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Leadership Training Has a High Return on Investment (ROI)

Job-related training is a given for most businesses. When I worked for a manufacturing company, it was part of the hiring process to train a new employee about the company in general and equipment that would be used most often. The benefits of training in this regard are many, with government regulatory compliance usually near the top of the list. Another reason companies train is because of organization-specific systems, processes or software. There is no way to do the job required without teaching someone about that particular system.

What about the other areas for training – such as leadership, knowledge sharing or team building? Called human capital management, these areas are often crossed off the budget rather quickly during tight economic times. It might seem that HCM topics are merely perks and easily expendable for short-term budget planning. However, this decision may cost the company more money in the long run. Probably the best way to keep training front and center for companies is to prove that HCM training impacts the bottom line.

How can you relate productivity to leadership or team building? The same way companies measure any other variable in a process. While doing streamlining, a process is analyzed for every single input and output, along with variables and measurement of margins. The way to drive out waste is to reduce the variability in the process. Seems pretty simple.

But how do you measure something perceived to be intangible, such as leadership? Truthfully, leadership of a team or process is tangible – we can see the impact immediately. The challenge is in teaching company decision-makers to equate the work of their teams to the business’ financials.

Ram Charan – author of “What The CEO Wants You to Know: How Your Company Really Works” which focuses on the fundamentals of making money – says there are three questions every leader must be able to answer: 1.What is the money making model of my organization? 2. How does my team contribute to the money making model? 3. Do all of the people on my team know the answers to questions one and two?

Think about the impact of these questions. Are you able to answer them? Along with the questions, Charan covers five building blocks of the money making model: cash, margin, velocity, growth and customers. By educating leaders on the basics of the company’s financial structure, everyone in the company can work toward specific goals.

In a paper written by Jim Mahone and Chuck Bokor titled “Valuing Leadership Training: Economic Impacts and Return on Investment” the impact of leadership training is quantitatively analyzed through two different courses and in two different industries. Their results yielded a nearly 15 percent return on investment when comparing the cost of the initial training to the overall impact to the organization, as well as a projected 179-to-1 rate of return for the benefit-cost ratio. Think about how much a 179-to-1 rate of return would impact your own company.

“The reason these ratios are so high can be explained by the fact that leadership training develops the capacity in individuals to deal with all kinds of situations,” the paper claimed. “The benefits of making the right decision for individuals in senior positions of leadership can be tremendous, while the costs of making the wrong decision can also have substantial impacts.”

Leadership training is not just about making team members feel valued or engaging employees in the company goals. Leaders must have the business knowledge and acumen to affect a company’s bottom line as well as continually learn better decision making skills so they can have the confidence to handle any situation or choice that arises.

Business Loan Difficulties – Solutions for Bars and Restaurants

Many traditional lenders have unofficially removed bar and restaurant properties from their short list of business loan candidates. Other lenders will restrict their restaurant lending to a handful of restaurant businesses with a long track record. There are two dominant reasons for these actions by traditional lenders:

(1) Bars and restaurants will usually have the highest failure rate among new businesses. Traditional banks have discovered that an infallible strategy for avoiding such business loan failures is to avoid making these kinds of loans in the first place.

(2) Commercial mortgages for bars and restaurants will involve special financing requirements for liquor licenses and items generally categorized as FF&E (furniture, fixtures and equipment). As a result, there will be a perceived intermingling of various assets looked upon as collateral by the traditional banks, and this extra level of complexity discourages many traditional lenders from actively making commercial real estate loans to bar and restaurant owners.

Business Loan Solutions

(1) One of the primary underlying reasons for a high failure rate among bars and restaurants is directly due to the commercial borrower being forced into short-term financing when long-term financing is essential to the health of the business investment. Businesses (and especially restaurant and bar properties) should not be financed with short-term funds. It is essential to obtain long-term commercial financing of at least 15-20 years (and longer is even better).

(2) Seller seconds and other variations of subordinate financing should be considered. This will permit the most aggressive commercial financing for bar and restaurant commercial mortgages, often up to 90 percent of the property value. This is important if you are the buyer because it will provide another financial tool to help with financing. It is important to the seller because it might enable someone to buy the property who could not otherwise do so. However, subordinate financing (including seller seconds) is not permitted by many traditional banks.

(3) Finally, restaurants and bars will frequently benefit from using credit card receivables to convert future cash flow into immediate working capital via a business cash advance up to $300,000. This funding solution will primarily be of assistance in providing working capital rather than initial business financing.

Other Solutions

Small business owners often encounter difficulties when reviewing their options for buying a business. Bars and restaurants have some unique problems, but commercial financing options are similar for many types of business properties.

Seeking business partners is a prudent alternative to review in many circumstances, but it has considerable merit when a bar and restaurant acquisition is under consideration. Business partnerships, of course, can also involve potential disadvantages. If a business loan cannot be obtained any other way, then this strategy might become a primary financial option.

Stories from Work at Home on Internet Business

In The Metamorphosis story, Mr. Franz Kafka says:

One morning, as Mr. Gregor Samsa was waking up from anxious dreams, he discovered that in bed he had been changed into a monstrous verminous bug. He lay on his Armour hard back and saw, as he lifted his head up a little, his brown, arched abdomen divided up into rigid bow-like sections. From this height the blanket, just about ready to slide off completely, could hardly stay in place. His numerous legs, pitifully thin in comparison to the rest of his circumference, flickered helplessly before his eyes.

It is in this way that the author initiates the history of Mr. Samsa, a traveling salesman who left to have proper life to support all financially expenditures house.

Today, when I woke up and I was to start the 30 day lessons PIPS of my home based business, I thought about this story of Kafka. My feeling was that I am in the way of a chaos: to learn the Making money on the Internet being not from English country; to learn the web technology; to write Articles and to publish in Article Directories; to create my Blogger; to participate of Forum; there are so many activities that in they make me to feel in the way of a metamorphosis. And the metamorphosis is not just a feeling: it is evident.

But my reaction is to try to imprison this chaos, take control of it that can be understood as a general disorientation from the all interconnection with a set of new knowledge in real time. This is a normal reaction. But we move, while a human being, to try to dominate the surrounded situation, controlling the factors that affect us.

These 29 first lessons are like to be displayed to a radiation. A positive radiation. To be ahead at the 30 lesson would be to arrive at the end? Am I ready to make money online? The 30 day could be the last mutation?

The personage of Kafka, when he sees himself as an insect, passes for related practical thoughts with his metamorphosis. In our case, the metamorphosis already started before the day 1, when we adhere to this work from home opportunity.

There are two basic Metamorphosis here: first, to learn to be patient with ourselves in the act of the being learning. We want learn as fast as possible. But it can be unproductive. Be patience and makes the work in accordance with its rhythm. It is a balanced skill to focus the attention.

The second one is to learn to have courage at this revolutionary opportunity of making money. Courage is not a natural ability. We conquer it culturally. We have fear yes, the fear feeling can harm our growth in this type of business and any another one.

Patience and courage. Two cultural abilities for who wants to take risk in home businesses online. This conception of metamorphosis in the businesses will not take us to be insects in biological terms. But with certainty it is an important step for our personal and financial growth.

In the end of the 30 day the insect that bothered me was if undoing front to the acquired knowledge and the lesson of life that I had in elapsing of these days. Now I feel as an eagle ready to flight. I perceived that the insect sensation was purely anxiety to be in the way of a challenge. Now it is the beginning of new phase. I am safe to help people, who are in search of a new business and feel motivated to invest in the business of the future that is the Internet. My objective is to find imprisoned people insect life as unreliability, financial disillusion, stolen dreams. To find the eagle that exists inside of each one. I am certain that all of us were called to win and to conquer our dreams.

Now, nor the sky is the limit. There are many things to learn and to earn.