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May 30, 2018 / Uncategorized

Business Trends – Office Accounts and Cut Costs (and Cut Value)

The rapid absorption and saturation of technology showed a number of small business growth in the 21st century. One of the most important reasons for this is the globalization of the business due to the influence of the Internet. Businesses are now able to reach potential customers and customers all over the world, small businesses become more and more manageable as they have a larger market share and key technologies to simplify (and automate) operational activities.

SOHO (Small Office / home office) used to describe technology savvy and innovative small business owners, but it now seems to be the norm, not the forefront of business. In the humble home office there was a desk, a modem, and a fax machine. However, cellular and PDA technology is greatly improved as it is widespread in modern society, we begin to see the next phase or trend appearing at the beginning of business.

The "Office in a Box" generation affects the business world as we are talking about. Nowadays, your mobile phone or PDA can handle all business needs, use of the Internet, conference calls, word processing, spreadsheets, and even entertain these long national or international flights. Software companies are now focusing on the research and development of mobile / portable technologies for mobile phones and PDAs and developing more and more traditional desktop software developed exclusively for these types of markets

Modern business owners choose either in the neighborhood cafe , in your favorite park, even in the sun on their favorite beach. Are you still working in an office or taking your office wherever you go?

Cutting Cost (and Cutting Value)

There is a very strange trend across businesses around the world to "rationalize resources" and reduce "business operating costs". It is true that the emergence of the most important manufacturing resources in China and Korea significantly reduced labor costs to a number of large companies in the world. It is also true that the choice of outsourcing of overseas business has reduced the reduction in labor costs. However, there are two kinds of concerns about these practices, none of which seems beneficial to your business or employees.

First of all, the gains from these (sometimes unscrupulous) practices are rarely passed on to employees. The clear representation of this point comes from companies claiming that the number of staff or wages should be reduced and then recording the record gain in the next quarterly or semi-annual report. It does not take an MBA graduate to understand that although staff wages / salaries include a significant portion of the operating costs, this is also the employees that generate the bulk of the income of the business. Reducing the number of staff will work in the short term to boost profitability and even like the shareholder, but in the long term reduces employee confidence in safety and reduces business performance and productivity.

Second, Outsourcing Business activity (especially major business activities) contributes to the loss of business identity both in image and operational terms. In most cases, owners will not be able to modify their business, from service providers to service brokers, so both their quality and accountability can be reduced. This has a clear impact on the company's image and reputation.

The point is that you have to cut costs, but do not reduce the value of your business. There is little profit in the short term, but accounting in the long run will result in more severe losses.

Source by sbobet

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