|Vancouver Olympics Closing Day (click link)|
Finally, we reached the last part of the “7 Basic Things You Need To Know During Start-up Year”. It was so much fun writing the last 6 issues, and hopefully they have been helpful information for new entrepreneurs, and for some existing ones.
|At Downtown Vancouver during Closing Day of 2010 Olympics (click link)|
Managers should monitor items in the balance sheets that are susceptible to fast deflation, like long-term assets such as fixed cost, investments in stocks, and derivatives (financial instruments). Also, keep an eye on your stocks and bonds for dilution and higher interest on long-term liabilities. Though owners enjoy the tax deductibility of interest on borrowed funds for investment, but for how long you can pay these higher interests. Market risk can definitely affect your business, especially when it becomes larger, thus extra monitoring is crucial.
In times you might expand your business and have subsidiaries. As a parent company, though over all you have healthy net income showing on your consolidated financial statements, but keep an eye on subsidiaries that are losing money and deal with them separate for improvement. Likewise, in some cases, your income statement might be showing a net loss because of a huge amount of depreciation or/and losses related to your fixed and related assists. Keep an eye on the difference between costs vs. expenses that affect your net income.
Most managers are problem solvers, but there will be times when they get burn out and lost their motivation. Therefore, directors should be able to step in this situation, encouraged and inspired managers and all staff working under them to always think the best for the company. The company might be able to generate additional income through expansion of the business, produce and sell other related products, hiring more people for support. Always remember, good people are assets to your company. Try to help and support them when they need you. So, if the business is doing well, probably an increased in wages, or provision of added benefits, like bonus plan, stock options, or other incentives on productivity are not too much to ask. They are definitely a few of driven factors in the retention of staff, long-term existence and profitability of the company.
Please feel free to leave comments/inquiries or you may contact me at: