Consider the above tips and manage your business finances better! Running a business isn’t as easy as it may seem on T.V. or in movies especially when it comes to taking it to the corporate level. To be able to reach such a standard you need to first start off right from the bottom. So, here are some mistakes you need to be well aware of if you want to reach the corporate standard goal.
Not targeting right
Any athlete running a 200m race knows how to get to the finish point and what they should be doing to get to that point. And that is because before they start to actually run the race they assess things beforehand. Similarly, when operating a business as well, you need to make sure that your start is good to get to where you want. Therefore, identifying your target market right from the beginning is vital. Depending on the market you target, the strategies that you need to use, the product that you need to produce, the product developments you need to make and such, vary. However, if you fail in identifying your target market from the beginning, even the best MYOB bookkeeper Melbourne keeping track of your accounts wouldn’t be of any help!
At the beginning it may seem like you have a lot of money in your hands to spend on anything and everything. However, as times goes and you start having to make purchases and whatnot, you’ll come to realize how much of a big mistake you made by not budgeting out your costs from the beginning. Therefore, even if it is the smallest amount make sure that you hire an expert in small business bookkeeping and budget and keep track of your costs.
Hiring too many employees
Employees in a company are definitely one of the most important assets. However, as important as they are hiring beyond the limit is only going to increase your costs. Therefore, you need to forecast your human resource well. Ask yourself whether there is really a need for new employees and whether you can truly afford the cost of them. Based on such practical analysis make the right choice.
Not making payments on time
If you want to make sure that your business continues operating the way it is, you need to make sure that you make the payments that you owe on time. And one of the most important is the utilities. Payments that you need to make to creditors are also costs that you need to always be mindful of especially if you want to make sure that your business relations can be maintained. Avoid the above mistakes and make sure that you operate your business for as long as possible!
Takaful is basically Islamic Insurance which goes with the Shariah law in Islam. The body of Islamic Law. This particular name also known as the Arabic word “ Kafalah” which means mutual guarantee. However this Insurance is purely based on the principle of mutality, where the policy holder will own the company and share the profits in it. There are three types of Insurance, Mudharaba, wakala and a hybrid of both the takaful.
This particular policyholder pays premiums into a policyholders funds. However the administrative expenses and the reinsurance and paid from this particular fund. Any residue at the end of the financial year will be the underwriting profit. This will be allocated in a part of the policyholders reserved fund.
Islamic Law completely forbids “Interest”, usury and the exploitation of the needy. Even in good Islamic Home financing interest is prohibited. It also prohibits Risk, uncertainty, deceit and hazard. However acquisition of wealth by chance and gambling is also prohibited. However such conventional insurance works on a risk transfer where the insurance company has to accept the risk from a policy holder in exchange of a premium. Basically such companies invests these premiums on huge markets to make more profits, which is basically called as Gambling and it’s completely prohibited in Islam.
In Islamic Insurance this particular fund consists of paid-up shareholders capital and basically reserves together with the income they get. However all these incomes and investment should be according to the shariah Law, it means that these should be on a profit and loss sharing basis than the engaged in huge markets. However such shareholder are responsible for their loses of the policyholder fund. However this liability is limited to the amount of equity in the company.
This particular insurance is one of the oldest concept in Islamic finance and it is purely based in profit sharing. This kind of takaful is practiced all around in the Asia-pacific region. However the companies management is paid from the companies profit and shares in the residue and the losses the company faces.
This version of insurance is basically an arrangement where an agent will be managing the company and he will be getting a fee for his services. This particular fee is already agreed at the beginning of a financial year and can be a fixed amount or an agreed share of the profit the shareholder or the policyholder funds.
Above mention both the takafuls can be put together to produce a hybrid takaful. The managing agent of the company will receive a fixed fee from the policyholder’s fund. But from the companies profit only. The policyholder has the rights to share both the underwriting profits and the invested profits.