How Can The Chinese New Year Affect Your Business

One cannot deny that the Chinese New Year, or the Spring Festival, is the most celebrated festival in the Chinese calendar. It can fall anywhere between January 21 and February 20. This upcoming holiday is not only important in China as it also appears to be influential in other Asian countries including Taiwan, Hong Kong, and Singapore.

As China’s position in the business world is significant, the Chinese New Year will pose an international effect for the companies or people who do business with it. That being said, here some elements that you need to prepare before the CNY celebrations begin.

THE RED ENVELOPES

To accommodate for this festive period, companies dealing with Chinese manufacturers or retailers must adopt to the local practices. This accommodation shall extend to companies dealing with international trade.

For starters, you must prepare red envelopes with money inside. These red envelopes are usually given in the form synonymous to a 13th month salary. It is issued to employees in January as a bonus for CNY.

THE ADVANCE PURCHASES

Manufacturers in China will be closed for a month. Then, they will have a month to get back to their previous rhythm. To welcome the Chinese New Year in a blissful note, you must forecast the needs of your company and buy in advance.

Minimize the disruptions in your business operations by ordering a two-month supply to be delivered from China to Singapore. While it may seem difficult in terms of cash flow and storage space, this preparation will ensure that you will not run out of stock during the festive period. Remember that promotions tied to the holiday seasons can attract people to buy more. By forecasting your needs early, you may perfectly cater to the purchases of the customers. Furthermore, this preparation will enable you to safeguard your inventory.

THE BUSINESS TRIP

The general advice regarding business travel during or around CNY is to reconsider. It is not a suitable time to come to the country for business. Since most businesses will be shut down, it is not a conducive period to get things done.

However, there may be cases wherein a visit to China for business is essential. In this particular situation, you must take some precautions. Start by having your accommodations booked ahead of time.

Image Credits: IQRemix via Flickr Creative Commons

While the CNY may improve your business network in China, it goes without saying that family is the top priority at this time. From a business perspective, being prepared for the upcoming Chinese New Year will go a long way to avoid any problems!

Sources:1 &2

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How To Write A Business Plan For Your Small Business

Starting or running a business isn’t the easiest thing in the world. In order to gain traction with your newly developed small business you need to have a plan in place to know where to start and the direction you need to move in. What many unsuccessful business owners have in common is a lack of a business plan. If you’re looking to begin a small business, but don’t have a business plan in place, then you need these tips below.

What To Include In Your Business Plan

  1. Your Business Concept

Your business concept is where you discuss key areas like your business structure, your industry, particular products or services, and an idea on how to make your business successful long term. Without a basic business concept you run the risk of falling short in the direction you want to take your business.

  1. Your Strategy To Implement Your Concept

Your strategy to implement your concept is important. Why? Because it holds key elements you need to consider that will help you with the direction you want take your business. Your strategy should include things such as the goals you have for your business, how you plan to reach those goals, the actions you need to take in order to achieve this, any unforeseen complications that may occur during this journey, and when you hopefully plan to reach them.

  1. What You Offer and The Markets You’ll Pursue

What you have on offer and the target market you want to pursue also needs to be covered in your business plan. You need to have solid and clear information about your products/services, what makes then different, and why customers would want to purchase them from you and not your competition.  Along with this you need to know which markets you’re looking to target. Who will be your customers? What’s your target demographic audience? How will you attract and retain these customers? What sets your business apart from your competition? What methods will you use to capture your target audience? Answering these questions in detail in your business plan can help lay out the foundation to success so don’t be afraid to dig deep when writing this key area.

  1. Employee Plan and Strategy

If you’re a business that has key employees, it’s a good idea to have a strategy of where those employees will be in your business when you plan on implementing your strategy above. Key things to include is what they’ve done, the skills they can offer, and how long they’ve worked for your company. While this may not be as important as your business concept, it’s still an important factor. Without key personnel in place, your business won’t run as well as it could do.

  1. Finances

To grow your business and take it to the next level you need funding. It’s ideal to work out how much financing will be needed from your projected financial statements. These statements can give you an overall idea on how much you could make once your strategies play out. While it’s in some way guessing, it can give you a detailed footprint and rough estimate on how much you need to be making and spending to be able to make your business plan work for you.

Business plans are an essential part of any business. Without a business plan you run the risk of derailing the future success of your small business. We hope you liked these tips from Capstone Financial Planning. Are you ready to write your business plan?

 

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The True Cost Of Workplace Conflicts

This month is filled with a roller coaster ride of emotions. Concluding my September was a big event that my branch held. This nationwide event stirred varying conflicts of different degrees. The highly stressful environment induced a simple misunderstanding, which became a whole ordeal among the team. You see, some people began taking sides. A week has passed before my boss noticed that something is wrong. He needed to resolve the problem immediately! Fortunately, his intervention worked out.

While business owners know that workplace conflicts affect productivity and employee morale, not many are aware that office drama can drain their funds. In 2008, the publishers of the Myers-Briggs Assessment and the Thomas-Kilmann Conflict Mode Instrument conducted a study on workplace conflict. Results showed that American employees spent nearly 3 hours per week in dealing with workplace conflicts. This is equivalent to approximately S$490 billion in paid hours or equivalent to 385 million working days. These crazy numbers pose an alert to people running the workplace.

Workplace conflict’s effects are not limited to time wasted. 25% of employees reported that they avoided conflicts by skipping work or by calling in sick. Equally alarming, nearly 10% reported that conflicts led to project failure. These negative behaviors translate to financial losses, especially felt by small businesses.

It is no secret that we spend our time comparing, gossiping, retaliating, and playing defense. These countless amounts of time is much rather spent on customer interactions and other productive activities. Navigating yourself around the whole drama is important. You do not want to lose some loyal customers just because two employees are tarnishing your organization’s image!

On that note, I have listed some practical ways to deal with workplace conflicts.

Image Credits: pixabay.com

1. Employers shall create a workplace environment that empowers employees to manage conflicts. Regardless of your employee’s role in the organization, HR officers must conduct behavioral questions that tests how one shall react during conflicts. For instance, an applicant may share about his or her previous experiences in dealing with workplace issues.

2. As a part of cultivating a conducive environment, you may encourage healthy dialogues or debates in small groups. Help your employees appreciate the value of differing perspectives and analyze each one.

3. As much as you want your employees to resolve their conflicts on their own, you must know where to draw the line. Do not expect that everyone can handle every problem on their own! Ensure that your employees can count on you when they have encountered inappropriate or illegal behaviors. You must be immediately notified when there are indications of physical violence, sexual harassment, theft, or substance abuse.

4. Remind your team that they shall focus on the unpleasant workplace behaviors and its consequences when trying to address a particular conflict. They must not take things personally. They are not there to assassinate someone else’s character. They are there to improve their team’s dynamics.

5. Provide ongoing training on conflict resolution and stress management. These types of training can lead to self-assessment and self-understanding of one’s conflict-management skills. Drills can help them identify the pros and cons of using a certain style.

6. As an employer, you must not put the workplace conflicts on top of your priority list. Actively listen to your employees and support them in every way possible. But, you do not have to automatically take ownership of their problems. Be able to discern whether an issue needs immediate action or not.

7. Say that one employee is consistently causing the workplace dramas. Furthermore, you do not see any improvements as time passes. Pull this employee aside and talk to him or her in a mature manner. Monitor his or her progress by talking to the team periodically. This can help prevent any future conflicts from spiraling out of control.

Image Credits: pixabay.com

As a leader, you must navigate around the issues with objective lenses. Know the truth of each sides and run through the possible interventions that you can offer. Every move counts!

Sources: 1, 2, & 3

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Everything You Need To Know About: Value For Money

When you hear the phrase “value for money”, what is the first thought that pops to your mind? Most people would say that it involves cost-effectiveness. Its definition goes beyond that. Value for money is a utility derived from every purchase or every sum of money spent.

It is based on the minimum purchase price and the maximum effectiveness of the purchase. Simply put, value for money should have four different dimensions. These four dimensions are: economic, efficient, effective, and equitable.

The value of money should be economic in terms of its processing. Inputs must have been procureed at the least cost for the relevant level of quality.

The value of money should be efficient in terms of its outputs. The value of outputs should be considered in relation to the total cost of the inputs.

The value of money should be effective in terms of achieving program outcomes. Sometimes, equity considerations are put in here.

Lastly, the value of money should be equitale in terms of ensuring that the benefits are distributed fairly.

EVALUATION OF VALUE FOR MONEY

There are different ways to evaluate the value for money. Here are just three of the common ones:

1. Cost Utility Analysis

When the evaluator needs to consider individual preferences, this is usually the method that they turn to. This approach takes two or more alternatives and compares their costs to their values. However, it can result to a number of potential outcomes.

2. Cost Effectiveness Analysis

This approach can be employed when you need to compare the programs that aim to achieve the same goal. It involves evaluation of two or more alternatives based on the relative costs and outcomes.

3. Cost Benefit Analysis

If you want to know whether the costs outweigh the benefits then, you must use this method. This approach is the evaluation of alternatives by determining the costs and benefits of each one. It highlights whether a course of action is worthwhile or not.

Image Credits: pixabay.com

It is essential for an evaluator to consider a variety of methods for determining whether an activity is value for money or not.

Sources: 1, 2, & 3

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Is Employee Training Worth Spending For?

In the past few months, I have been attending seminars and training conventions nonstop. Two of which were products of my personal efforts. While the succeeding three were given freely by the company I work for. These statements may sound a little too textbook heavy. However, I valued it all.

Well-trained employees do come at a cost and it can contribute to a better workplace in the long run. Yes! You are required to shell out time, money, and resources. However, it is a worthy investment. Here are some of the reasons why:

#1: IT INCREASES PRODUCTIVITY

Employees who are not equipped with tools to efficiently do their jobs are likely to be less productive than those who are well-trained. I remember lodging a resignation letter due to not having sufficient training, which led to burnout. Underperforming employees can be a burden for any business. Think about the costs that come with that!

#2: IT UPGRADES YOUR BUSINESS

Times have changed! Several industries have embraced the modern advances of technology. No business shall be left behind! It is important to comply to the current industry regulations mandated by the government. This can be achieved by attending training. Furthermore, ongoing training ensures that your staff’s knowledge and stratgies are up-to-date.

#3: IT CREATES UNIFORMITY

Undergoing proper training can ensure that the responsibility of supervision will be lessened. I am not saying that you need to eliminate supervision completely. But, you do not have to micromanage everyone in the workplace. Well-trained employees will know how to complete their tasks or goals in a uniform manner.

#4: IT ATTRACTS THE BEST CANDIDATES

When prospective employees go for a job hunt, they assess whether a specific organization is a good fit for them. Employee benefits can draw the best talents from the start. Offering continued training or compensation for further education creates a “good image” to a business. Training is a key feature that many people look for within their job search.

#5: IT BOOSTS EMPLOYEE SATISFACTION

The premise is simple: employees who are happy with their jobs stay at a longer period of time. Proper training contributes to employee satisfaction. You see, employees who are satisfied with their roles are the ones who understand the scope of their jobs. They know what strategies or resources to exhaust to get the job done!

Happy employees are more productive. Moreover, they want to contribute beyond what their job entails.

Sources: 1, 2, and 3

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