Author: kccadmin

UNDERSTANDING FINANCIAL RISKS

August 1, 2018 Published by

Financial risk is the possibility that shareholders or other financial stakeholders will lose money when they invest in a company that has debt if the company’s cash flow proves inadequate to meet its financial obligations. When a company uses debt financing, its creditors are repaid before shareholders if the company becomes insolvent.

Financial risk also refers to the possibility of a corporation or government defaulting on its bonds, which would cause those bondholders to lose money.

Financial risk is the type of specific risk that encompasses the many types of risks related to a company’s capital structure, financing and the finance industry. These include risks involving financial transactions, such as company loans and exposure to loan default. The term is typically used to reflect an investor’s uncertainty of collecting returns and the accompanying potential for monetary loss.

Investors can use a number of financial risk ratios to assess an investment’s prospects. For example, the debt-to-capital ratio measures the proportion of debt used given the total capital structure of the company. A high proportion of debt indicates a risky investment. Another ratio, the capital expenditure ratio, divides cash flow from operations by capital expenditures to see how much money a company will have left to keep the business running after it services its debt.

Types of Financial Risks

There are many types of financial risks. The most common ones include credit risk, liquidity risk, asset-backed risk, foreign investment risk, equity risk and currency risk.

Credit risk, also referred to as default risk, is the type of risk associated with people who borrow money and become unable to pay for the money they borrowed. As a result, they go into default. Investors affected by credit risk suffer from decreased income from loan payments, as well as lost principal and interest, or they deal with a rise in costs for collection.

Several types of financial risk are tied to market volatility. Liquidity risk involves securities and assets that cannot be purchased or sold quickly enough to cut losses in a volatile market. Equity risk covers the risk involved in the volatile price changes of shares of stock. Asset-backed risk is the risk that asset-backed securities may become volatile if the underlying securities also change in value. The risks under asset-backed risk include prepayment risk and interest rate risk, both of which may also accompany other types of risk.

Investors holding foreign currencies are exposed to currency risk because different factors, such as interest rate changes and monetary policy changes, can alter the value of the asset that investors are holding. Meanwhile, changes in prices because of market differences, political changes, natural calamities, diplomatic changes or economic conflicts may cause volatile foreign investment conditions that may expose businesses and individuals to foreign investment risk.

 

Source: https://www.investopedia.com/terms/f/financialrisk.asp

 

HOW TO MANAGE BUSINESS RISKS

July 31, 2018 (updated July 31, 2018) Published by

Business risk originates from many different areas—internal to the business and from external sources. The best ways for a business to manage risk is to evaluate risk factors and make contingency plans on how to deal with the risk when and if it presents itself. Planning for these risks is the main them of managing a business risk, but you cannot plan for everything, so managing risk also has a lot to do with how you react when risks arise.

  1. Write a business plan. The process of writing and putting together a business plan is a vital step to assessing, evaluating and planning for the risks of running a business from the various standpoints of the business. This includes operations, finance and marketing.
  2. Determine insurance needs and obtain coverage. Most businesses carry liability insurance or insure the building and contents where the business operates. Depending on the business activities, you need to determine the other types of insurance and obtain the correct coverage for your business. For example, a tile installation business should carry liability insurance in case a worker is injured while installing tile. A real estate business or legal business may obtain an errors and omissions insurance policy in case a client sues for a professional wrongdoing.
  3. Write a risk management plan. Separate from your business plan, write a risk management plan, which lists all of the possible risks that can affect the business. The plan also lists the steps, procedures and ways in which the business intends on dealing with the risk as it arises. For example, if your business is located in an area of the country prone to hurricanes, then you may have a hurricane preparation plan on how you can minimize the risks associated with this type of weather to your business.
  4. Train employees. Avoiding risks and how to deal with the risk if it occurs can help the business avoid further damage or exposing itself to risk in the first place. For example, if your business deals with a heavy machine, such as forklifts, you may want to have each employee earn an OSHA certification for operating the machinery as proper operation of the forklifts can avoid injury and damage risks.
  5. Update plans. Even the best of planning efforts may fall short, so when the business is exposed to a risk, react accordingly and then put a formal plan and procedure in place in case the same risk occurrence happens again.

Source: https://smallbusiness.chron.com/manage-business-risk-4566.html

Convincing Customers To Buy From You

July 30, 2018 Published by

Customers never buy because of product features. They buy because they perceive some “benefit” to those features.

Unfortunately, most sales and marketing messages talk about features and let the customers try to figure out the benefits. That’s asking your customer to do your heavy lifting for you.

You’ll get more customers, more quickly, if you communicate the benefits of using your product rather than the features it possesses.

  1. Know the difference between a benefit and a feature.

A feature is something that a product or service “is” or “does.” A benefit is something that the product or service “means” to the customer. For example:

Wrong: “This car has a reinforced safety roof.” (feature)

Right: “This car keeps your family safe.” (benefit)

  1. Use vivid but plain language.

Customers will remember a benefit longer and more easily if it’s expressed using simple, strong words that evoke emotion.

Wrong: “This roof provides protection in the event of a rollover accident.”

Right: “If this car rolls, there’s a good chance you’ll walk away unharmed.”

  1. Avoid biz-blab and jargon.

Nothing leaches a benefit of emotion more than the use of tired business cliches or overly technical terminology.

Wrong: “Robust implementation of 80210 protocols!!!”

Right: “You can connect virtually anywhere.”

  1. Keep the list of benefits short.

Most people can only hold two or three thoughts at one time in their short-term memory. Long lists of benefits just cause confusion.

Wrong: “Here are the top 10 benefits of using our product:”

Right: “The two most important things to remember are…”

  1. Emphasize what’s unique to you or your firm.

Benefits that are generic to your product category can convince a customer to buy… but not necessarily from you! Use benefits that differentiate you from the competition:

Wrong: “Our software makes you more productive.”

Right: “Our customers report an average 30% decrease in costs, about twice the industry average.”

  1. Make your benefits concrete.

Customers ignore benefits that are abstract and expressed using vague adverbs and adjectives. Benefits that are concrete and specific are more convincing and “stick in the mind.”

Wrong: “We can radically reduce your inventory costs.”

Right: “We decrease inventory costs by an average of 25%.”

 

Source: https://www.inc.com/geoffrey-james/6-ways-to-convince-customers-to-buy.html

HOW TO IDENTIFY A BUSINESS OPPORTUNITY

July 27, 2018 Published by

To be successful entrepreneurs we need to be continually innovating and looking for opportunities to grow our business.

But how do you find new opportunities to take your business to new markets and growth levels? Here are four ways to identify more business opportunities.

1. Listen to your potential clients and past leads

When you’re targeting potential customers listen to their needs, wants, challenges and frustrations with your industry. Have they used similar products and services before? What did they like/dislike? Why did they come to you? What are their objections with your products or services?

This will help you to find opportunities to develop more tailored products and services, hone your target market and identify and overcome common objections.

2. Listen to your customers

When you’re talking to your customers listen to what they saying about your industry, products and services. What are their frequently asked questions? Experiences? Frustrations? Feedback and complaints?

This valuable customer information will help you identify key business opportunities to expand and develop your current products and services.

3. Look at your competitors

Do a little competitive analysis (don’t let it lead to competitive paralysis though!) to see what they doing and more importantly not doing? Where are they falling down? What are they doing right? What makes customers go to them over you?

Analysing your competitors will help you identify key business opportunities to expand your market reach and develop your products and services.

4. Look at industry trends and insights

Subscribe to industry publications, join relevant associations, set Google alerts for key industry terms and news and follow other industry experts on social media. Absorb yourself in your industry and continually educate yourself on the latest techniques and trends.

 

Source: www.smartcompany.com

HOW TO TURN YOUR PASSION TO YOUR PROFESSION

July 26, 2018 Published by

The words readily come to mind, “Love the life you live, live the life you love”. While this may sound like great advice, it’s easier said than done. Everyone is passionate about something – writing, photography, traveling, coin collecting, skiing. The list is endless. One of life’s great questions is how to turn your passion into your profession.

If this was an easy process, everyone would do it. It’s going to take commitment, sacrifice, and determination. Turning your passion into your profession may take years to accomplish. It may require university degrees, entrepreneurial efforts, skill development, or countless other things. Following your dreams will push your comfort zone, but you really can find a job that pays you to do what you love if truly want it.

Below you’ll find general steps that you can follow to turn your passion into your profession:

  • Start – It’s easy to daydream, but if you want this to be your reality you need to do something. Figure out what you are truly passionate about. Use your free time to teach yourself the skills you’ll need to pursue this new endeavor. There’s a good chance that this process will start as a side gig.
  • Explore Your Options – The biggest puzzle piece is determining how to make money doing what you love. You have to find where your passion overlaps with what people demand. For example, if you love food, you might be a chef. If you love watching movies, you could become a movie critic. If you love surfing, you work as a surfing instructor. Depending on what you love to do, you may have to get a bit creative. Do your research and see what you can come up with.
  • Invest Time – This process isn’t going to happen overnight. Use your free time to learn the ins and outs of your future career. Plan to start as a side hobby and slowly turn it into a money making job. Take the time to become qualified and to become an expert.
  • Network – Tell your network about your new job. Meet influencers. Connect with professionals. Build your personal brand and your social presence. Let people know who you are and what you’re doing.
  • Learn From Your Mistakes – Every successful person has failed at first. Learn from your mistakes and you will thrive.

To successfully pursue a job doing what you love, you need to be driven and motivated. You’ll have to work hard and earn the job that you love. It’s imperative that you realize this now. There’s no easy road to success when you’re pursuing your passion.

When you turn your passion into your profession, you’ll be able to make a living doing what you enjoy doing. You’ll finally be able to escape the boring old office and focus your energy toward something that makes you smile. And work won’t really feel like “work” anymore. It’ll be fun.

What are you waiting for? Right now is the time to turn your passion into your profession. If you don’t take the leap of faith now, you may never do it.

Disclaimer Notice: This post is sourced from www.jobmonkey.com

Does Communication Really Matter?

July 25, 2018 Published by

Communication plays a fundamental role in all facets of business. It is therefore very important that both internal communication within your organization as well as the communication skills of your employees are effective. Effective Communication is important for the development of an organization. It is something which helps the managers to perform the basic functions of management- Planning, Organizing, Motivating and Controlling. Communication skills whether written or oral form the basis of any business activity. Thus, it can be said that effective communication is the building block of an organization.

Effective communication is a basic prerequisite for the attainment of organizational goals. No organization, no group can exist without communication. Co-ordination of work is impossible and the organization will collapse for lack of communication. Co-operation also becomes impossible because people cannot communicate their needs and feelings to others. If open communication within a workplace is encouraged, a more cohesive and effective team will emerge. Good communication within a team also tends to boost employee morale. When employees feel that they are well informed of the company’s direction and vision, they will feel more secure within their role. Regular internal communication can also lead to an improved work ethic if staff are reminded of achievements and feel that they are working towards a common goal.

It is through effective communication that an executive ultimately gets work done by others. When managers are effective communicators, they are more able to inform staff adequately of their responsibilities and what is expected from them. Good communication skills also helps managers to provide constructive feedback to their staff, build better relationships, and understand personal goals that staff may wish to work towards. Therefore, a successful executive must know the art of communication. Moreover, communication is a means whereby the employee can be properly motivated to execute company plans enthusiastically. It is the means by which behavior is modified, change is effected and goals are achieved. The first executive function is to develop and maintain a system of effective communication-the tool for understanding. It is commonly said that what nerves are to human organism, communications are to an industrial system.

A lack of communication can lead to the collapse of any organization. Whilst that is a bold statement – without proper marketing collateral and communication internally and externally, most organizations will struggle to survive. Communication can also lead to productivity and helps to avoid unnecessary delays in the implementation of policies. Communication is not confined solely to employees. Management must communicate with its customers, owners, the community as well as its prospective and present employees. But our discussion is restricted to interpersonal communication and the organizational communication process. When regularly communicating both internally and externally, organizations remain more transparent. This is important in building trust in your brand, in your services and also internally when it comes to the trust that employees have in higher management.

It is particularly important for a customer service organization to develop good communication channels and processes with all of its stakeholders and especially with its customers and employees. The Inland Revenue operates in a fast-changing world and its culture is changing to become more customer-focused. It has assumed responsibility for new areas of work, and has developed sophisticated modern internal and external systems to enhance multi-channel communications. It is vital that responsive, informed employees identify and meet their customers’ requirements as quickly as possible. To meet this challenge, the Inland Revenue has embraced a range of communication methods that take full advantage of modern technology.

NB: This article is sourced from LinkedIn.

COPING WITH STRESS AT WORK

July 24, 2018 Published by

Everyone who has ever held a job has, at some point, felt the pressure of work-related stress. Any job can have stressful elements, even if you love what you do. In the short-term, you may experience pressure to meet a deadline or to fulfill a challenging obligation. But when work stress becomes chronic, it can be overwhelming — and harmful to both physical and emotional health.

Unfortunately such long-term stress is all too common. In 2012, 65 percent of Americans cited work as a top source of stress, according to the American Psychological Association’s (APA) annual Stress in America Survey. Only 37 percent of Americans surveyed said they were doing an excellent or very good job managing stress.

A 2013 survey by APA’s Center for Organizational Excellence also found that job-related stress is a serious issue. More than one-third of working Americans reported experiencing chronic work stress and just 36 percent said their organizations provide sufficient resources to help them manage that stress.

You can’t always avoid the tensions that occur on the job. Yet you can take steps to manage work-related stress.

Common Sources of Work Stress

Certain factors tend to go hand-in-hand with work-related stress. Some common workplace stressors are:

  • Low salaries.
  • Excessive workloads.
  • Few opportunities for growth or advancement.
  • Work that isn’t engaging or challenging.
  • Lack of social support.
  • Not having enough control over job-related decisions.
  • Conflicting demands or unclear performance expectations.

Effects of Uncontrolled Stress

Unfortunately, work-related stress doesn’t just disappear when you head home for the day. When stress persists, it can take a toll on your health and well-being.

In the short term, a stressful work environment can contribute to problems such as headache, stomachache, sleep disturbances, short temper and difficulty concentrating. Chronic stress can result in anxiety, insomnia, high blood pressure and a weakened immune system. It can also contribute to health conditions such as depression, obesity and heart disease. Compounding the problem, people who experience excessive stress often deal with it in unhealthy ways such as overeating, eating unhealthy foods, smoking cigarettes or abusing drugs and alcohol.

Taking Steps to Manage Stress

  • Track your stressors. Keep a journal for a week or two to identify which situations create the most stress and how you respond to them. Record your thoughts, feelings and information about the environment, including the people and circumstances involved, the physical setting and how you reacted. Did you raise your voice? Get a snack from the vending machine? Go for a walk? Taking notes can help you find patterns among your stressors and your reactions to them.
  • Develop healthy responses. Instead of attempting to fight stress with fast food or alcohol, do your best to make healthy choices when you feel the tension rise. Exercise is a great stress-buster. Yoga can be an excellent choice, but any form of physical activity is beneficial. Also make time for hobbies and favorite activities. Whether it’s reading a novel, going to concerts or playing games with your family, make sure to set aside time for the things that bring you pleasure. Getting enough good-quality sleep is also important for effective stress management. Build healthy sleep habits by limiting your caffeine intake late in the day and minimizing stimulating activities, such as computer and television use, at night.
  • Establish boundaries. In today’s digital world, it’s easy to feel pressure to be available 24 hours a day. Establish some work-life boundaries for yourself. That might mean making a rule not to check email from home in the evening, or not answering the phone during dinner. Although people have different preferences when it comes to how much they blend their work and home life, creating some clear boundaries between these realms can reduce the potential for work-life conflict and the stress that goes with it.
  • Take time to recharge. To avoid the negative effects of chronic stress and burnout, we need time to replenish and return to our pre-stress level of functioning. This recovery process requires “switching off” from work by having periods of time when you are neither engaging in work-related activities, nor thinking about work. That’s why it’s critical that you disconnect from time to time, in a way that fits your needs and preferences. Don’t let your vacation days go to waste. When possible, take time off to relax and unwind, so you come back to work feeling reinvigorated and ready to perform at your best. When you’re not able to take time off, get a quick boost by turning off your smartphone and focusing your attention on non-work activities for a while.
  • Learn how to relax. Techniques such as meditation, deep breathing exercises and mindfulness (a state in which you actively observe present experiences and thoughts without judging them) can help melt away stress. Start by taking a few minutes each day to focus on a simple activity like breathing, walking or enjoying a meal. The skill of being able to focus purposefully on a single activity without distraction will get stronger with practice and you’ll find that you can apply it to many different aspects of your life.
  • Talk to your supervisor. Healthy employees are typically more productive, so your boss has an incentive to create a work environment that promotes employee well-being. Start by having an open conversation with your supervisor. The purpose of this isn’t to lay out a list of complaints, but rather to come up with an effective plan for managing the stressors you’ve identified, so you can perform at your best on the job. While some parts of the plan may be designed to help you improve your skills in areas such as time management, other elements might include identifying employer-sponsored wellness resources you can tap into, clarifying what’s expected of you, getting necessary resources or support from colleagues, enriching your job to include more challenging or meaningful tasks, or making changes to your physical workspace to make it more comfortable and reduce strain.
  • Get some support. Accepting help from trusted friends and family members can improve your ability to manage stress. Your employer may also have stress management resources available through an employee assistance program (EAP), including online information, available counseling and referral to mental health professionals, if needed. If you continue to feel overwhelmed by work stress, you may want to talk to a psychologist, who can help you better manage stress and change unhealthy behavior.

Copyright Information: This article is wholly sourced from the American Psychology Association. Korsell Corporate Consult is pleased to share the truths therein and has reproduced it as part of efforts to maintain a healthy corporate culture.

IF YOU MANAGED US…

July 23, 2018 (updated July 23, 2018) Published by

At a time where we are conscious of our need to provide you with cutting edge services and products that are essentially relevant to the business you operate and our mutual need of one another, KCC understands the urgency that surrounds the need to afford you the opportunity to make any amendments and suggestions that would be absolutely necessary for the eventual sustenance of your business. We believe that it is all the more important to tilt our perspective under your lens and be guided by your expectations. In doing this, we are giving you an opportunity to ensure that we do only what things have gainful meanings and implications for your company and the relationship we share.

If you managed us, you would have access to a dedicated staff that is absolutely committed to ensuring the sustenance of businesses in Ghana and beyond and you would be exposed to a network of resourceful and experienced consultants who bring the best ideas on board and are strictly committed to the pursuit of good organizational practices and procedures. If you managed us, you would be awed by the devotion our staff attaches to undertaking their tasks, that devotion that has renewed investor confidence in our capital brokerage processes.

If you managed us, we would have a direct experience and an unmatched understanding of the expectations you attach your dealings with us. We would have the rare privilege of being led by your innovations and be guided by what proven methodologies have shaped your entrepreneurial drive.

KCC absolutely cherishes you, not only as a client, but significantly, as a worthy partner, in whose hands our success lies. Our understanding of management puts you, our client at the top and overemphasizes the reverence we give you, for we know beyond question that our sustenance, the ideal proof of good management systems is laden in what satisfaction and contentment you derive from your interactions with us. You are our supreme manager whose needs and preferences shape our organizational policies and what products we make available.

Talk to us at KCC today. We need the manager you are, you our revered client. Click here

WRITING BUSINESS MINUTES

July 13, 2018 Published by

You would have to write and report minutes after your business meetings. When our meetings aren’t effective, we waste valuable time figuring out what we are trying to accomplish in them. When our meeting minutes aren’t effective, we waste the time we spent in meetings. Without good meeting notes or minutes, we may not remember or recognize:

  • What we decided in the meeting
  • What we accomplished in the meeting
  • What we agreed to in terms of next steps (action items)

And when we can’t remember the items above, we end up going in different directions and then meeting again for the same original purpose!

(Definition: Notes and minutes are the same thing. Minutes are more formal and are often required by organizational bylaws.)

To avoid wasting your time spent in meetings, be sure your notes and minutes answer these 10 questions:

  1. When was the meeting?
  2. Who attended?
  3. Who did not attend? (Include this information if it matters.)
  4. What topics were discussed?
  5. What was decided?
  6. What actions were agreed upon?
  7. Who is to complete the actions, by when?
  8. Were materials distributed at the meeting? If so, are copies or a link available?
  9. Is there anything special the reader of the minutes should know or do?
  10. Is a follow-up meeting scheduled? If so, when? where? why?

Minutes need headings so that readers can skim for the information they need. Your template may include these:

Topics
Decisions
Actions Agreed Upon
Person responsible
Deadline
Next Meeting
Date and Time
Location
Agenda items

Do’s and Don’ts:

Do write minutes soon after the meeting–preferably within 48 hours. That way, those who attended can be reminded of action items, and those who did not attend will promptly know what happened.

Don’t skip writing minutes just because everyone attended the meeting and knows what happened. Meeting notes serve as a record of the meeting long after people forget what happened.

Don’t describe all the “he said, she said” details unless those details are very important. Record topics discussed, decisions made, and action items.

Don’t include any information that will embarrass anyone (for example, “Then Terry left the room in tears”).

Do use positive language. Rather than describing the discussion as heated or angry, use passionate, lively, or energetic–all of which are just as true as the negative words.

 

Blog source: Business Writing

 

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