How to Boost Trust in Business Relationships?

Business is about relationships. One does not do business with numbers or organizations or firms. People are involved in the business. Hence business comes down to relationship – individual relationship. A relationship involves customers, vendors, suppliers, employee, employer etc.

business relationship

For business relationships to grow and be productive, trust has to be developed first. It is the base of every connection. Trust is a positive emotion. And a firm belief in the reliability, truth and ability or strength of someone.

The movement a person is not trusted by a team, his chances of success within that group is diminished. One has to build and maintain trust in the business relationship. And is important for the owner and his organization’s success.

Trust is can be understood and influenced. Here are few situational factors that one can look into to increase trust level and that will have a positive outcome.

  • Similarities: If the other person believes that you are like him, then he is more likely to trust.
  • Mutual concern: Will they stand by you, and look for both’s interest.
  • Interest alignment: Are you and your business client in the same boat? If yes, he will trust you.
  • Capability: If you are competent to deliver what you have promised.
  • Predictability: Are you predictable and do what you say.
  • Communication: Constant, open and honest communication builds trust.

How to boost trust in vendors?

In a business cycle, there are ups and downs in cash flow. There are times when the company wishes to release vendor’s money. But since it faces cash crunch it is unable to pay its vendor.

To build trust in vendors it is better to call regular meetings and clear your cash flow. Let each vendor know how much and when will he be expecting payments. There are chances that few vendors will not agree. Let them know the mutual interests are in staying together.

How to boost trust in customer?

Building relations with the customer is to fulfill the promise made to him in due course of business. Better start with small contract. Deliver it on time. See that you work well. This develops mutual trust. Once you fulfill your promise you will be getting more contracts from him. Later on, you can take bigger and bigger contracts.

How to boost trust in employee?

Employees are the base of any business. Business culture should be such that it supports the employees. And looks after their interests. Management should set up reasonable expectation from the employee and this should be communicated to them.

This, in turn, makes the employees feel secure in their positions if they meet the given objectives. Management should make the employee feel secured.

By creating various opportunities for teamwork, group outing to reinforce the feeling of shared experience.

Trust in business is one of the components for a better relationship with the vendor, customer, and employee. It can be influenced by the leader. Hence a leader should understand the various component of trust building. And create a constructive environment.

Top Ten Management Lessons to Learn from Lord Krishna

Lord Krishna is a spiritual master for the modern management more than a Hindu God. He is the ideal, motivator and a strategist in every sense. From whom everyone can learn a lot. The universe is witness to his wondrous work. His teachings are endless. His names and genre are unaccountable. He is such kind of leader and motivator, who imparted valuable lessons to all. Lord Krishna has proven his excellent management skills and charismatic leadership. He has given his teachings throughout his exemplary life and works. Let us take a glimpse of management strategies of Lord Krishna on such a few wonderful aspects:

Lord Krishna

  1. Share your knowledge

There is a saying in Hindi that knowledge grows by sharing. Every leader must have a quality of sharing only then he can become a successful leader.

As we known Krishna as a Sarvagnya. He does not hesitate to share his thoughts as being ‘omniscient’. This happened that once Arjuna refused to fight with his relatives (Kauravas), then Krishna told him the purpose of the Mahabharata war, remove his fear and clear his doubts, taught him to get focused on his work and goal. This is the reason that today we read it in the name of Bhagavad Gita.

  1. Stick to your goal

During his life, Krishna had three main goals in the life, to which he fully sticks. His first goal was “paritrayana sadhunam” – which means “welfare of good”. His second goal was “vinashaya dushkritam”- which means destroy evil (thought) and the third and final goal was “dharma sansthapana” – it means to establish and strengthen the good principles. As a manager, he expressed that the organization should have clear cut aims and should not allow anyone to control their senses and stick to their goals.

  1. Planned and strategic approach

Lord Krishna was a strategist who used the problem-solving approach in his life. Mahabharata was won by Pandavas with his strategic skills. It proves that a person who is skilled in planning or strategy will definitely win in the war and politics. A proper planning and taking action is essential to achieve or get long and short-term goals.

  1. Excellent management

Krishna alone could have finished the Kouravas in a few hours, but he did not do so. Rather he stood as a teacher and made Pandavas to fight the war. It is the final quality of the good manager, who reflects his vision.

  1. Never take sides based on relationships

Being a supporter of religion, Krishna never took sides on the basis of relations. Therefore, Krishna provided gave equal opportunity to take them. Since Duryodhana knew this, he had come to Krishna. He again decides to be fair and urges Arjuna to make choice between himself and his whole army. Arjuna chose Krishna, and the whole army was chosen by Duryodhana.

  1. Skilled thinker

Whenever Pandavas were de-motivated, Krishna was there to motivate them. Apart from this, in the interaction between Pandavas and Kouravas, Krishna deliberately broke the conversation.

  1. Down to earth behavior

Being the supreme of this universe, Krishna was living a simple life as a common man among the people. He played with the catapult, gollas (guarding the cows), became a friend of Sudhamma, and the most important, he has become a charioteer of Arjuna, which tells about his behavior down to the earth.

  1. Tactful strategist

As a smart strategist, he never broke any rule but bowed down the words of the rules against the powerful Kovaravas for the benefit of Pandavas.

At the end of the Bhagavad Gita, for the sake of the uplift of religion, and to destroy the unrighteousness, Krishna was never ashamed of taking any action nor did he fear anything. Even if it was destroyed, it would be creative. But Arjun was worried that those who are fighting are his own family, and there will be bloodshed. Not only did Krishna inspire him to fight for war, but emphasizes creative destruction. Despite facing the vast Kauravas, he guided the entire army of Pandavas under one command and they were victorious.

This is the best lesson, which people should know about being a part of corporate life!!

Top four things every CEO need to focus on daily basis

Being a CEO in a corporate world is not an easy task because they are the people who are responsible for steering the company towards profit and are questioned by promoters and stakeholders alike for the company going in loss.

Promoters or board of directors usually employ the best CEO possible. Being the senior most corporate officer of the company it is his duty to make the company grow, thrive, and profit for stakeholders. He has to perform many roles as a leader or administrator for managing an organization, operations of the company, decision maker for developing business plans and strategies etc.

CEOYou may have several subordinate executives under you for finance, marketing, human resource, purchase, etc. will also be responsible for the accomplishment of company’s vision and mission.

To accomplish all these things, he has to focus on many things; four out of those things should be done on regular basis.

  1. Read read and read

It is observed that once people leave their education they put reading on the back burner. One can see that all successful people are those who spend a lot of time on reading. They regularly acquire new knowledge, innovative ideas, knowledge about trends in business, as one can see there are regular change and advancement in all the areas of life.

You will remain abreast of all the changes happening your field, be it business, technology or personal. Reading can be in form of newspaper, magazines, editorials, company’s reports, watching the news, discussion and debate, change in government policies and/or guidelines etc. which helps you to reach next level of success.

  1. Set a vision

It is the CEO who sets the vision and implements for the company. You should be clear of your vision, should be specific of your company’s achievement of standards and targets in future and set the goals for the specific time period. Where you wish to take your company towards, say three or five or ten years from now, what will be the sales within certain time frame, what should be the culture of the company, what will be its financial condition etc.

You can achieve this by holding regular meeting with your subordinates, getting feedbacks, taking corrective measures if things are not on the right track and gathering invaluable experience on the way.

  1. Create a strategy

To make your vision a reality you have to make a strategy. No problem if you are not too well versed in say finance or sales or operations or marketing etc. but you will have to involve yourself in planning and approval process in all those areas which will have a long-term effect on the company.

You will have to build and get involved in making a strategy for sales promotion, business development, marketing and advertisement of your product, financial planning etc. This can be for any stage of your business cycle. Give and take advice on matters relating to your line of business. Share your experience, use the experience of others and develop the practical strategy with others related to the business.

  1. Cash flow

Cash flow is the lifeline of any business and you will have to keep a strict eye on it. Cash flow refers to the cash that the company will receive in future and cash that the company will pay in future. The net (inflow and outflow) also called business liquidity will help you to evaluate the quality of income/expenses of the company.

One should never run out of money. Especially if you are running for a long-term race. Paying all loans in time will help you to be in good books of the financer (banks, lenders) which can help you in the hour of unexpected crisis that may crop up during your business. Though you may have a chief finance officer still it will be better for you to regularly update yourself on this aspect of business strategy.

How to Make Your Business Financially Healthy?

Being the owner of a business, you have to take your business very seriously. Here you need to pay attention to growing needs of your business and number of your employees you hire. Your dedication and hard work will show in your productivity, and people’s liking for your products and your services. With all these things, here also you need to financially make your business healthy. For this, you need to find all possible ways that are beneficial for your business and help to make it always financially healthy. After all these things, you can become a successful businessman.

business healthThere are many businessmen, who are unable keeping their business financial healthy due to improper working or running the business. Therefore, they face many problems that occur during running the business and that keep them one step away from the success. For unsuccessful businessmen, here are some significant tips given below to assist in staying profitable and keep business financially healthy.

  1. Know your overhead cost

It is very important to know what your overhead cost include. Every successful business knows how much profit they can get or gain in each product or service after including their overhead costs. Overhead costs also include administrative expenses such as taxes and office supplies. Apart from this, many other expenses may also be included, such as facilities, tools and equipment, insurance and tax-related expenses, marketing and advertising, vehicle-related, employee-related expenses etc.

  1. Regularly keep an eye on your cash flow

To keep business financially healthy, there should be a good Cash Flow system. If a business does not take good care of its cash flow then it may have to struggle every month. You should know how much money you are earning on monthly basis. How much business expenditure is being made in each month and week? Good knowledge of these things will help you towards proper money management and bill management, which will help you stay financially healthy in business.

  1. Focus on monthly accounts

Businessmen should not wait for annual accounts to know their financial position. It should be done on monthly or weekly basis. They should know how much stock they supplies each week to be profitable in business. They should also check their financial situation on monthly basis, so that they can consider what they can do to improve the overall performance for the next month.

  1. Regularly update your financial ratios

For a good and successful business, a business owner should be aware of the business ratios which should be tracked, to be profitable. Because knowing the correct ratio can help them to decide that which direction is good for their business. Selling of which product is more profitable compared to other. Once you get the current ratio every month it will be easy to determine whether your company is moving in a right direction or you need to do some changes to your business plan so you can make better profit and take it in the right direction.

How to know entrepreneurship is right for you?

Be a BOSS of own business is a dream of everyone but the path of it is not an easy task. For this, you will not only have to prepare yourself financially but also emotionally. You will have to minimize your constant needs and extra expenses. Even after all this, there are some more things that you should know either entrepreneurship is good for you or not.

businessmanIf you are interested in entrepreneurship, then before starting better to ask yourself these questions, which will help to decide that entrepreneurship is right for you or not.

  1. Am I passionate and enthusiastic about my work?

You have to question yourself that have you made the right decision? With an open mind, think that are you interested in your work or not? As a business owner, you are also a major salesperson for your company, so it is important to have enthusiasm, passion and the dedication towards the work. All these things also affect your product and services. If you are constant with all these things, you definitely can attract more investors, if not then it is a bad deal for you.

  1. What is my tolerance for risk?

There is no business that does not involve a risk, everywhere there is a risk. Sometimes such situations can occur when you have to face difficulties, which may shake you financially and mentally. So, are you ready to face such situations? Do you have a strategy that does not have any effect on you in such conditions? Successful businessmen get success in their business when they take their business strategy along with them to face any kind of problems. They always have complete knowledge about the problems, which they may have to face during business. Therefore, before starting their business they are always prepared with their strategy to deal with such kind of situation.

  1. Am I good at my decision making?

If you want to be boss of your own business then you have to take all your decisions. Now it is time to think about how you can handle your initial decisions. There are many decisions you may have to take, such as, is this place or location good for your business? How many employees should I hire? Should I invest my full savings? Always keep in mind that decision-making process can be more complex over time. Once you rely on the employee or the client, the choices you make can bring success or failure. Therefore, you should believe in your ability to make the right decision.

  1. Am I ready to take many responsibilities?

Before entering the world of business, you will have to focus on special skills that you have. A business owner has to contribute everything to his business. They may have to take a lot of responsibility. A businessman has a lot of versatile roles to play depending on time and situation such as a purchaser or salesperson or accountant or manager. A successful businessman never depends on anyone and even they never shy to do any work.  They are always ready to take any kind of responsibility at any time according to demand of the situation.

  1. Am I able to avoid some habits?

There is a very simple proverb that to achieve something and get success, you may have to let go of some bad habits. Are you ready for it? At the beginning of your entrepreneurship, it can so happens that working seven days a week one may have to forego contacts with your friends, less time for your family members, keep your old hobbies on back burner, not paying more attention to personal needs and interests, unable to surfing internet for hours or to spend time on Facebook or WhatsApp or other social media. So, consider all things and be ready for it mentally.

Take your time, answering all the questions, if you get an answer to all these questions that suits the conditions then entrepreneurship is right for you.