How to Think Differently in Business

To hit gold in business, you have to think gold. What is your business all about? How do you intend to maximize profits? Here are tips on how to think different in business:

Think back to the future

Don’t wait till the harsh business storm hits your business; rather, always think of what to do better or next. For example, what are the things you need to put in place to ensure business growth? What stage is your business on the business chart, that is, in areas of development, growth or decline? Is your business vision realistic? What is your current profit margin? What is your intended profit margin? How do you intend to speed up your productivity? Evaluating your business, keeps you prepared for the future.

Believe your ideas are valuable

Always think your glass is half full. Think about possibilities not only about likely constraints. As a business owner, you have to nurture a positive mental attitude; believe things will work out fine. If there are possible risks, device means to avoid or manage them. Risks are unforeseen, but you can plan ahead to avoid or mitigate them. Being positive in business enables you take a chance on yourself, be bold to take calculated risks, and believe you are adding value, even when the numbers say otherwise. That is a way of thinking differently in business.

Dig beyond your current offerings

Do not just view things on the surface. Think intensively and carry out research on other ways your business can benefit your target market. Reflect on the true realities of where your business stands at the moment. What are your business challenges? Classify them and analyse them to see how you can make a difference. Outline your business SWOT analysis (Strengths, weaknesses, opportunities and threats). Go beyond the surface; be realistic.

Your competitors are watching

Understand your business environment; be familiar with your competitors’ strategies – if you are not, you can bet that your competitors are doing their homework. What resources do they have that surpasses yours? How can you leverage to collaborate and partner to get the necessary resources? What’s the best way to build more goodwill? Do a survey on your business, and be cautious of the events happening in your business environment. It’s business, so be prepared for the competition. Business is about profit making and goodwill, be focused on these objectives.

Create a war-room

Now that you know who your competitors are and understand your type of business. Identify the threats and evaluate them. Compare your business to your closest competitor. Be battle-ready. Draft a graph of your sales and profits. Can your business survive in business storm or in an unstable economy? Figure out what you can do better? What is not working? Are your key employees performing as expected? Carry out a performance appraisal. Take action: pave the way for more business improvements, do some advertisements, up your business game. Remember it is a game of profit, and that should be your aim.

Thump your chest

What makes you outstanding makes you great. Build on your business competence and promote it. Every product or service must have its own uniqueness, that thing that makes it different from others. Device means to make your business goals and objectives unique. Distinctive competence is that special attribute that shows how your business is similar to your competitors, but different in aspects of branding, concept and product offerings.

Business is nothing without profits. A business seed can only grow if the business soil is fertile, and the fertility starts from your business thoughts. Be better by thinking differently.

Motivation – Keeping Your Visions Visual Will Keep You Focused on Your Business Goals

An 8 Step Process For Designing A Chart of Accounts

Many business owners and bookkeepers are confused by what accounts should be used in their chart of accounts. When there is unclarity about the design of the chart of accounts, one of three things usually happen:

* There are not enough accounts. When this happens, there isn’t enough detail in the financial reports to get information about what is happening in the business.

* There are too many accounts. This leads to too much detail on the financial reports, so they are difficult to read and use for high level decision making. This can also cause bookkeeping errors as the bookkeeping staff can easily become confused about where to record transactions.

* The account names are confusing. This also can lead to confusion and inconsistency in recording transactions. In addition, accounting staff and business management may not be on the same page with how accounts are being used.

How do you design a chart of accounts to ensure you can get good, clear, and consistent reporting information? First, you must realize that you’re in control of the chart of accounts and it’s up to you to design it. You could just have one account on the profit and loss statement called “expense”, but that wouldn’t give you good information, would it? We have to find the balance between too little and too much detail. Here’s an 8 step process to help you determine what should be on your chart of accounts.

1. If you’re designing accounts for a new business, begin with a standard chart of accounts (QuickBooks has several to choose from for various industries) and then add to it as described below.

2. Add accounts for income that is specific to your business and occurs regularly. You can have just one revenue line, but chances are you earn revenue from more than one type of product or service. Use a more general account for anything that does not occur regularly.

3. Add cost of goods sold accounts that correspond with your revenue accounts. If you have web design revenue, you would also have web design cost of goods sold.

4. Add expense, asset, and liability accounts that are specific to your business and make sense to you.

Now you have a chart of accounts for your business, but we’re not done. You need to review it again while asking the following questions:

5. Do I really need this account or is there a similar account where the information could be gathered? If so, would viewing those two accounts together be more helpful?

6. Is it obvious what types of transactions would belong in this account? If your account name doesn’t make sense to you or the accounting staff, rename it to something that is logical to you.

7. Why will I need to see this information on my income statement or balance sheet? How will this information be used later? If you don’t really need to see it separately, perhaps the data belongs in another account.

8. Is there another way to get this information if I use a more general account type? For example, could you track departments by class in QuickBooks and eliminate accounts for specific departments? If so, set up the other tracking mechanisms and utilize the generalized account.

Each time you think you may need to add an account to your chart of accounts, ask yourself these questions first. Selectively adding accounts will lead to better visibility into your operations. If you’re unable to answer the above questions to guide your chart of accounts design, you should have an accounting consultant help you with the process. If you’re not getting the information you need from your financial reports, a redesign of how you gather and view information may be in order.

Copyright (c) 2010 Kelly Totten