Administration is the bottom line of any business
Posted 07-13-2009 at 05:43 AM by learninglife
Updated 08-26-2009 at 09:59 AM by learninglife (Title does not say much about the article)
Updated 08-26-2009 at 09:59 AM by learninglife (Title does not say much about the article)
Administration is generally considered to be the “bottom line” of any program. It helps to determine how the marketing program will be run, what written rules and objectives are put in place to make it work, and how well it can be run by you or by those whom you designate. In running a small business, however, making the marketing administration work can play havoc with personal finances.
Therefore, we are going to make some strong recommendations for the ongoing operation of your business—just to be sure that the marketing you plan is able to be implemented.
Your first objective in developing a marketing plan for your business should be to determine exactly how much you need, financially, for the next six months. This means that you must develop a plan for your business. Business doesn’t run itself, nor does it generate revenue all by itself—you must run it. But first, you need to understand your own personal finances.
Create a simple spreadsheet which itemizes the financial needs you and your family will incur for the next six months. List all your current payables, those items on which you pay every month—don’t forget home mortgages, utility costs, insurance charges, religious or charitable contributions, savings plans, car loan or lease payments, entertainment costs, even items down to bottled water and meals consumed away from home. Then include another 10% differential increase to cover items you have forgotten. This should approximate the total amount of funding necessary to cover your expenses—as well as that of your family, if appropriate—for the next six months. Look at this number. When completing this exercise, most clients are stunned at their total cash outlay over a six month period. It is significantly more than they expect.
Now, we want you to think about the business you are developing, and we want you to develop a budget for the next six months, to gain some further insight into charges you will incur with your business. Don’t forget to include office charges, charges for any employees you hire on a constant employment—or casual labor—basis, liability insurance charges, sales tax estimates, any applicable Franchise and Excise Tax liability. If you are paying yourself as an employee, assume that you will be paying charges at a minimum 20% of your income, automobile costs, travel expenses, gas, and any related workers compensation costs. Assume that your workers compensation costs will be between 3% and 6%, and in some cases, as much as 10% of your total payroll. After you have developed this six month budget, add the two totals together.
This will give you an approximation of how much money must be generated to pay your expenses of both the personal and professional side of your business, and will give you a strong indicator of the amount of funding you will have available for marketing administration. Marketing Administration is not only the management of the marketing to achieve business success, but it also represents the process of paying for marketing which is needed to drive the sales and revenue line of your business.
To read more visit www.businesslearning4life.com
Therefore, we are going to make some strong recommendations for the ongoing operation of your business—just to be sure that the marketing you plan is able to be implemented.
Your first objective in developing a marketing plan for your business should be to determine exactly how much you need, financially, for the next six months. This means that you must develop a plan for your business. Business doesn’t run itself, nor does it generate revenue all by itself—you must run it. But first, you need to understand your own personal finances.
Create a simple spreadsheet which itemizes the financial needs you and your family will incur for the next six months. List all your current payables, those items on which you pay every month—don’t forget home mortgages, utility costs, insurance charges, religious or charitable contributions, savings plans, car loan or lease payments, entertainment costs, even items down to bottled water and meals consumed away from home. Then include another 10% differential increase to cover items you have forgotten. This should approximate the total amount of funding necessary to cover your expenses—as well as that of your family, if appropriate—for the next six months. Look at this number. When completing this exercise, most clients are stunned at their total cash outlay over a six month period. It is significantly more than they expect.
Now, we want you to think about the business you are developing, and we want you to develop a budget for the next six months, to gain some further insight into charges you will incur with your business. Don’t forget to include office charges, charges for any employees you hire on a constant employment—or casual labor—basis, liability insurance charges, sales tax estimates, any applicable Franchise and Excise Tax liability. If you are paying yourself as an employee, assume that you will be paying charges at a minimum 20% of your income, automobile costs, travel expenses, gas, and any related workers compensation costs. Assume that your workers compensation costs will be between 3% and 6%, and in some cases, as much as 10% of your total payroll. After you have developed this six month budget, add the two totals together.
This will give you an approximation of how much money must be generated to pay your expenses of both the personal and professional side of your business, and will give you a strong indicator of the amount of funding you will have available for marketing administration. Marketing Administration is not only the management of the marketing to achieve business success, but it also represents the process of paying for marketing which is needed to drive the sales and revenue line of your business.
To read more visit www.businesslearning4life.com
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