Practical tips for optimizing your business management

Managing a business is never an easy task. There is a lot of data involved, a lot of decisions to make, and a lot of human resources to deal with. Optimized management is a guarantee that the business will remain sustainable, so it is very important to know how to manage all the resources of a company. In today’s article, we’ll leave you some practical tips to optimize the management of your business!

Invest in internal communication

Internal communication is often neglected, but it is one of the most important areas in a company because it deals with the main public of an organization: its human resources. It is important that there is fluidity in the transmission of messages, as well as transparency in the work environment. It is essential to implement business management channels and/or applications that facilitate communication between the various departments.

Use an ERP

ERP management systems are used to improve the management of business resources and relate the data and processes in one place. Through the use of tools of this type, it is possible to integrate all sectors of the company so that the decision making is easier and more objective. The use of an ERP also allows the reduction of non-strategic costs and the creation of a greater competitive advantage.

Track KPIs in real time

Key performance indicators are very important for more assertive and thoughtful decision-making. They work like a thermometer that tell us the degree of results obtained in certain areas. Through BAM software such as Multipeers, you can analyze KPI compliance in real time. The life of your business happens now, so it is imperative to follow, every second, what goes on with your company! Only in this way you will be able to be one step ahead of the competition.

Get to know the market and your customers well

It sounds like a very basic tip and that everyone knows, but the truth is that it is here where many companies fail. It is crucial that companies are well aware of the market they are in, so they will not be surprised by unexpected fluctuations. Likewise, it is imperative that companies know well what the public is communicating and that they know the specifics of their target audience. Only in this way can you create a message that meets the needs of the target.

Set realistic goals

If a company doesn’t know where it wants to go, any way is good. The establishment of realistic objectives is the guiding line of the company and is the map that will guide all the work of the collaborators. For an objective to be positive for the company, it must be specific, measurable, achievable, relevant and challenging.

7 Financial Mistakes That Harm Your Business

To err is human and it is very likely that a manager, throughout his career, make some mistakes. However, there are financial mistakes that can be very detrimental to running a business and can even lead a business to failure. In today’s article we address the 7 financial mistakes that hurt your business!

Lack of constant analysis

It is essential these days to continuously analyze your business, because only then can you find problems before they materialize. Managers can no longer survive just with Excel sheets and reports with a few days. It is essential that the business is analyzed at the minute, because only in this way will be able to be always ahead of the competition. Business monitoring software like Multipeers is a growing need in today’s business because it allows you to analyze in a simple way everything that is happening now with your business.

Spend what you (still) don’t have

Hiring a debt with money that has not yet gone into the box is a very common mistake and should be avoided to the fullest. There is no guarantee that the customer will not be late in paying or if an unforeseen event will happen and you will need to invest in something more urgent.

Do not make a balance sheet

As companies grow, various investments are made and the company’s assets are growing over time. However, there is often no concern about knowing what one possesses at a given moment, eventually continuing to invest in disorderly ways. Having knowledge of the balance sheet helps the company whether it needs to continue to invest or whether, on the contrary, it should reduce its investments.

Lack of automation

Performing tasks manually that could be automated is a very common mistake. Using an ERP helps you optimize all processes, reducing costs and increasing productivity by reducing human error. The information of a company must be integrated, so that all the data is updated so that it is easier to make decisions.

Do not have KPIs

The financial area is one of the most relevant in any business and the use of indicators becomes essential. Using business metrics enables you to measure the outcome and verify that the stated goals are being met. Working without indicators is like being lost in a complex labyrinth without a map to guide you.

Mixing personal expenses with company expenses

It is a very common mistake among business owners, who usually use the company account to pay for personal expenses. This mistake is very detrimental to business as it completely changes the fixed costs of the organization and distorts its financial reality.

Focus only on sales

Sales are the ultimate goal of every business, but if you don’t pay attention to the other areas of the business, you may compromise your entire business. Administrative and human resource management are examples of areas that deserve to be treated with care. Good management of all departments of a company will reflect the financial results in the medium and long term.

[Free e-book] BAM: The importance of real-time information for meeting objectives

The business world works at an extremely fast pace, which means that it is imperative to be constantly updated about what is happening in organizations, otherwise you will lose business opportunities and won’t detect problems in a timely manner. The globalization of access to information and the constant development of information technologies have contributed to the existence of products such as Multipeers. Capturing data for the creation of dashboards where the current state of a company is found is increasingly necessary for the control of operations and consequent maximization of results.

Why is it necessary to act in real time?

Markets are becoming more competitive and consumers, as they are more informed than before, are increasingly demanding and are looking for solutions in a practical and fast way. Nowadays, everyone “lives running” so that acting late in the business sector can lead to irreversible losses in profits and competitiveness. A company that makes its decisions based on reports with a few days will always have a reactive and non-proactive presence.

What is a BAM system?

A BAM tool consists of monitoring the company’s business processes through management indicators. Managers track all processes in real time through a simple and intuitive dashboard that can be defined as the global management cockpit of the company or organization. Through the implementation of a BAM system, managers can cross performance information and through this crossing can find production failures, for example, and act immediately, ensuring that these failures will not have harmful consequences.

Multipeers as a BAM system

In most companies, decision-making is based on reports, intranets, and e-mails that require the user to search for information. Due to this reality, many companies lost business opportunities because they didn’t have timely information. Likewise, on many occasions decisions have been made on the basis of outdated information, rendering them ineffective and wrong.

To combat this difficulty, Multipeers comes with the objective of delivering relevant information about the business in real time directly to their devices (desktop, tablet or smartphone). By using Multipeers, you don’t need to spend time looking for information, making processes and decision making much more agile and effective. In a simplified way, Multipeers assumes itself as a global, automated and real-time management cockpit.

Download the ebook “BAM: The Importance of Real-Time Information to Achieve Goals” and find all you need to know about business monitoring and meeting goals!

Everything you need to know about the relationship between BAM and KPI’s

Get to know the relationship between BAM and KPI’s

We have already talked on the blog about BAM tools and their importance for business continuity. In this article, we’ll cover the relationship between business monitoring tools and KPIs!

What is a KPI?

KPI stands for key performance indicator. In the business world, KPIs are quantifiable measures that serve to understand whether the company’s goals are being met or whether the strategy needs to be modified to achieve them. For example, productivity KPI is very important to measure the productive capacity of a collaborator. This indicator shows us the relationship between the work produced by a collaborator and the resources used for this purpose. For example: a worker installs 20 m2 of floor in an hour. His colleague can install only 17 m2 of floor in the same time, being less productive than the first.

Relationship between BAM and KPI’s

Companies that decide to invest in a BAM system must have mechanisms to continuously measure the business, because only with constant analysis does investment make sense.

In order for a BAM system to be well implemented and to present practical results it is necessary to follow some good practices, of which the following stand out:

– Survey of critical business processes

– Define which metrics you need to analyze

– Find the best way to compile the information present in the various systems

– Present the information in an intuitive dashboard and adapted to the needs of each user

– Ensure historical data and make projections based on real-time data analysis vs. historical data

– Constant analysis of results

Analyzing performance consistently ensures that more attention is paid to meeting the objectives. An efficient process must be planned and controlled.

Continuous performance monitoring plays a key role in planning and subsequent control because it provides information on processes developed by the organization. The effectiveness of any control strategy depends to a large extent on the correct suitability of developed performance metrics and KPIs.

 

If you want to know more about the importance of monitoring tools download our free ebook and understand how a BAM system can change the whole management of your business!

 

10 Essential Metrics to Analyze Your Business

Get to know the essential KPIs for your business

A KPI is a Key Performance Indicator, and have vital importance for companies as they measure process performance and by analyzing collected information it’s possible to work to improve future actions. There are numerous performance indicators in a company and its definition always depends on the area of ​​activity. However, there are transverse factors to all activities and in this article we highlight the 10 most important.

Net profit

It’s one of the most important values ​​for any company. We’ve reached this amount after adding up the entire billing volume and deducting costs and expenses.

Net Profit Margin

The profit margin represents what the company plans to make in return for what it invested. In addition to calculating net income to obtain the net profit margin, companies must stipulate an amount that is in accordance with what the market is willing to pay for their product. If the expectation of profits is well above normal there may be problems with future planning.

EBITDA

EBITDA means for Earning Before Interest, Taxes Depreciation and Amortization and it’s a way of calculating how much a company generates of resources only with its operation, that is to say, before subtracting the value of the taxes. The formula for achieving EBITDA is Net Operating Income + Depreciation + Amortization. This is a very important value for companies that are looking for investors and serves as a comparative point with other companies in the same industry.

ROI

ROI means return on investment and it’s the return on made investment. This value is the result acquired with the investment made.

Market Share

Market share means the participation of a company in the market in which it’s located. This value can be found through billing measurement, quantity of customers, among others.

Cost Per Lead

This is a value widely used in the digital world, which is gaining importance in the business world. The cost per lead is composed of the sum of the expenses with marketing actions divided by the leads generated through these actions.

Customer Lifetime Value

This metric seeks to define the profit that a company may have. CLV represents the total value obtained with a given customer within a given period and for how long it can still be a customer.

Liquidity

Liquidity is the ability to turn an asset into cash. The faster the conversion is, the more liquid an asset is. This indicator assesses the ability of the company to pay employees and suppliers.

Index of compliance

Controlling accounts is crucial so that the company can balance its accounts payable. This indicator evaluates what the company has to receive and how much of that amount is late or has not been paid.

Employee satisfaction index

It’s very important to analyze the satisfaction status of a company employees. This indicator should identify the main GAPs of management and to guide actions to improve organizational culture.

Knowing the state of the company at every moment is vital for managing the business effectively and objectively. Multipeers enables real-time analysis of the state of the business and provides key metrics for the successful pursuit of objectives.