SELF EMPLOYMENT – Should You Leave a Job to be Self Employed?

Posted by GuestPoster | Posted in Articles | Posted on 18-04-2012-05-2008

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SELF EMPLOYMENT – Should You Leave a Job to be Self Employed?

Have you ever had a tough day, week or month at work, and found yourself looking in the mirror and asking yourself – “What am I doing with my life?”  If so, you’re officially a member of a rapidly expanding fraternity (and sorority!) of folks who are weighing the costs and benefits of their salaried job vs. self employment. Yes – the health, life, disability and retirement benefits of a salaried job are necessary, but ……..

I’m tracking with you on this issue. I’m an adjunct MBA instructor at a great small University in the evenings. I teach Organizational Behavior and some other, HR-related courses where we talk about – people and work. One of the discussions I always enjoy is on Hertzberg’s Two Factor Motivational Theory(a) – where we discuss the “tipping scale” of job satisfaction. I ask my students to visualize a a legal scale – with Job Content (what the actual duties of the job are) on one side, and Job Context (everything outside the actual job duties such as supervisor, culture, pay, etc.) on the other. Which side would you prefer the scale tip toward? Job Content – i.e. would you stay at a job with a terrible culture and a terrible boss if you really liked what you did? Or, would you stay at a job where your job duties were less than what you liked, but you had a great boss, benefits, friends, etc.? The point where that scale tips is different for all of us – but the essence is, wherever our preference falls, we won’t be sufficiently motivated outside of it.

OK – enough MBA stuff – but the concept is really applicable; what motivates you may not motivate me – and there’s no right or wrong side of that scale. It simply means we’re different. And because you’re different, you can be utterly de-motivated in an environment where I find fulfillment.  It also means it’s both of our responsibilities to land where we’re motivated, and – for many people- that’s NOT in a corporate environment – and that’s OK.

So – you’ve done some soul-searching and contemplating,  and you’re now looking into leaving the corporate grind and starting a self-employed business? Excellent! Let’s explore this a little further and look at a few, very basic questions you’ll need to answer as you move forward:

1.  Why be self-employed?  Is it the opportunity to start with a clean slate – doing what you really want to do? Flexibility of schedule? Your own financial goals? These are all great reasons that should keep you motivated when you hit bumps in the road. Bear in mind that self employment is hard work, and there are no free rides. If you understand that form the outset – you’ll be fine.

2.  Would you enjoy running all phases of your own business? Payroll, taxes, sales, shipping, etc? These are things that you typically don’t have to handle when working for somebody else – but they’re all part of the package if you want to be self employed. Nothing scary, just some facts – are you on board for that?

3.  How will you make money? Do you have a business model? If so, have you researched it thoroughly to determine who your TRUE customer will be? Who is your competition? What will the margin on your offering be? In essence, have you thoroughly researched all aspects of how to be self employed and make a good living at it? If not, you may want to research various aspects of online self-employment, where you’ll find multiple business models with low startup costs and tremendous potential for growth?!

4.  How about your benefits? Leaving your employer will mean you will soon be the proud owner of monthly health, disability and life insurance bills as well as a retirement account.  Have you accounted for those costs above and beyond your salary requirements? Everybody and anybody who is self-employed must account for these costs, as well. This is one reason why I recommend starting part-time – see the Health, Life, Disability Insurance and Retirement articles on this site for more inormation on those topics. These benefits are a big reason I recommend – if you possibly can to take some of the financial pressure off while you build your business!

5.  Is your significant other on board? Starting a self-employed – or any type of business – is going to place demands on your time; does your spouse and/or family understand and support that? Is there a way that you can involve them in building your business? Can they perform some research for you? Can they write some articles for a website? Any way that you can engage them and give them a stake in your vision will get them on your team and help them be for you – not against you.

6. Will you miss the socialization of a job? This may sound funny, but alot of people enjoy the comaraderie of the workplace. When I broke off to start a consultancy, I was somewhat surprised at how I had to adjust to working by myself – and I’m no social bug. I made the adjustment, but some people don’t. This consideration may not phase you, or it may be a rel concern for you – or you may be somewhere in between. Whatever the case, just be aware that working for or by yourself is a different dynamic than the workplace.

So, those are some very real considerations from somebody who is considering a self-employed vocation. You may not have thought of some of these issues – but that’s OK – it’s better to think about them now – when there’s no risk – so your expectations and goals are realistic.

Hope this helped!

Increase Productivity – Its Importance

Posted by GuestPoster | Posted in Articles | Posted on 16-04-2012-05-2008

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A company desiring to perk up its productivity must take on particular steps that can ensure to provide the preferred outcome. Among the things that the executive staff have to give significant notice is the production and output of the company as a whole. As has been recognized, to intensify the output of a business, specific things have got to be enhanced in the place of work. One of these is to increase productivity of employees. Productivity is described in economics as the degree of the production yield for every unit of production effort. It simply means the relation of input and output in the production process.

Production is the method of turning resources into finished goods for the utilization of end users or for consumption. Technology is required in the course of production. Actually, the development in technology has very much helped in improving production. Therefore, you can absolutely say that the facet of technology is incredibly significant in the entire equation. In addition to technology, there is another part that is especially hard to do away with. This is the facet of labor. Human resources throw in a lot in the development of output level. Moreover, you can even say that the source of power in a company is human resources. Other resources, for example funding and technology, can have secondary functions but these are still important too.

To capitalize on human resources is to increase productivity. To intensify production, an industrial unit ought to have the essential number of workforce to hit the production objective. To intensify production, it would be vital to add to the number of personnel. But adding to the number of personnel does not constantly result to improved output. Conditional on the characteristics of a company, a lot of businesses decide to reduce the number of personnel in their industrial units. The increasing labor expenses in urbanized countries can consume much of the production expenses resulting to reduced competitiveness in the cost of particular products. Still, minimization of labor can also result to other drawbacks.

Rigorous training and unswerving improvement of learning levels and skills can assist in stepping up the output level of personnel. Humans have the ability to get better and discover new things. Companies have the liability to give a boost to the skills and level of knowledge of their staff. Motivation to toil can also result to amplified efficiency. Incentives and enhanced working state in the workplace can add to the enhanced yield level. And in motivating people, most managers follow the GROW coaching model. They believed that when an employee is happy in his place of work, he is apt to be more helpful.

Improvement of skills and enhanced awareness of novel technology are crucial to intensify the production level of individuals. The labor force must have constant development. Improvement in good technology can help out in attaining work leverage. To increase productivity, it is imperative to report the indispensable resources. The resources may perhaps include human ability and technology.

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Finance For Non Financial Managers – Some Important Terms

Posted by GuestPoster | Posted in Articles | Posted on 16-04-2012-05-2008

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Your knowledge and proper application of business tools on hand will establish the extent of the success of the business. Not considering the size, each business requires tools to set things up, manage them and appropriately run them. A number of those tools are entirely fiscal in nature. A reasonable knowledge of finances is essential for each leader no matter what profession he or she has. You close your mind on your fiscal operation at your own risk. You are capable of doing better, of making knowledgeable and premeditated risks or choices whenever you are familiar with the monetary repercussions.  Every choice you will make has a monetary repercussion – it will either add to your fiscal position or decrease your financial equilibrium. You must never be astonished as to how and why you appear not to have sufficient funds for your requirements when you are not able to keep an eye on profits and spending patterns.

This emphasizes the importance of managers having knowledge of finance basics. It is recommended that executives should be encouraged to undergo some form of training on finance for non financial managers. This can help them much in truly living out the ideals of a results based leadership.

To start, let us take a closer look at some of the common terms used like the income statement or what is also sometimes referred to as the profit and loss statement. Profit is the amount of money that remains after trading or selling merchandise or services. It is the sum of all sales invoices minus all the expenses involved in the sale.

A cash flow statement will clearly show what has happened to the money that you have been generating. And here, cash means cash on hand or hard cash. This includes petty cash and also cleared funds in the bank.

A balance sheet is a document that presents asset levels. Whenever you buy assets for the business, the value should be taken note of as per invoice. Over time, the value of the asset goes down or depreciates. It is also possible for its value to increase or what is referred to as appreciation. It is vital to keep track of the value of assets as it can help to determine when you need to replace the asset. A balance sheet will keep you abreast of the value of the business. It is disastrous to form an opinion about the business based on the bank balance alone as bank balance can mean money that is simply waiting to be paid out. A balance sheet takes in fixed assets like plant property and equipment, vehicles, and current assets (cash in bank and stock levels for example).

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