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Do you have what is needed to go through a recession? Here are the characteristics that homeowners have to go through a difficult time:
This article is quoted from 'Ultimate Home Based Business Handbook', by James Stephenson, available at the Entrepreneur Press.
Regardless of the definition of your success, there are a number of common characteristics that a successful entrepreneur has. You can give a check mark on each of the characteristics that you might have. In this way, you can see how you structure it. Even though you don't have all these characteristics, you don't need to worry. Most can be learned by practice and by developing a winning mentality, especially if you determine the level and you apply it to yourself, through strategic planning, to achieve goals in measurable stages.
Home Businesses Must Have
Like the other activities you are working on, there are a number of necessities needed to be successful in the chosen activity. To be able to drive in a public place legally, someone must have a SIM; in order to win a match, have to practice and practice; in order to retire comfortably, one must become a knowledgeable investor and actively invest in his retirement. If your goal is success in business, then the formula is not much different. There are several imperatives that must be fully developed, applied and managed for the success of your business. There are many imperatives in business, but this article only discusses a few that I believe are compulsory, more important is needed when starting, running and growing home business profits.
1. Do what you enjoy
What you get from business in the form of personal satisfaction, financial income, stability and enjoyment is the value that you will place in your business. So, if you don't enjoy what you are doing, then it will likely be reflected in the success of your business - or your next success. In fact, if you don't enjoy what you are doing, your chances will not be successful.
2. Work seriously
You cannot expect to be effective and successful in business unless you are absolutely sure of the business and the product or service that you are selling. Too many home-based entrepreneurs who fail to run their business seriously enough, easily switch and are not motivated and sharpen their sense of smell. They also become a meal for those who see a home business with one eye because they do not work in office buildings, shops, or factories. Few do skeptically, knowing that a number of people who work from home, and produce good annual income, have surged in recent years.
3. Plan everything
Planning every aspect of your home business is not only a necessity, but also builds habits that entrepreneurs must develop, implement and maintain. Business planning is very important because it requires you to analyze each business situation, conduct research and collect data, and make conclusions based on facts obtained from research. Business planning is also a second function, where you aim and how to achieve it, on paper. You can use the plan you made both as a map that will take you from point A to Z and as a measure of the success of each individual plan or segment in the plan.
4. Manage money wisely
Cash flow is the pulse of any business. You need it to buy inventory, pay for services, promote and market your business, repair and place tools and equipment, and pay yourself so that you can continue working. Therefore, all home-based entrepreneurs must be wise financial managers to ensure the cash flow continues and the bills are paid. There are two aspects of wise financial management:
The money you receive from the client as an exchange of goods or services that you provide (income)
The money you spend on inventory, supplies, wages, and other items needed for your business operations.
5. Ask for sales
Home entrepreneurs must always remember that marketing, advertising, or promotional activities are not useful, regardless of how smart, expensive, or precisely targeted they are, except for one simple thing that is resolved - asking for sales. This does not explain that being a great salesperson, advertising copywriting or public relations experts is not a big asset in your business. However, this skill is meaningless if you don't actively ask people to buy what you sell.
6. Remember customers
Your home business is not the product or service that you sell. A home business is not the price you wear for goods and services. A home business is not about competition and how you beat it. Your business is a customer, or client, period. After all, your customers are those who decide whether your business will boom or break. Whatever you do in business must focus on customers, including policies, guarantees, payments, working hours, presentations, advertisements and promotions and websites. In addition, you must know well who your customers are.
7. Become self-motivator
One of the biggest myths about personal or business success, is the personal ability, product or service that will be discovered and acknowledged by the community that might prevent others from buying what you sell. But how can this happen if no one knows who you are, what you sell and why they have to buy it?
Self-promotion is one of the most important marketing tools, but most fails to be used where the majority of entrepreneurs immediately ignore it.
8. Design a positive business image
Everything you have except the moment you missed to make a positive impression and be remembered by the person you are doing business with. Home entrepreneurs must get out of their way and always try to design the most professional business image. The majority of home-based entrepreneurs feel that there is no need to create an elegant office or shop or showroom to impress and impress customers. Instead, they must rely on creativity, creativity and pay attention to the smallest details when creating and maintaining a positive image of their home business.
9. Get to know your customers
One of the biggest features and the most significant competitive edge of a home-based entrepreneur who can beat a big competitor is that he is able to provide personal attention. You can call it a high-tech reaction, but customers get bored and tired of listening to their information somewhere on the computer and have to be retrieved, or are required to enter a series of numbers that eventually arrive at the right department just to listen to voice mail — where they never call back.
Home entrepreneurs can answer the phone, get to know their customers, give personal attention and win business by doing so. This is the fact that most businesses (80%) come from returning customers rather than new customers. Therefore, along with attracting newcomers, the more you do to approach customers, you will do better in the long run and giving personal attention is the most valued and remembered in this world of sophisticated technology.
10. Level of game land with technology
You must avoid being trapped further in the world of technology, but you also have to know how to use it. One of the most amazing aspects of the internet is that one or two people who run it from the basement can have a great website like a company worth $ 50 million, and no one knows the difference. Make sure you continue to pursue high technology as long as it suits your needs. The best technology is what helps you, not to impress others.
11. Build a top-notch business team
No one can build a successful business alone. This is a task that requires a team that has a commitment like yours to the business and its success. Your business team can include family members, friends, suppliers, business alliances, employees, sub-contractors, industry and business associations, local government and communities. Of course the most important team members are your customers or clients. Some or many of them will say how your business will run and risk the future of your business.
12. Known as an expert
When you have a problem that needs to be solved, you are looking for someone else's advice or looking for an expert in their field to help solve your problem? Of course, you want the most accurate information and get assistance. You usually seek expert help to solve problems. You call a plumber when a hot water tap leaks, a real estate agent when selling a house or dentist if your teeth hurt. Therefore, this only leads to the reason that you are known as an expert in your business, more and more people are looking for you to get your expertise, create more sales and referral opportunities. The impact, known as an expert is to have another style to get new business prospects, and vice versa. Instead of finding new and quality people to sell, these people are looking for your expertise.
13. Creating competitive advantage
A home business should have a unique sales proposition. This is more than just a straightforward question asking an important question, "Why do people choose to do business with you or buy your product or service rather than doing business with competitors and buying products or services?" In other words, what aspects or combinations of aspects separate your business from competition? Are services better, longer guarantees, better selection, more flexible payment options, lowest prices, personal services, better customer service, better returns and return policies or a combination of these?
14. Invest in yourself
Top entrepreneurs buy and read books, business magazines and marketing, reports, journals, newsletters, websites and industry publications, realizing that these sources will enhance their business understanding and marketing functions and skills. They join business associations, and network with other skilled business people to learn the secrets of their success and help them determine their goals and objectives. Top business people attend business and marketing seminars, workshops and training, even though they have mastered the problem. They do it because they know that education is an ongoing process. There are always ways to do better, less time, with less effort. In short, top entrepreneurs have never stopped investing the most effective, effective and best marketing tool for themselves.
15. Accessible
We live in a time when we expect a ready lunch on the drive-thru to be ready in a few minutes, the laundry is ready to be taken on the same day, the money at the ATM and pizza is delivered in 30 minutes or free. You see a developing pattern - You have to make it as easy as possible for the people who do business with you, regardless of the home business you run.
You have to be aware of the fact that only a few people are willing to work hard, get out of their way, or feel uncomfortable giving you the money they earn hard. Facilitating other people to do business with you means that you must be accessible and knowledgeable about your product or service. You must be able to provide what the customer wants, when they want it.
16. Build a strong reputation
Undoubtedly, good reputation is one of the most tangible assets and can be sold by home entrepreneurs. You can't just buy a good reputation; this is something that you produce by fulfilling your promise. If you promise to ship goods to customers on Wednesday, there is no reason for you not to send them. If you offer to fix something, you have to do it well. Consistency for what you offer is another key factor. If you cannot provide the same level of services (and products) to clients on a regular basis, they have no reason to trust you ... and without trust, you will not have a good reputation.
17. Selling benefits
Imposing product features for entrepreneurs who are inexperienced or prospective entrepreneurs. Selling benefits related to owning and using the product or service you deliver is a focus for sales professionals everywhere to create the desire to buy and sell, sell more, and sell more often to their customers. Advertising, sales presentations, and marketing materials that are printed, product packaging, websites, newsletters, trade shows are important things. Every time and media used to communicate with the target audience must sell the benefits associated with owning a product or using your services.
18. Engagement
Always out of your way to be involved in the community that supports your business. You can do this in many ways, such as engaging in local charities or food banks, involved in organizing community events, and local politics. You can join the kumpulam and groups that concentrate on programs and policies that are designed to improve local communities. This is a fact where people like to do business with people they know, like and respect, and with people who do many things to help them as members of the community.
19. Attract attention
Small entrepreneurs cannot waste time, money and energy for promotional activities aimed at building awareness through long-term, repeated opening. If you do, the chance is that you will go bankrupt long before this goal is reached. Instead, every promotional activity that you do, must be able to make money for your pocket so you can continue to attract more attention and make your business grow.
20. Mastering the art of negotiation
The ability to negotiate effectively is a skill that must be mastered by every entrepreneur. Maybe this is the second most important thing that a home business must have. In business, negotiation skills are used every day. Always remember that mastering the art of negotiation means that your skills are applied to win-win conditions. A win-win arrangement means that everyone involved feels they have become winners, which is the basis for building long-term relationships and a more profitable business.
21. Designing a workplace for success
Plan and design your workplace at home carefully to maximize personal performance and productivity, and if needed, to show professionalism for clients who come. If possible, resist the urge to change the corner of your living room or bed into an office. Ideally, you want a separate room with a closed door that separates business activities and family members, at least during business hours. Terrace, basement or garage is usually used as an office in the house. If this is not possible, you must find a way to change the room by partitioning or doing your work when there are no people at home.
22. Maintain order
The key to staying organized is not what type of file you have or whether you stack paper on the table, but about managing your business. Have a system for doing many things. Therefore, you want to create a routine where you can complete as many jobs as possible, or for three hours for part-time business or seven to nine hours for a full-timer. In fact, you must develop systems and routines for every business activity. Little things like making a to-do list at the end of a day's work, or in a week, will help you put the most important tasks first. Creating a single calendar to start work, not a task to duplicate tasks or jobs, will also ensure tasks are completed according to the schedule and promises that are fulfilled. Entering family and personal activities into your calendar is also important so you can work and plan from a single calendar.
23. Free time
The temptation to work all the time is real for some home-based entrepreneurs. However, you do not have a manager who reminds you when to go home because they cannot afford to pay overtime. Everyone who works from home must take the time to set a work schedule that includes time to stretch your legs and rest for lunch, and a few workdays and schedule a vacation. Make a schedule after you make a commitment to start a home business. Of course, your schedule must be flexible. Take time for yourself for one or two hours. Working all the time and not resting will make you tired and poor customer service is not desired by the customer.
24. Limit the number of businesses
It is difficult for most entrepreneurs not to take the approach offered. They want to do and handle assignments as much as possible in their business. The ability to multitask, in fact, is a common trait shared by successful entrepreneurs. However, once in a while you have to stop and review that day to determine what is the best interest in your business and yourself for a long time. Most successful entrepreneurs will tell you when they start, they know where their strengths and tasks are delegated to others.
25. Constant follow-up
Constant contact, follow-up with customers, business prospects and alliances are a mantra for any new or established home-based entrepreneur. Constant and consistent follow-up allows you to turn prospects into customers, increase sales value and buying frequency from existing customers, and build stronger business relationships with suppliers and core business teams. Follow-up is important for your customer list, such as real work that starts after the sale. It's easy to sell products or services, but it takes hard work to retain customers and get them back again.
By: James Stephenson is a home business consultant with more than 15 years of experience in business and marketing. The author of several popular books, including the Ultimate Startup Directory Entrepreneur magazine and the Ultimate Small Business Marketing Guide, both available from Entrepreneur Press.
In a company, making an example of the company's criteria is one of the considerations. However, how important is KPI for your company?
What is a KPI?
Key Performance Indicators (KPI) are indicators that are used to measure the performance of a company to meet the company's strategic and operational objectives. Making a sample KPI of a company can help your business venture ascertain how far the progress has been achieved and what will be achieved.
This benchmark can be used to see the performance of the company's important assets, namely company employees. This is because the performance of the company can be very dependent on the performance of employees as well. So, it is very necessary to manage regularly the performance of each employee as a benchmark for the development and defense of the company's performance. Such performance is like increasing customer satisfaction and also increasing company revenue. This recognition can be done objectively by setting indicators that have to do with the field or job description.
Elements & Examples of Company KPI
Examples of company KPIs are made after the company has a clear strategy and objectives. KPI can help companies ascertain how far the progress of their goals will be achieved. The following indicators of strategic success must meet the following elements:
- The success of KPI can be a means for companies to communicate their strategy.
- Can have a direct connection with the strategy chosen by the company.
- This KPI indicator is quantitative in meaning it has a certain formula in its calculations.
- KPI indicators can be calculated
- The frequency of updates is very useful
- Setting targets for repairs can also be done
- The possibility of comparison with other companies can be done
- Measurements are still very valid
- Data and resources available
- The cost of measurement is no more than the benefit.
Measuring Performance at KPI
There are two types of performance measurement, namely lag performance indicators and lead performance indicators. These two indicators are interconnected because they provide information about how the results or objectives can be achieved. In addition, this indicator can also ensure that the size made is in accordance with the organization's strategic goals.
The same thing with the lead indicator without a lag indicator, then only the lead indicator can focus on short-term performance, but you cannot see the results or objectives of the company in large or if longer time has been achieved. At the lead indicator, it should at least allow you to take preliminary actions to be able to increase opportunities to achieve strategic goals.
This lead indicator can be known before the risk occurs which explains a condition of a process. While the lag indicator is the size of the past performance and is known after the risk occurs.
The following are examples of KPI companies from various fields:
1. KPI in HR / HR
2. Marketing KPI
3. Information Technology KPI
4. KPI in Finance
5. Production KPI
One of the BSC method differences (when compared to other methods) in determining KPI is an example of a company's KPI in BSC determined from the vision and mission to the objective strategy. Recently, this strategy objective can be identified by the KPI needed. So, the BSC is more of a top-bottom approach.
This is very similar to the Japanese company trading strategy that prioritizes market share needs and then determines costs and PTF per product than foreign companies that mass produce goods.
KPI preparation for profit organizations is easier when compared to non-profit. In profit organizations, the achievement of profits and dividend distribution can be more easily measured by the financial scorecard sorted at the front. The vision and mission as well as the relationship between the organization and stakeholders and shareholders can also be more clear.
Conversely, the vision and mission and the relationship between non-profit organizations and their shareholders and stakeholders are sometimes not clear. The vision and mission that is carried out also likes to change. Measurement per program is easier than uniting it in an organization. Socially and the beneficiaries of the scorecard are at the forefront, then it must be able to determine the measurement of qualitative information. If the social and beneficiaries are successful and remain qualified and also the cost per person who does the activity or the cost per non-program decreases and is also effective. Then it becomes a valuable valuation for investors or funders. They will also be competing to make social investments for the organization.
In the end, the determination of KPI must be done by looking at the needs of the organization to achieve the best results. Examples of good corporate KPIs do not have to be applied to many measurements, but the main ones are those that support organizational goals.
KPI Function for Business
The following is the function of KPI for a business:
- Job Energizer
It should be, KPI is always distributed to all employees clearly and also transparently. This is due to the survey conducted by Geckoboard about mushroom management, there are more than 80% of employees in a company wanting transparency about information and data that the boss has, through this transaction, the employee will increase his motivation to reach all company goals. So, do not let things happen that the company and employees don't want, such as resign reasons and employee rights that are not met.
- Measuring Performance
Not only able to measure employee performance or performance, KPI is also able to measure the extent to which a business has developed. Is the business developing towards the good or just the opposite? From this data, you can get solutions for decision making, such as adding employees to cut production costs.
Employee job evaluation methods are very diverse, one of which is the effectiveness of the time spent for 8 hours of work, from the start, resting to home without homework being taken home. However, this evaluation will only make you judge subjectively without knowing what exactly they have contributed to the company.
- To hone a skill
After you know and make an example of a company KPI, then in the process of running a business when there are problems that must be faced, the ability of the responsibility holder will increasingly become sharper to decide about the best way to be able to respond to the company's business goals.
Types & Examples of Company KPI
- Financial
Financial is the main thing in the business so that it develops. Everything held by finance such as cash flow, net income, debt, expenses, income and operational costs must be included. Without the documentation, you will find it hard to give a decision on all the routines that were carried out for the past 6 months.
- Operations
This KPI is able to measure how all employees can provide the best service for their customers. Examples of KPI measurements for each different type of business:
1. Online service business: About how to provide 24-hour service
2. Product sales business: about the timely delivery of goods to consumers or customers.
- Growth
A complete KPI is a KPI that can be used to measure business progress, one of which is the type of growth KPI, starting from the number of visitors, leads, customers to company partners.
What happens if the company's financial period is difficult, so that employees remain motivated and eager to work. If this is allowed, it is feared that anxiety and anxiety will occur, even if employees are afraid of layoffs, the employees will not focus on their work. But whatever the employee is the most important asset in a business. How to motivate employees even though the company is in a difficult situation, here's how:
Setting Goals
Employees who have a sense of responsibility in business have better motivation than workers who do not have a vision for the future. So this is where you have to create a conducive work environment and allow workers to see the goals of the company's vision and mission. Make employees realize that the success of all businesses depends on their work. And make your financial statements as transparent as possible so that they have a better understanding of what is your company's problem.
Regular Evaluation
Take care of your employees how well they do their jobs. Give their positive feedback regularly. Offer constructive criticism in such a way that they are not offended, but learn from their mistakes. By offering them regular evaluations, in order to be able to develop a sense of belonging and motivate them to work diligently in your work even in difficult times.
Training and development
Don't stop training your employees. Look for ways to train employees to be more skilled and don't let employees like monotonous robots.
Gift
Maintain employee motivation at a high level by offering gifts. Prizes do not have to be expensive, events like exemplary employee contests that never late motivate employees to beat their coworkers. If workers work well, you might appreciate them by giving a one-day vacation bonus. Or to a minimum if you can't give a lot of cash prizes, at least every time you meet them always gives them sincere praise.
The use of free accounting software is now increasingly popular with users who are business people. Free accounting software really helps you in carrying out accounting records. However, some people still cannot leave the manual accounting system. Manua or using software actually has the same purpose, but in the process and the benefits are different.
Differences in Accounting Manuals & Free Accounting Software
Manual Accounting
Maybe manual accounting is often used by you in the past. Understandably, now there are so many choices of free accounting software that are computerized accounting. This is the characteristic of manual accounting:
• Manual accounting makes all your work done starting from the process of recording to summarizing purely by the hands and minds of humans.
• It is the human element that plays an important role in carrying out the accounting process
• Accuracy and timeliness are needed to carry out the financial calculation process.
• Accuracy and timeliness in recording financial data and also the presentation of financial statements is very critical.
• There needs to be a separation between parties preparing diaries, ledgers and accounting journals.
Computer Based Accounting
• In the process also involves the human hand in key-in transaction activities or recording business documents that are carried out to input data into the computer.
• It takes precision and timeliness of recording until the presentation of information and financial reports is sufficiently guaranteed by the computer.
• Computer processes used in processing accounting activities. Reliability of hardware, Issue G.I.G.O (Garbage In Garbage Out) and appears in computerized systems.
However, in practice computerized accounting does not necessarily use free accounting software. Microsoft Excel can also be used for computer-based accounting calculations, but in the process, you may still be bothered with the use of an excel formula that is quite complicated. For this reason, in modern times, the use of free accounting software should be an option in making financial reports.
Benefits of Free Accounting Software
Here are the benefits that you can get from using free accounting software:
• You no longer need to use formulas for accounting calculations
• No more complicated writing and making complicated formulas
• Simply enter data or every transaction
• All processes carried out in the free accounting software will run automatically
• All work feels faster and easier
• The financial report will automatically start automatically
If you want to get financial reports that are fast and automatic, then this is the solution for you. Now it's time you switch to free accounting software. One accounting software that can be used by anyone with any business field is Zahir Accounting. Zahir Accounting 6 can be an option for your business calculation needs.
Benefits of Using Accounting Software
Here are some benefits that you can get if you use accounting software:
• Can determine fast business decisions
• Knowing the financial condition of the business at any time
• Able to manage debt and receivables very easily
• Facilitate complete inventory management
• Easy and fast implementation for various types of your business
• Work more fun
• Good investment at a very affordable price
By using free accounting software, there are many benefits that you can get, including:
• Safer Inventory Management
Inventory is one of the assets owned by the company, can be in the form of goods that have been owned or are still in the process and will be sold. From the inventory, you can get information about how much raw material and goods are in the process until the financial statements appear.
This convenience allows you to minimize errors that can occur if done manually. If there is a human error, the system quickly warns you that there is an error entering the data in the free accounting software program. So, you can quickly solve and get a solution for the mistakes you have made.
• Help with the Hospitalization Stock Process
Stock inventory aims to calculate and match the ratio between the amount of physical stock and inventory stock in recording whether it is suitable or not between products in the warehouse. Not only that, another goal of this process is to be able to find out the truth of the financial report that informs the certainty of the financial statements. Ensure compatibility, see cheating and this can be obtained from the inventory process.
• Purchase
This is closely related to the purchases made by your company. In free accounting software, there is a purchase order menu that can be used as authentic evidence in documents and company purchase transactions. In addition, there is also a purchase return menu that is used for items that are not in accordance with the order or damaged in shipping so it must be replaced with new items that match what was ordered. In general, free accounting software has a purchase order feature and purchase returns that can make it easier for you to know about purchase reports.
• Sales Transactions
Sales and purchase transactions are not much different. The function of the sales transaction is to be able to see VAT tax in detail up to discounts, etc. In the purchase transaction, there is a preferential return on the sales transaction menu. There is also another other feature, which is sales returns that can return sales items from customers. Usually, this menu or features are included in the free accounting software.
• Balance Sheet Report
This report is a part of accounting financial statements that will be produced every certain period to inform the financial position of your company. There are 3 crucial parts of the financial report balance sheet, including assets (assets), liabilities (liabilities) and equity (capital). So the main function of the balance sheet of this financial statement is to provide detailed or in-depth information about the company's debit and credit value .
Therefore, the benefits of using this free accounting software can greatly help your company's accounting work. You don't need to bother making a formula until you write it full and a lot until you line it up. With the advancement of this technology, the business of calculating to financial statements can be very easy and fun. In fact, with free accounting software, you don't need an accounting school or have this background because its features have been designed to be very easy to use for anyone.
Master Online Marketing to Increase Turnover
Online marketing is a marketing technique that is most often done in this digital era. In the past, online marketing was limited to attracting as many visitors as possible to the website page. As technology develops, online marketing is not only centered on websites, but also email marketing and social media marketing.
The rise of online buying and selling also makes business people overwhelmed to learn and upgrade their knowledge. They attend courses and seminars to master online marketing. Why? Because by mastering online marketing, business people can increase their turnover significantly. For those of you who read this article, you are very lucky to get free knowledge. Look carefully, huh! Following are the steps to master online marketing to increase your business turnover:
1. Update on social media consistently. Routinely share photos of your product or service, motivational words, while there are discounts and events that you will carry out. Don't forget to upload photos that have been edited first so that your followers are interested and respond. You can upload photos at least twice a day to improve your business through social media such as Facebook and Instagram.
2. Learn Email Marketing. Use e-mail marketing strategies and use automatic e-mail applications. Every type of business requires an automated email service to maximize its email marketing strategy. Like restaurants that always send automated e-mails when they have the latest menus, you also have to start planning like that. The trick is to build an email list / database that you have through an automated e-mail application and arrange what content you will send. Don't forget to insert a link that directs your email reader to get to your website content.
3. Create a website with a private domain address. Many people search first through the internet about the items that they need. As an online business, make sure the services or products you have are easily found by potential customers like this. You can use website creation services or online stores to make it easier for people to find the services or products you offer. They can see testimonials of your products and services directly through the appearance of your website. Make sure that the website creation services or online stores that you choose have a complete and easy-to-use Search Engine Optimization feature.
4. Use paid advertisements. By using paid advertisements like Google Adwords, Facebook Ads or Instagram Ads, you can target who your product or service will be advertised so that it not only increases the marketing of your online business, but also can affect your sales. From paid ads, you can have a database for your next target market.
Implementing online marketing steps to increase business turnover above is one way to still be able to get turnover even though online buying and selling competition is very fierce.
