What does Success and a Big Hunk-of-Iron, have in common?
Success is a state of reaching a desirable goal, and the big hunk-of-iron is something you need to build that goal. But what does that mean for you?
If you want to be successful in business and life, then success starts with this big hunk-of-iron. Successful businesses have a solid foundation of financial stability which comes from cash flow generated by business operations (the metal).
Every successful business needs management’s attention to proper bookkeeping, finances and finance controls; it also needs planning, coordination with other departments and management teams; finally, it needs marketing strategies in place to market the product or service line.
Think about the big hunk-of-iron manufacturing businesses you deal with every day. It requires planning and coordination in the raw materials department, to the finished product packaging. The key is to manage their business operations by using proper bookkeeping, finance controls and having a solid financial foundation; this ultimately generates cash flow for their business operations.
What they may not be telling you, is that they don’t make or grow the product or service line; what they do is use their management expertise to keep their business operations in balance with good bookkeeping practices, proper finance controls and strategic marketing strategies.
All of these activities require management’s attention to proper reporting and accounting, and using flexible management teams.
Management’s job is to make sure their business operations are in balance and the financial foundation is always rock solid. Management’s job is not to focus on a single department which can spell disaster for the entire business.
They don’t need to supervise an individual task; they use their expertise and management resources to manage all departments.
So if you don’t have a solid foundation of cash flow, and proper bookkeeping, finance controls and management resources to manage your business operations, I’m afraid your business is doomed for failure.
Now you may be thinking the only thing you need is to focus on one department; that is not enough. You also need to plan and coordinate with other departments. You need to use your leadership and management expertise to make sure your business is in balance with other departments, and that you have communication lines open with all departments.
You also need to properly track and control the financial resources you have for your services and products. You need to use outstanding finance controls along with proper reporting of financial data, bookkeeping practices and a solid financial foundation.
How do you tell if your financial foundation is rock solid? If you’re not hitting the break even point every month . . . then it’s time for action.
If you want to start growing a successful business, then it’s time to put an end to the lack of financial stability in your business operations. If you’re not making and growing the product or service line, then you need to show the management team if they are using the right business management practices.
While we have been talking about all of this, what has been happening in your business operations?
What is going on in your company with all of these departments? Is it in balance, or do you need to use more leadership and management expertise to get it in balance. If your financial foundation is not rock solid, then you know your other departments are being neglected.
To fix this problem, you need to use the expertise and resources of leadership and management to get your business in balance. You don’t want any department to be neglected; because all departments are needed for generating cash flow.
Management has a job of making sure their business operations are in balance and their financial foundation is solid. Once that is done, they can work on other issues such as expansion, growth and future planning.
If you get your business operations in an accountant or bookkeeper, they will tell you how vital it is to make sure the financial foundation is solid in your business operations. You need leadership and management expertise to keep your business in balance; that’s what makes a successful company!
Think about this quote from Thomas J. Watson, Jr. (former CEO of IBM):
"The future belongs to the people who prepare for it today."
So now you know the reason why a big hunk-of-iron is needed for successful companies all over the world; it’s not only an iron material, but also the management expertise and resources needed to make sure a business is operating properly and in balance. You’re not the only one needing to pay attention to this type of management; most successful companies around the world are paying attention to this.
So what do you have in common with these companies? [ARTICLE END]
Do you think a "big hunk-of-iron" will help your company? How do they use it? Please leave comments below.
In other articles, I have discussed many subjects like: "Why Accounting Professionals Are Not As Advertised", and "Finance Costs In Your Business".
This is one of my blogs about how you need to start thinking about financial stability for your business operations. It's all about you and your management team . . . take advantage of this insight.
If you want to read more about this subject, then I would recommend you to read these articles:
1. "Managing A Small Business - Tips For Success"
2. "Do You Need Professional Bookkeeping?"
3. "Financial Stability - Don't Neglect This In Your Business"
4. "Finance Costs Can Add Up To Serious Money For Any Business" [ARTICLE BEGIN] This is one of my blogs on why we need financial stability in our business operations. It's all about you and your management team . . . take advantage of this insight. If you have been thinking about financial stability for your business operations, then you need to read this article.
Recently, I had the pleasure of interviewing a seasoned business owner who was running his own business out of his home. He told me that he was making sales from his local area, and he also had clients from across the country. He was doing well with his sales operation because he knew how to market and promote himself online. He also said that he was using Facebook for advertising and marketing.
Conclusion
For many small business owners, there are very few people offering a full service bookkeeping package. Many of the packages offered do not include the cost of paper and other administrative expenses. Instead, they offer a couple of bookshelf-sized books as part of their service.
I have also seen many online services that promise to deliver bookkeeping services for a flat fee each month with absolutely no training or support from their staff.