Golioth Enterprises Consulting Ltd.

Unlimited Accounting Support for your Green Business!

Are you a good leader ? Management styles…

Written By: Golioth - Nov• 18•09
Are you a leader or follower?

Are you a leader or follower?

Recent events have made me ponder as to why certain people are great leaders and others not so much. My career allows me the greatest opportunity of all;  going into other businesses and assessing what it is they are doing that is benficial and non-beneficial to their business. This is the greatest job ever! Not only do I get to analyze other people’s businesses; in the process I learn more and more everyday what is good common sense business practices and what is not. We will look strictly at the soft skills side today.

The focus of this blog is management styles. The most common types seen is micro management and macro mangement. Neither is preferrable, it is preferrable to be a manager that is involved in every day to day business that provides a source of leadership but is not above doing the most menial tasks. An attitude of helping the many not the few is necessary; as well as to lead by example. In this matter the question is: if you are not willing to put the effort in doing whatever the task requires and be engaged fully in the task, then why should your employees want to put in the effort?

1) This matter requires much attention if you are running a business and not achieveing the goals you are wishing to achieve. If as a manger you take the attitude of menial tasks are beneath you my experince over the last 7 years of my career has shown me this results in macro management practices. This results in a very lax and dis-associated form of management and the manager is not aware of what the everyday processes of your staff are. This also leads to staff creating their own business processes to take care of daily business even though they may not congrue with management or stakeholder’s goals. What you need to do as a respected and valuable leader is lead by example; and support and provide confidence in your team. Also very important… if there is grunt work to be done and you are a manager get involved! No one likes doing grunt work but do not delegate out of sheer attitude of “oh, this is beaneath me” and request the work to be done by staff while you sit in an office somewhere not doing much.

2) Do not micro manage! Micro managing and not believing in your team is demoralizing and condascending to say the least! It is like being in your teens and having parents always looking over you shoulder not trusting you. This is very detrimental as it makes employees not want to excel at and feel passionate about their job. If they were hired based on attitude and qualifications then allow them to prove their qualifications at what they were hired do.

3) Be a calm and level headed manger that instills an attitude of leader of the pack and show love and respect for your co-workers; you will notice that they are more than willing to ablige to complete the daily tasks at hand. Be a compassionate human and an inspiring leader at the same time.

I hope this discussion sheds some important points to light. Until next time happy networking.

Abundance and prosperity.

Saverio

Golioth Enterprises

Unlimited Accounting Support for your Green Business!

Best business practices Part 2

Written By: Golioth - Nov• 16•10

Hello all, I wanted to outline in part 2 an aspect that is very important item to a business’s agenda. In best business practices part 2 we will deal with mapping out a strategic business plan and cover the different aspects of what needs to be included in a business plan as a mapping and gateway to success. There are many outlets/resources that will offer a blueprint for business plans, but as always trust your own judgment and intuition as to the vision you have for your business. Definitely looking at what roads have been paved in the past is an important tool; but re-writing your own blue print can be done by your organization and your organization only. The pertinent details lie with no one but you and possibly your business partners.

When looking at developing a business plan sometimes it can become a daunting task and a lot of people just simply give up in the midst of developing one because it can take on a life of its own and you can get lost in the details of it all. To make our lives easier why not start out by making a list of what needs to be included.

1) Create a business profile on paper:

  • Proper business name that you are going to use for your business
  • Is there property that will be used?  Is it leased or owned?
  • Date of business establishment
  • Form of business ownership  (Partnership, Corporation, Joint Venture or other?)
  • Who are the business owners?
  • Product and services your business provides
  • Industry Sector (Retail, Manufacturing, Service, Other)

2) What level of involvement will you have in your business? (Hands on full time or hands off approach)

3) Perform a SWOT analysis of your new business

Strengths


Opportunities

Weaknesses


Threats

The above chart when being filled out will map out your business in the marketplace. Some research and breadth of knowledge of your business and markets will be involved. You will begin to map out your company’s destiny by knowing what advantages and disadvantages you might or might not be facing. You will have to get to know who are your major competitors and your major suppliers.

Contact suppliers in the area to find out how readily available your stock supply and what vendor payment terms you will be facing. How easy is it to switch suppliers if need be? Markets and circumstances change in the marketplace so do not get caught by surprise; make yourself aware and know your business and know your marketplace!

  • Who are your customers? Do you have a small niche for a customer base or is there a broader base of customers your product would entice? Will your business be strategically located to draw in customers?
  • What are your terms for granting credit to your customers and what are your company’s collection policies?
  • How large is your share in the market? How large is the market and demand for similar services or products you offer?
  • How do you plan to advertise? Do you have a brand specific name that can be carried out and grown in terms of market share?
  • What is the product life cycle of your product or service you offer?

4) Long term strategic plan and business objectives listed

  • Short term plan 1 year – define you key business objectives that need to be adressed
  • Long term – where do you see your business in 5 to 10 years

5) Financing needs – this is where a solid business plan comes into play. If the business plan is not solid then  you may very well find yourself running short of meeting your goals or possibly exceeding your set out goals.  If  there is a great amount of financing needed you may have to find private investors or go through financial insti-   tutions. Regardless of the method used the business plan should sell itself.  Cash flow will be imperative and will be king! Proof of such and the amount of revenue that your product/service can generate is imperative.  You will have to know exactly the reason and amount of funding required if necessary. Some questions to ask yourself:

  • What is the funding for?
  • Do I have a strategic well thought out plan how to use the funding I receive?
  • If equipment or work assets are purchased, do I have financial measures mapped out to provide key performance indicators on payback periods for initial investment? Internal rate of return? Net present value of the project? Future cash flows expected?  Are there pending revenue generating contracts that can be agreed to and delivered pending the expansion and purchase of new equipment?

I realize that all of the above is a lot to take into consideration, and my purpose for writing this has not been an exercise in creating fear and trying to discourage you from moving forward into a path of success; in fact quite the opposite. What I have written above is wisdom from the years of experience I have witnessed in working with many of my clients and seeing that they had failed to take these steps and were not able to mitigate the risk exposure to their businesses.  A simple plan of sitting down and going through these very questions helps you and your business mitigate your risk and gravitate towards reaping the rewards of success. Until next time.

Abundance and prosperity,

G.E.C. Ltd

Best business practices Part 1

Written By: Golioth - Oct• 02•10

Hello all, I wanted to share some of the insights that are often missed in the procedures of your every day to day business. G.E.C. Ltd. has now been a long term strategic partner to its customers and has also learned from other organizations what not to do in the course of every day to day business. I will explain shortly what I mean by this. In essence many of the organizations that we have assisted over the years have had some essential failings that gave way as root causes to the problems they have experienced. Now when you are in business what do these initial root causes result in? The end result will be loss of credibility, wealth and health of your business.

Now when we are examining the last sentence in the above paragraph are those 3 items not the whole reason why you are in business in the first place? Were you not seeking wealth? Credibility amongst your customers and your peers? Strategic long term health of your business with revenue streams guaranteed for many years to come? I think it is safe to say that the answer to those questions is YES! 1000 times YES. It is only natural to want all those criteria to be met in the course of running your business, and yet many businesses suffer from the opposite in lacking wealth, credibility and prosperity. This is symptomatic of a larger problem; the problem is lack of planning and strategically mapping out your business structure and indentifying your key processes, business performance indicators as well as market research indicators.

In the following days to come I will be outlining some of key examples of those symptomatic larger problems so we can hopefully prevent your business from suffering from those same problems that we have seen other businesses incur in the marketplace.

Abundance and prosperity,

G.E.C. Ltd

Supporting NFPO’s through your business

Written By: Golioth - Jan• 30•10
Give to local charities

Give to local charities

Hello to all, I wanted to share some information that you might find interesting. Do you contribute to charitable organizations (NFPO’s) and suprised that as a personal income tax payer don’t get the full tax credits you think you should get? Well there is a way to get around that! Revenue Canada allows you to contribute up to 75% of you corporate earnings to charitable organizations and write off the amount dollar for dollar as oppposed to the 29% deduction you receive above and beyond the $200.00 floor amount set by CRA. Question is would you rather have tax deductions dollar for dollar through your business or 29% on your personal return. I like the dollar for dollar becuase there’s 2 benefits. 1) Giving makes you feel good and you are assisting the process of sustainable living for all! 2) Giving makes your company look good! In the eyes of public image you become top dog! Need I say more? Giving is a wonderful thing and under the name of your corporate entity you get so much more bang for you buck. This is truly a win-win situation. Now remember you cannot create a loss by giving away to charity; but it is allowed up to 75% of your net income as allowed per you Part IV corporate income tax. For more information check out: Charitable Donations p.48 If you overcontribute do not fret! As per chance Revenue Canada has a resolve for this. The amount unused above and beyond 75% of your net income can be carried forward and used in a future period creating additional deductions in a year or two down the road; up to a period of 5 years. When you think about it, it is brilliant. Next year when your business is booming greater than ever before you can have a greater deduction to show for it! Until the next post, happy networking to all.

Abundance & prosperity.

Saverio

Golioth Enterprises

Unlimited Accounting Support for your Green Business