting relationships helps streamline and enhance communications and strengthen the functions.

3. Create and document specific functional and individual roles and responsibilities - For example, define what the marketing/sales function is supposed to accomplish, and within that function, define in detail the responsibilities of sales and marketing personnel, including how they need to report their activities and accomplishments. This also helps efficiency in the case of terminations and absences, where replacements can quickly step into a vacant position by reading and studying job descriptions.

4. Create procedural descriptions, and even flowcharts to document the processes - These help in assessing whether current policies and procedures make sense and enable decision makers to see, at a glance, how things work within the company.

5. Require that management information is created and distributed at the end of each process - Any system is effective only if it is able to provide the correct information on a timely basis to the owners and decision makers. Marketing reports, financial statements, and cash flow forecasts are just some of the crucial reports that need to be generated on a regular basis to help report on the results of a business.

REFERENCES:

1. http://www.kaizencoaching.com.au/articles/business_system.htm

2. https://www.mindtools.com/pages/article/improving-business-processes.htm

3. http://www.boxtheorygold.com/blog/bid/49839/Four-Business-Improvement-Methods-You-Should-Know-About 

The first question to ask is whether it is the proper time to dispose your vehicle. One point to consider is the type of business that you’re running. Having an old and shabby vehicle that is already falling apart can tarnish a good business’ reputation. By failing to meet with the demands of the work, your old vehicle can become an instrument that ruins the customers’ image of your business.

For example, a shop that delivers food to the customers’ homes can be placed into jeopardy because of the time-sensitiveness that it offers. If your old vehicle can no longer keep up with the time, customers’ satisfaction will be affected.

Another thing that you should ask is the amount of work that revolves around riding your business vehicle. If your business trips put you for considerable long miles away from home, it is best to invest in a much stronger car. Having an unreliable vehicle can put you at risk of being stranded on the road, compromising your business as well as your safety.

In the decision making process, it is also wise to consider the opinions of your employees. Sometimes, your old vehicle has a unique feature that you cannot easily replace with a new one. Some old delivery vans or trucks have higher capacities in comparison to the new models. Talking to your drivers can help you learn more about your vehicles to help sway the decision. Best of all, talk to a mechanic that you regularly go to. A mechanic can help predict the lifespan of your vehicle.

He can tell you what exactly needs repair and what you will most likely need to replace in the next couple of months. In this way, you will not be surprised at the amount of money drained away due to repairs. Once you learn about the estimates, you can decide if you are capable of purchasing such repairs or you would rather buy a new one than risk going through a time with your vehicle at the repair shop.

When is the proper time to dispose a business vehicle? Some government agencies determine whether it is time to dispose a vehicle. If it has reached a certain maximum amount of money in terms of repairs, it is immediately sold at an auction and replaced. The problem is, business owners do not have the luxury of replacing every business vehicle when repairs reached that certain amount. If the business vehicle has already reached the hundred thousand mile mark and is still performing well, it may be more worth keeping rather than being sold or scrapped.

One downfall of selling an old vehicle is that its value may rise and fall in just a short period of time. If you owned a business vehicle and failed to check on its current book value, you may be led to believe that it is worth a lot more than it is now, only to be shocked that it isn’t.

If you’re comparing expenses, having a business vehicle will expose you to four basic types of costs: Operations, Maintenance, Insurance and Depreciation.

Operational expenses are the simple ones such as gas, oil, registrations and taxes. For both new and old cars, they are almost practically the same. Depending on the model, some new vehicles eat up more gas than the old ones. Repairs are considered important when purchasing a business car. Since you know your old car very well, you are well aware of its current condition and maintenance expenses.

You can determine a new vehicle’s repair costs if you would divide the estimated repairs on your old car by the years that you own it. Insurance cost is a factor that totally depends on you. Upon knowing how much it usually costs, you can neglect it or supply your desired budget on it.

Finally, depreciation or the loss of a vehicle’s value is the major cost of a new vehicle as well as the important factor in keeping your old one. This is based on the model and condition of a vehicle and more importantly on the number of years that you have owned it.

Aside from the four types of expenses that a vehicle owner faces, you can also look at your costs in two divisions: the Standard and Running expenses. Standard expenses are basic costs that a business owner will pay regardless whether the vehicle is being used or not. These include taxes, insurance, capital, depreciation, etc. Running costs, on the other hand, are payments such as toll fees, gas, tire replacements, parking fees and repairs.

After you have made a comparison of the probable expenses that you will be shouldering once you’ve decided on a new vehicle, it is also important to consider the existing financial payments that you are still doing with your old one. Having a business means that your assets should be declared and taxed. By owning a new valuable business vehicle, it is most likely that you will be facing a higher property tax assessment.

Perhaps the biggest downfall of purchasing a new business vehicle would be if you are still unable to pay off your old business vehicle. After all, budget is one of the greatest things to consider when adding a new asset to your business. How would you be able to pay for a car every month if you’re still paying for your old one?

Sometimes, even new business vehicles can have unexpected repair costs. The best solution is to not have your asset make a decision for your business. Deciding to buy a new vehicle should come before your old one falls apart entirely. By planning for the future, you’ll be able to effectively avoid disasters in your business.

As the boss of your own company, you should understand the importance of having a strong management process. By having a solid workflow, you are able to recognize and maintain your top workers, align your goals and create an engaging atmosphere for the working environment.

When machineries were invented, the task of performing dangerous and even complicated work relied heavily on technology. This resulted into lesser workforce as machines eliminated the physical and mental limitations of humans. The rise of human workers were again felt when automation, systematization and delegation were also incorporated in the workplace.

The use of computers rapidly sped up the workflow of organizations since it helps with relaying orders and information. The use of automation and telecommunications eventually led to fewer complications at work. Work can even be done at the comfort of homes. Software and programs that help organize tasks, distribute electronic mails and evaluate job performances are being adopted by companies that house hundreds of employees.

Both employees and employers have access to all the information that they need. Ratings and productivity can easily be seen and reported. At the same time, less working hours is needed since necessary jobs are sorted out and prioritized. The workplace becomes an impenetrable system that minimizes mistakes and idle time. It also saves a lot of paperwork and administrative processes.

In order to cut off the workload that a leader is handling, he or she has to delegate other tasks. The most important task that you as a boss must be able to accomplish is teaching your staff to think of the proper queries and do the right tasks so that you can take a day off or do other jobs.

However, delegation is a vital skill that is often unused and misunderstood. Some leaders tend to think that it is too bothersome to delegate, since it is more efficient if they would just do the work themselves. This is job-hoarding. Insufficient delegation will lead to lack of motivation among your employees and strange indispensability on your part.

Some leaders are afraid to give out tasks to others because they have been berated in the past by their predecessors. This is why you as a boss should keep in mind the performances of your employees. By assigning the right task to a skilled worker, you minimize the risk of failure. Delegating jobs should not be a burden. Incorporate it on your development plans. Keep in mind the right person to delegate future projects. Encourage them to participate since this is also part of their performance goals.

The nice thing about having an automated and delegated working environment is that it is a win-win situation for both employers and employees. It cuts of work hours for you while it also serves as a learning step for future leaders.

Automation and delegation should be one of the primary components in mapping your system of labor. Research says that most of the problems in business are due to lack of a functioning system of processes.

There are a lot of things that you should keep in mind when mapping a production flowchart. First, it is helpful to listen to the opinions of your employees who are responsible in a certain process. They are more familiar with the obstacles and intricacy of doing the jobs assigned to them. It is important to also take note of the start and end points of each task. With this, you’ll be able to identify the objectives of each process and the desired output that you need to meet.

After knowing what the processes are for, set the objective expectations of the customer and the supplier. As a team, you need to work out the requirements that must be met in order to satisfy both. The customer brings in profit, while the supplier brings in the necessary ingredients.

Employees should think of themselves as internal or external customer as well. They each should fulfil the demands of other employees of the processes as well as demand needs to their suppliers. For each process, it is best to identify a leader. He is the one responsible for meeting the end of the process. This is to ensure efficiency among the workers. A process leader is also responsible in making decisions for his team.

One of the best samples of management methods is the employment of the SMART goals. A business manager or owner develops S-pecific, M-easurable, A-ttainable, R-ealistic and T-ime-framed objectives for each process. The development of ratings and weighted grades can also provide visibility to an employee’s performance. At the end of each month, you can review the scores of your team members and send in an anonymous feedback in order to cultivate accountability and empowerment.

Once agreed upon by all, you as a boss should document the mapping of the process workflow. Writing each process and organizing them in the manner that is most efficient to your team is essential. You can throw out ideas about what is the best possible way to eliminate work without compromising the product or services that you offer.

You’d notice that you can save a lot of time by eliminating unnecessary processes and focusing down on what is needed. Saved working time can be allotted to different purposes. You can plan on future endeavours for your business, delegate tasks for the next day or simply enjoy the freedom and build friendship with your team outside the workplace.

1. Create an organization chart – The first part to streamline a company’s operations is to create an organizational structure to streamline operations. A company with employees in more than one function, for example, an accountant and an accounts receivable clerk completing the accounting function, can benefit from preparing a chart. An organizational chart is the logical first step to streamline and organize a business. A chart also allows the business to manage growth as it provides a roadmap for the owner to see if hiring new people makes sense and what functions need strengthening. For a small- or medium-sized business, preparing a chart will take at most a couple of hours using any spreadsheet or document software.

2. Create job descriptions – After an organizational chart is prepared, the next step is to create positional job descriptions for the boxes on the chart. While this may seem time-consuming, the benefit is well worth the investment. First, the process forces the business owner to think about the functions inherent in the business. This additional knowledge is invaluable for shortening the time in evaluating whether the existing staff is adequate and for making future personnel decisions. Third, job descriptions save the company a lot of time because job duplications and overlapping will be avoided. This is because everyone knows exactly what specific functions and procedures they need to perform. Finally, a lot of time will be saved in the case of an employee’s absence or departure because there will be a useful written guide for each position’s job functions. It takes about 30 minutes to one hour to complete a job description, a one-time task, but it will save several hours down the line.

3. Invest in a reasonably priced off the shelf accounting software – Owners usually start by doing their bookkeeping and accounting on spreadsheets. As a business grows, maintaining endless spreadsheets often leads to a lot of redundancy and wasted time. Keep all your account information organized in one place. Combining applications like accounts receivable, accounts payable, and general ledger within the software discourages redundancy and errors arising from manually linking accounting functions with each other. Cheap off the shelf software like Quickbooks and even Quicken will save a lot of time beyond the few initial hours to install and learn the software. A lot of time is also saved because the software typically creates more than adequate documentary records, eliminating the need to look through endless records and files for past reports and documentation.

4. Restrict internet browser availability – This is can be a very underrated and much overlooked aspect of productivity. The internet provides small businesses with many convenient features to facilitate their operations, allowing employees to conduct research, access information, and view competitors' websites. A serious problem occurs, however, when employees spend time on the Internet doing activities unrelated to business such as shopping, browsing news sites, instant messaging, playing online games, and especially, browsing through and posting on social media websites. Some studies show that up to 40% of time is lost when employees have unlimited access to the internet. Restricting internet access can be achieved by one or more of three methods. First, have a written policy on internet use, specifying harsh penalties if excessive non-work related internet use is observed. Second, internet filtering software is available to actually prevent employees from accessing specified prohibited sites. Third, within legal limits, monitor computers in the workplace to determine if there are instances of unauthorized internet use.

5. Outsource certain office functions to free up personnel time and resources –Depending on the existing skills and resources within a company, many activities can be done by a third party services company. For example, there are a lot of outside payroll processors in Australia that can process detailed payroll cheques for a few dollars per employee. Just from a cost perspective, more often than not, utilizing a payroll services company will cost less than employing a full-time payroll processing staff in a company. The time savings are not limited just to detailed calculations of periodic payroll checques, but also in the various tax reports for governmental agencies.

Certain human resource functions can also be contracted out to qualified outside companies. These include interviewing and evaluating job applicants and designing forms such as personnel evaluation documents and application forms.

For manufacturing and retail companies, the activities involved in making a wonderful new product are different from the ones needed to distribute that same product widely. Consider the use of third-party suppliers of distribution and warehousing companies to eliminate the worries of how to move and account for product movement.

6. Consider re-arranging office space to facilitate movement and access within the physical space – For example, create a wide berth for access to and use of photocopying, faxing, and scanning equipment if these are not already available at individual work stations. Also consider the use of modular office stations where it is not necessary for someone to walk to another employee’s area to ask a question, or even just to determine if another person is available or not.

7. Leverage technology – Leveraging in this sense means making relatively simple changes to achieve exponential benefits in cost and time. Within the company, the most common technology enhancements involve using an enterprise-driven email and appointment system and developing a dedicated website for the company, or “intranet”, to disseminate, discuss, monitor, and process company information and activities. Also strongly consider using the “cloud” that, at the very least, can centralize the location of company information. In addition, information can be accessed anywhere so that an employee does not have to spend time commuting to the office to obtain information.

8. Promote and cultivate individual practices to enhance productivity and create time savings – In other words, instill a company-wide awareness that time is money and that productivity is king. There is a very long list of personal habits that can be recommended to create a culture of productivity. The most useful suggestions include directing supervisors and managers to delegate property and advising employees to avoid distractions, create to-do lists, and learn how to handle documents that come across their desks on a daily basis.

REFERENCES:

1. http://smallbiztrends.com/2013/04/50-time-saving-tips-business.html

2. http://smallbusiness.chron.com/limit-internet-access-business-46779.html

3. http://www.entrepreneur.com/article/239987

4. http://www.businessinsider.com/key-functions-any-small-business-can-outsource-2010-11

5. https://www.americanexpress.com/us/small-business/openforum/articles/27-money-saving-tips-from-successful-small-businesses-annie-mueller/

6. http://smallbizlink.monster.com/training/articles/403-six-rules-for-leveraging-technology-in-your-business

7. http://www.businessbee.com/resources/technology/cloud-computing-increases-business-efficiency/     

Regular customers are the ones who enjoy the closest relationship to a business. These people are able to revisit the establishment as many times as they want; hence, it is wise to have a crucial and solid attention to them. Having regular customers ensures a constant flow of revenue to the business. They want individual attention and prefer to be recognized right away whenever they make a transaction.

Sales or discount-oriented customers are those who frequent your business whenever there are promos and discounts. While you can already consider them as regulars too, they are only keen on buying products that have been marked down or have an originally low price. They are particularly interested on seasonal deals and free items that come along with their purchased product. Some business organizations hold monthly or even weekly discount sale on their establishments in order to encourage such customers to frequent the places.

Spontaneous customers are fewer in number. They would most likely visit the shop to buy things on a whim. Sometimes, catering to such customers can be difficult as they do not have any product or service in mind. They would have to be shown all the things that the establishment is offering before settling on one purchase or service.

Need-based buyers are quite opposite to the spontaneous patrons. They would go into the store and buy just exactly what they planned to have for the day. While they are frequent customers, one would find them difficult to entertain as they only focus on what they want. While they bring in sure income for the business, they are not interested in switching into other products or trying the newly displayed ones.

Spectators and wandering people are relatively new potential clients for the business. However, they are the least profitable groups since they only come in to inspect and look at the services and products that you offer. The term ‘window shoppers’ can be used on such potential customers since they investigate the features of what you offer but do not show any interest in acquiring them.

Having curious people in your business can be a positive chance to earn money, as long as you properly attend to them and inform them about the features of the service and products.

When these types of customers become dissatisfied with a service provided to them, they would eventually turn into complainants. It is best to profile a complainant immediately and respond to him in the best way possible.

An aggressive customer is a person who wants to have control in a situation. They focus more on displaying emotions than actually obtaining a solution. It is best for the staff to remain calm and avoid matching his or her aggressiveness. Heightened emotions only stir up trouble resulting to permanent damages to the business’ reputation. Wait for the complainant to calm down.

Afterwards, apologize for what had happened and offer objective choices to the customer in order to make him feel that he is in control. The customer may hurl insults in order to hurt the establishment but always remember that such harsh words should not affect your decision-making.

Sometimes, the business may encounter a passive customer. Such customers are not afraid to take their disappointments in public, particularly the social media sites. While you may not hear them complain about your service directly, they can easily broadcast their sentiments “on-air”. Usually, such passive complainers are the most dangerous in the business. When things like these happen, you should consider responding publicly as soon as possible. Apologize for what happened and offer a positive resolution to the problem.

V.I.P customers also pose a problem. If your business can only accommodate a small number of customers at a time, a few would complain about being ignored. It is a mandate that customers deserve a quick response and immediate action to their needs. However, it is not fair to drop everything and single out a certain customer just because he or she thinks his or her situation is above everyone else.

When dealing with a V.I.P, you have to strive hard to cater to him as fast as you can, so you can also attend to others. If you are not capable of attending to such, refer him to another co-worker who has fewer tasks and can give him proper assistance.

Timid customers can also pose a problem. Such customers who give a way too general instruction to an attendant sometimes think that it is enough for them to be understood. Introvert customers are friendly but they can also be indecisive. They would grow uncomfortable when pressured to buy something.

It is best for someone to ask them questions in order to find out what they really want. If the customer is not willing to add any more information to the demand, show him or her variety of products or services you are selling.

Finally, there are practical customers. These customers are critical and organized in their complaints. They can address their situation more calmly and precisely in comparison to other complainants. In order to solve the problem, give enough information and detail. With this, both you and the customers are able to reach a common ground and a resolution.

Regardless of who is complaining, a good business organization must be able to respond to it promptly and positively. This is to ensure the clients’ image of the business and the reputation it yields. Bear in mind that you cannot please everybody, but you are committed in doing the best in your business.