Archive for July, 2005

Employers that provide their team with training are making a commitment to better customer service and to being more competitive in the marketplace as well as encouraging a reduced team turnover rate.

Few businesses are incapable of providing some sort of in-house training to improve skill levels and the improvements in performance that result makes it a highly cost effective investment.

A typical small business’ basic skills training program can incorporate on-the-job instruction of individuals or groups by supervisors and cover practical subjects such as workplace safety and equipment operation. It can also encompass more fundamental topics like reading and writing that at first may not seem work related but actually underlie everyone’s ability to perform their job.

It won’t take a lot of time to develop these programs, nor will it require much in the way of resources. The essence of basic skills training is the sharing of information, letting those with more knowledge communicate what they know to those who will benefit from the exchange.

This type of training is also valuable as part of an induction program for new workers to ensure they have the specific knowledge their work requires. It will give them greater confidence and enable them to be more productive from day one.

Delta Wire, a small manufacturing company in Mississippi, instituted a basic skills training program that enabled workers to record and interpret information on a control chart, and to communicate about that information properly. A year after the program was introduced Delta Wire’s non-conforming material had decreased from 6 or 7 percent to just 2 percent and the firm’s output had increased from 70,000 to 90,000 pounds per week.

Here’s how to introduce a basic skills improvement program in your own organization.

1. Start by analyzing each position in the business and list the specific knowledge and skills that it requires. This will tell you the kind of training you need to provide.

2. Appoint one senior person from your team as the Training Supervisor. Let them be project manager of the training and work with them on structuring the process that will deliver the skills training needed.

3. Identify the members of your team who would make the best instructor for each of the skills on your list. Involve as many other team members as possible in the planning and let them help in developing the content of each ‘course’.

4. You might be able to involve your suppliers or even some of your customers in the process, especially if skills related to equipment or product usage are part of the requirements. Most people are willing to share their knowledge with others if asked to do so.

5. As with all the training you do, be sure you have a way of getting feedback on how effective the training has been. Ask both the instructors and the students to evaluate the training sessions and use their comments to improve the process.

You can get assistance in planning your basic skills training from a variety of sources including local technical and vocational educational institutions, trade associations, unions and government agencies. Investigate these before you begin and you may find that someone else has already done most of the hard work for you.

Information in this article is sourced from RAN ONE, Inc

Managing cash is one of the most important tasks for any business owner and even if it’s not as glamorous as sales and marketing it is the job that makes sure the bills keep getting paid on time.

The cash position of a business at any time is easy to determine if you know just three figures - the cash in the bank, the cash that’s going to be received by the business, and the cash that has to be paid out.

It sounds simple, and it is, yet it’s amazing how many business owners don’t have a grasp of these three cash measurements. Whether you have a financial officer, or handle the accounts for your business personally, there are things you should be doing to keep on top of your cash position.

Know what’s in the bank at all times Banks can prepare statements at any frequency you request, and online banking is even easier and tells you instantly how much is in your account. Because this is the only source of funds you can instantly draw upon, you should be aware of your bank balance at all times.

Watch your receivables It’s not enough to know how much is owed your business - you also need to know when it’s coming in and if any payments are running overdue. This means ensuring that your debtors know when their payments are due, and having a credit policy that is firmly administered.

Know what you owe The other side of the coin is keeping track of what you owe and when payments have to be made. You might be paying bills too early and could hang onto cash an extra week or two without upsetting suppliers. You also need to be sure you’re taking advantage of any discounts on offer.

Monitor your cash position Just knowing the bulk figures of your bank account, receivables and payables isn’t enough to give you the full picture of your cash position though. You also need to incorporate the dates when receivables will arrive and when payments have to be made. This will help eliminate the possibility of being in a position where you have bills to pay while still nervously waiting for the cash to come in.

There are three other things to do that will help you get more benefit from your cash.

Put spare cash to work If you’re lucky enough to have surplus funds or are building up a strategic cash reserve put this money into a short-term interest bearing account. There’s nothing more wasteful than money just sitting in a non-interest bearing account.

Restrict your banking Don’t have too many accounts, and don’t deal with more than one bank. This makes it easier to know how much cash is on hand and puts you in a more favorable position with a financial institution.

Get expert financial advice Many small businesses have someone who ‘does the books’ and an accountant who sees the accounts once a year for the purpose of preparing a tax return. Unfortunately, this exposes the business to cash flow problems that can arise during the year. At least on a quarterly basis, have your business’ cash flow position analyzed by an accountant who can use their experience to spot developing problems in cash flow before they become too serious.

Cash management is an important responsibility of business ownership. It isn’t all that complicated but it does require regular attention and monitoring using cash flow forecasts.

Information in this article is sourced from RAN ONE, Inc