Granting credit and collecting payments
A credit bureau is a company which collects and mantains credit history and sells information
Every person who has a credit, has a credit history
-choosing and hiring employees
-training them
-assigning them authorities and responsabilities
-create organization charts
-raw materials, machinary, equipment...
-processes, activities and everyday operations
MANAGING A BUSINESS
Management- Skillful use and coordination of all the business resources in a systematic and effective way to achieve particular goals
MANAGING EXPENSES, CREDIT & CASH FLOW
IMPROVING CASH FLOW
reduce cash paid out in salaries and wages. If practical, eliminate positions that are not needed and reduce the hours worked by part- time employees
make sure inventory is not lost, damaged
Not tie up cash in excess inventory
shorten the payment timie for customers using credit
Be insistent on collecting overdue payments
Not allow customers to buy on credit if they have overdue bills. Insist they pay in cash
offer discounts to people who pay by cash
collect payments as soon as possible
take advantage of trade credit offered by other businesses
FORECASTING CASH FLOW
3 Substract expected cash outflows from expected cash inflows
List and total expected outgoing cash payments for the next month
1 List and total any expected incoming cash payments over the next month
THE ROLE OF CREDIT
Credit terms
Creditor
MANAGING EXPENSES
Action
Knoledge
HOW TO MANAGE A BUSINESS
CONTROLLING
Ongoing process of setting performance standards, measuring actual performance, comparing it to standards
DIRECTING
Motivating employees for achieving goals.
Interpersonal skill
Team building
Delegating
Democratic
Authoritarian
ORGANIZING
Process of arranging and coordinating resources and tasks to achieve goals.
It puts people and resources in the right place for maximize production and minimice costs.
PLANNING
OPERATIONAL PLAN
Everyday activities that will achieve the goals of the tecnical plan.
Usually done by low-level managers (supervisors)
TECTICAL PLAN
Specific major steps for carrying out the strategic plan.
It includes target dates for acomplishing goals.
Usually done by mid-level managers
STRATEGIC PLAN
lays out a broad course of action for achieving an specific goal
Usually done by top-level managers
