Tag Archives: entrepreneur

How To Know If Your Business Is Suffering: Employee Turnover

For entrepreneurs, the ultimate sign of financial anguish is generally running out of cash. However, running out of cash is not a cause of business failure and rather a symptom of business breakdown. Let me explain:

Why a Business Truly Fails

  • Gross or Net Margins Slip: Gross profit margin (GPM) is calculated by deducting cost of employee turnover-1goods sold from total revenue and then dividing that number by total revenue. GPM is used to denote ability of a company to effectively manage its most critical costs. On the other hand, Net profit margin (NPM) refers to the percentage of revenue that is left after all operating expenses, taxes, interest, business bookkeeping, and preferred stock dividends (with the exception of common stock dividends) have been deducted from the total revenue of a company. Usually, the NPM of a company is far more significant than the amount of earned profit.
  • Profitability Challenges and Struggles: In today’s cutthroat business environment, it is important for every business (even the brick-and-mortar ones) to make profits that are sufficient enough to survive. There is no doubt when we say a company that is not profitable is a business at huge risk. An unprofitable company will then resort to raise capital from outside that opens up a completely different world of control and risk.

It All Starts Internally: Watch for Your Employee Turnover

Employee turnover is classified as the percentage of the workforce of a company that quits voluntarily during one year.

High employee turnover rates do not always indicate that there is a problem with management or that the company is not a great place to work. Remember: employees of companies with great visibility and brand value are more “poached.

Good managers and entrepreneurs can control employee turnover rate by managing compensation, working conditions, supervision, training, communications, monotony, and organization practices. Essentially, you’ve got to make your own workforce happy!

What Jurassic World Can Teach You About Being a New Age CEO

We’re all dying to see more dinosaurs on the silver screen, aren’t we? First Jurassic Park, then The Lost World, and Jurassic Park III — and now we have Jurassic World, a seeming disaster of commercial, technological and evolutional proportions just dying to be seen at a movie theater near you, and wouldn’t you know it?

This Is a Great Way to Explain What a “New Age CEO” Is!

Here’s the thing about dinosaurs: they’re savage, bestial, old, “old news,” ‘old hat,’ from a time long, long ago (not in a galaxy far, far away where Skywalker’s learning about personal development), and they’re well behind of the evolutionary chain due to advances in everything from technology to civilization, for obvious reasons.

Although a T-Rex could probably cause some problems in Chicago. Or Miami. Or New York. Or wherever. But that’s not the point.new age CEO t-rex

The Point Is Evolution Takes Precedence

When it comes to the business field, entrepreneurs in our digital age have the advantage over the “dinosaurs” of the corporate primordial ooze, where such “new age CEOs” don’t sit at an office on the 34th floor away from the potential customers, the revenue generators, and have a direct line to that clientele base better than anyone. There are no layers. There’s just one line of communication, and in this rise-of-the-Internet age, that’s crucial.

Corporate culture demands that we stay in line with the change in times. Nowadays we have CEOs who know how to the job of the lower workers (sometimes maybe even better). They’re transparent. Visceral. Efficient. They’re in tune with their workforce, exemplifying a wicked Santa Claus complex of content marketing clear across the world.

How does technology do this? Think of instant messaging, video conferencing, seamless group training, social media, blogging. All of it. We have metrics now. We have an ability to measure the industry, measure competition, and respond appropriately. The “new age CEO” has an advantage here.

The New Age CEO Is Adaptable

This makes sense when we’re thinking about an evolutionary train of thought. After all, a meteor killed those dinosaurs, and for good reason. They weren’t fast enough to “get out of the way.” Their brains were also kind of small. The more ‘advanced’ mammals, though, had an advantage (and a lot fur to protect them from the vicious Ice Age).

It’s the same with the new age CEO. They adapt well to change in the industry. They research the trends. They don’t just sit at their desks reviewing prospects and figures. They research new articles, new discussions, new questions asked to address coming issues in the industry, and they stay on top of all of that, remaining current with their best practices and implementing all of that immediately.

new age CEO airbnbThat keeps the new age CEO one step ahead of the competition.

Oddly enough, because of this monumental global scale of cyberspace hitting home for the corporate stratosphere, it’s actually easy for any new age CEO and a startup to go worldwide almost immediately. Just look at companies like Uber, Airbnb and Lending Club. Back in the day when the Stegosaurus used to have to trudge along for 50 years just to get to a lake, these companies drove their hovercrafts in the future and got clear across the world in 50 minutes.

That’s evolution. It’s now definitely feasible to go global even when there’s no domestic market, yet.

We’re Far From Extinction

You can rest assured that there won’t be any meteor — or some other global killer — coming around anytime soon. We’re ready. The new age CEO is more than ready. The new age CEO is actually prepared.