In the workplace, leaders who “lead by example” and inspire others to do the same are critical to an organization’s success. Leaders are arguably the most critical asset in any organization and are counted on as pillars to hold up and support the rest of the workforce. As such, their role is the most inspected and their success is most directly correlated to organizational success. As a leader, you are expected to be a problem solver. But you don't need to have all the answers. In fact, leaders are not only allowed to but are obligated to use any and all resources at their disposal to come up with the best solutions. Great Leadership When thinking about great leaders we often think of the characteristics they have that most people lack. That’s not how the legendary business leader W. Edwards Deming saw things. He believed that leadership isn’t about the individual at all. In fact, he saw leaders more as facilitators and the people being led as the tru...
Financial Concepts The economic management of an entrepreneurship has to do with key concepts such as: income, costs, expenses and investment. Knowing these concepts is important for the entrepreneur to calculate the break-even point and to make financial projections. Income Is the money that the entrepreneurship receives from the sale of goods and services developed to be sold in the market. To calculate the level of income (daily, monthly, annually or any other period) it’s necessary to know about the price and quantity of sales of the product. (Example: If a bakery sells 200 pieces of bread daily for 0.20 cents their daily income is $40) Costs It has to do with the money the entrepreneur gives to the suppliers in exchange for goods or services. These costs, as a main characteristic, are related with the production area of the business. (Example: In a bakery, flour and eggs are an example of costs because those are used to make the bread) Expenses They are related to the c...
Handling of the main accounting accounts The majority of productive entrepreneurships, when accounting for their financial transactions, tend to accumulate records in accounts such as: cash, banks, accounts receivable, inventory, fixed assets, depreciation, accounts payable, capital, income, costs and expenses. These accounts belong to the main accounts such as: assets, liabilities, equity, income, costs and expenses. Plan of financial account of a business When the entrepreneur decides to permanently record the financial movements of the business, it is important to structure, in first place, a list followed by its definition of the financial accounts involved. This practice is very useful since the person in charge of keeping the business accounting, finds within the plan of financial account the qualifying group frame. Here are located the accounts that have a direct connection with the financial movement that will be registered. Here we have an example of the pl...
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