Current Meeting Topic
Last fortnight we thought about business financials. This fortnight we invite you to share with the group what you have learnt from this exercise.
Financial Management of a small business involves understanding, tracking and reporting all the financial information involved in running a business. It is necessary for every business because every decision, in the end, is a financial decision.
It provides you with an accurate view of where your business has been, where it’s at now and projects where it will be in the future. Not managing your financials is like having no dashboard in your car. Your car’s dashboard provides you with vital information about the running of the engine, the fuel gauge, speed and number of revs. All information that is necessary if you want to use your vehicle as a means of transport successfully. The same is true in your business. Without a clear picture of your companies financial information, you are driving blind.
Financial management also helps you grow and adapt your business to a changing environment. You can accurately report on past performance while planning for future spending and initiatives. Without any form of financial management, you miss the opportunity to correct behaviour and celebrate your successes.
A financially savvy business will be:
• Clear on its value and pricing
• Have an effective invoicing and debt management system
• Regularly monitor cash flow
• Have a budget
• Have money set aside for IRD (sometimes grudgingly!)
• Have its bank accounts (i.e., separate from personal)
So do you have a financial roadmap for the business?
Negotiation is something we do in our everyday lives, whether it be with our partners, kids or in business.
As a business skill, it is convenient to be a confident negotiator, working out a mutually beneficial arrangement can secure long term business and is essential as part of any collaborative relationship.
It is a process by which compromise and agreement are reached.
The principles of fairness, seeking mutual benefit and successfully maintaining a good relationship are the keys to a successful outcome.
Negotiation typically involves:
• Clarification of goals
• A Win-Win outcome
• Implementation of a course of action
A positive open minded attitude is key to negotiation, as is compromise. A good negotiation involves questioning, listening, clarifying and agreeing. It’s all about working out the ‘ins and outs’ and making sure it is a win for everyone. A successful negotiation will see all sides feeling like they have been heard and they are gaining something positive or of benefit.
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