UNDERSTANDING THE BUSINESS WORLD
Congratulations, you have now joined the world of business. You have made your decision and have accepted employment. So where do you go from here? What do you know about the business world?
The majority of young people never really give this any consideration. You are not alone. Most young people enter the business world and drift along – they go with the flow. Ultimately they learn about the business they are involved in but the learning experience will be restricted to the information they pick up as they go about their daily duties. Occasionally they will attend training courses where additional information about the nature of the business is shared with them.
Some companies do not see the need to share with employee’s information about the workings of the business. Unfortunately information is shared on a “need to know” basis. This is shortsighted of employers, as the employees can be so much more effective if they know what the company is all about and how it functions on a day to day basis.
My personal belief is employers should share with their employees the aims and objectives of the company. They should discuss how they intend making profits each year and what role each division or individual within the business can play to help achieve these objectives. Employees should be made aware of how profits can be made and what influences the company’s ability to make these profits.
In order for you to be a conscientious employee, you should spend some time in trying to understand such issues and then applying this knowledge in your new career. While you are at the starting point of your career, learn all you can about the company and how it operates. Keep your eyes and ears open and learn as much as possible. Politely ask questions and seek clarification on areas you feel a need. Show an interest in what is happening in other areas of the company and do not just restrict your knowledge to your own area of work.
This information will assist you in the future and will ensure you do not remain at the bottom of the ladder of success. Take your time and do not become impatient. Learn slowly but thoroughly. Progress and development takes time and you should exercise patience in this regard.
How does a business survive?
The most important thing to remember is that a business survives on people and profit. The people are the employees who work every day to ensure the smooth running of the business and that profits are made. Without profit a business cannot succeed, cannot pay wages and cannot keep people employed.
What expenses does a business have?
The expenses a business might have will depend on the nature of the business. Some of the more common expenses are:
Salaries, wages and/or commission payments
Water lights and rates
Equipment purchases or rentals
Vehicle purchases or rentals
Repairs and maintenance costs
Telephone, fax and computer costs
Staff development and training costs
Allowance for breakage’s, loss and theft
Furniture and fittings
These are standard costs in most companies and these may vary slightly depending on the nature of the business. In order to be able to meet these expenses a business must be making money.
Poor workmanship, poor service, bad attitudes lack of interest can all lead to a loss of confidence by the customer and ultimately the loss of the customer. This will result in loss of income to the business and could lead to loss of jobs. If you value your job, you should take pride in the work you do and always do it to the best of your ability. Maintain a high standard in everything you do.
How does a business make profit?
Many people believe that when a business sells a product or delivers a service the money made is all profit. This is not the case.
Profit is what remains after all the expenses and overheads of the business have been paid.
It is important to remember that in order for a business to grow it is necessary to put some of the profit aside into a growth fund. The money put aside can be used at a later stage to expand the business, to create more jobs or to improve or purchase new equipment. That is why it is important for a business to remain profitable.
You can play an important role in assisting your company remains profitable, by being a productive employee. The quality of the work, reduction in breakages, no stock loss or theft, doing a fair days work, reducing absenteeism, realistic salary increase demands, no strikes, no misuse of telephones and respect for the property and equipment of the business are just some of the ways.
Strive therefore to do your best to keep your job, by helping to keep the business in which you are working profitable. Each one of us has this responsibility.