MANAGING A BUSINESS
Management- Skillful use and coordination of all the business resources in a systematic and effective way to achieve particular goals
HOW TO MANAGE A BUSINESS
PLANNING
STRATEGIC PLAN
lays out a broad course of action for achieving an specific goal
Usually done by top-level managers
TECTICAL PLAN
Specific major steps for carrying out the strategic plan.
It includes target dates for acomplishing goals.
Usually done by mid-level managers
OPERATIONAL PLAN
Everyday activities that will achieve the goals of the tecnical plan.
Usually done by low-level managers (supervisors)
ORGANIZING
Process of arranging and coordinating resources and tasks to achieve goals.
It puts people and resources in the right place for maximize production and minimice costs.
DIRECTING
Motivating employees for achieving goals.
Interpersonal skill
Team building
Authoritarian
Democratic
Delegating
CONTROLLING
Ongoing process of setting performance standards, measuring actual performance, comparing it to standards
MANAGING EXPENSES, CREDIT & CASH FLOW
MANAGING EXPENSES
Knoledge
Action
THE ROLE OF CREDIT
Creditor
Credit terms
FORECASTING CASH FLOW
1 List and total any expected incoming cash payments over the next month
List and total expected outgoing cash payments for the next month
3 Substract expected cash outflows from expected cash inflows
IMPROVING CASH FLOW
take advantage of trade credit offered by other businesses
collect payments as soon as possible
offer discounts to people who pay by cash
Not allow customers to buy on credit if they have overdue bills. Insist they pay in cash
Be insistent on collecting overdue payments
shorten the payment timie for customers using credit
Not tie up cash in excess inventory
make sure inventory is not lost, damaged
reduce cash paid out in salaries and wages. If practical, eliminate positions that are not needed and reduce the hours worked by part- time employees