Management

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Manger is ultimately responsible of employees work

HOW TO MANAGE A BUSINESS

Cash flow, credit and expenses

Cash flow

Improving cash flow

Reduce cash paid out on salaries and wages

Make sure inventory is not lost, damaged or stolen

Do not tie up cash in excess inventory

Be insistent on collecting overdue payments

Don not allow customers to buy on credit is they have overdue nills

Offer discounts to the customers who pay in cash

Collect payments from customers as soon as posible

Take advantage of trade credit offered by other businesses

Three-step process

3-Sustract expected cash outflows from expected cash inflows

2-List and total expected outgoing cash payments for the next month

1-List and total any expected incoming cash payments over the next month

The cash that is coming into a business must be sufficient to cover the cash that is flowing out

Cash budgect

Record of which a business owner forecast incoming and outcoming in a period of time

Credit

It is the granting of stended time to pay off a debt. To buy on credit means buying now, paying later.

Consumer credit

When a business gives consumer extended payment time for purchased goods and services

Trade credit

When one business gives to other an extended payment time for purchased goods or services

Managing expenses

It is a 2 step process that involves

Action

Once a manager knows the extent of existing expenses, he or she can act to reduce future expenses

Knowledge

A manager must be knowledgeable about the expenses the business incurs

Management functions

Controlling

Ongoing process of setting performance standards, mesuring actual performance, comparing it to the standards and taking corrective action if actual performance does not meet the standards

Directing

Ongoing process of leading, influence and motivating employees so they will work together to achive specific goals

Delegating

When the leader gives complete freedom to the employees to achive the task

Democratic

When the leader seeks input from the employees about the task but taking the final decisions

Athoritarian

When a leader tells what needs to be done and how to do it without seeking for advice

Organizing

Ongoing process of arranging and coordinating resources and tasks to achive specific goals. It puts people and other resources of a business in the right places to maximece production

Planning

Ongoing process of setting goals, deciding when and how accomplish them

Types

Operational plan

Details the everyday activities that will achive goals of the tactical plan

Tactical plan

Specifics major steps for carrying out the strategic plan. It can cover a period of less than a year and includes target dates for acomplishing goals

Strategic plan

Long term goal. 3-5 years in the future. About what needs to be done and the general way in which it will be accomplished

Management is the skillful use and coordinartion of all the business's resources

Employees

Materials

Technologies

Equipment

Facilities

Money