Posts Tagged ‘owner’

by USDAgov

How Human Resources Can Improve Business Owner Wealth Accumulation And Shareholder Value: Part I

If a company could get verifiable human resources expertise, services and products for a reasonable investment, and the mission was to assist in going after some of the profits being left on the table, and proactively work to minimize the chances of the disaster happening would that be a sound business decision?

This is the first in a seven part series which will explore how human resources can have a significant and measurable impact on a small business and shareholder value. Our mission will be as follows: To improve Shareholder Value (or Business Owner Wealth Accumulation) in our Client Companies by delivering Human Resource Services in a strategic manner that impact each Client’s Profitability and Business Value.

To accomplish this lofty goal it is useful to introduce the following model: The key to providing this kind of shareholder value is to first determine the

leverage points where human resources can add real value. These include:

Turnover: the real cost drain is usually much larger than most companies understand

Inability to attract top quality employees can significantly hold back a company’s                  financial growth.

Employee Productivity and Performance: monitoring and improving this can have a big financial upside

Additionally there are some direct Employment Costs that warrant Long Term Cost Containment initiatives

While we can’t operate without employees, they also pose a huge liability, so Asset Protection strategies are necessary to prevent potentially devastating losses there.

And last but not least, leveraging employees resources, especially at the top can keep your vision on track. When looking at the contribution human resources is capable of making I think we need to view the function in a similar light of our other trusted
advisors.

Your CPA firm is your trusted advisor in all matters related to the financial aspect of your business. The same is true of your law firm related to all things legal. To enjoy the full benefits that human resources has to offer I would suggest that a similar arrangement needs to occur.

By understanding the company’s goals and strategies, and getting a grasp of what possible human resource problems are present, we can design strategies and tactics to accomplish those strategies and fix those problems. Why bother fixing the problem at all? How much could this possibly cost me? Again, fair questions so let me provide a quick example. Let’s look at the following company.

30 Employee Company
,000,000 Annual Revenue
Net Profit 8% equals 0,000 per year

If we could raise current productivity from 70% to 100% the total increase in profits would be 0,000 over a five year period. Impossible you say? Of course it is because we are dealing with people and 100% is not achievable. But what about 80%, 85%?

In the next article we will look at Asset Protection Strategies and ways that human resources can add value and PROFITS to your business.

Jeff Stinson is the President of Global Human Resources Outsourcing (GHRO) a full service Human Resources outsourcing and PEO in Irvine California. GHRO specializes in helping companies grow by better utilization of their people. Jeff has been involved in the management and development of human capital for the past 29 years. Before founding Global Human Resources Outsourcing (GHRO) he ran a successful Human Resources consulting practice (JDS Consulting). Prior to JDS Jeff functioned as a senior human resources executive for several companies.

More Human Resources Articles

by Conor Lenihan

Business Finance Expert Series: “what Every Business Owner Needs To Know About Factoring”

Factoring is a promising way to stimulate the cash flow of a company. Its growing popularity can be gauged from the statistics that factor finance approximately amount to billion in United States each year. In United Kingdom it represented a total volume of £104.4 billion in 2002.

However, before leaping on the factoring (http:// www.hjventures.com/factoring/factoring.html ) bandwagon it is important for the business owner to know what makes a business suitable for factoring?

- Before making any decision the owner should have a list of his customers and they should be in sufficient number

- No customer should contribute over third of the turnover

- Customers are needed to accept the standard payment terms of the industry.

- Period of credit given to the customers should be reasonable

Following factors make a business unsuitable for factoring:

- When there are too many small invoices ( http://www.hjventures.com/factoring/invoice-finance.html )

- Factoring is unsuitable when it is sold to the public. It is only available for sales to commercial customers

- There is a provision for the customers to make part payments

- When there are many disputes and queries

- The business is not reliable, credible and sound in its operations

It is very important for the business owners to have a good understanding of these factors as they will be sharing important financial information of their business and will be in direct contact with the customers too. Earlier factoring was not widely used due to the ignorance of business owners regarding the benefits factoring could bring in to the company. Thus it is important for every business owner to be aware of benefits of factoring before using it in their business.

Learn more about factoring / business finance : http://www.hjventures.com/factoring/factoring-glossary.html

We have a second home that was our original first home. We rented it out for a while (three years) and the tenants (family) are buying it from us now. We would like to report monthly their payments..balance and so on. We feel that they deserve this, but do not know how to go about doing so, since we are not a “business” or actual finance company. I would like to know if anyone knows how to go about doing this. Thanks.

I don’t have a lot of money for a down payment but I do have a solid and stable income. I found a house I like for sale with an owner willing to finance. And I have a trustworthy experience agent.

The question is how does the agent make money negotiating for me in this situation?

I am renting with an option to purchase. I paid a $2000 down payment to the owner and I have been paying $575 every month on time since. I have to get financing to pay him off, with the $2000 deducted from th selling price. What type of financing do I need being that I have been living in the residence for over a year?

In other words, what time-consuming activities have to happen before closing, when the owner providing the financing is already satisfied of the property’s value and condition, so there is no need for additional inspection, appraisal, etc.?

I assume the key issues are paying off the owner’s mortgage, recording the owner-financed mortgage, and getting the title transferred to the new owner. But do those get done before or after closing?
The owner’s liquid assets plus the seller’s down payment will add up to enough to pay off ther owner’s mortgage.

How does that work, i don’t get it

we have a chance to purchase a house with owner financing but are being told that we have to notify them of any major improvements on the property….that sounds more like renting with the option to buy to me….can you please clarify the laws pertaining to this?

I have income that I need to classify for the accountant. My boss sold some owner financed notes to a third party. I don’t know how to classify the income.

I have a home that I am interested in selling and am looking at various ways to entice buyers in this tough market. One option told to me was owner financing the property. What are the pros and cons as a person that would be financing my property? Also, what would be the difference if I still have a small mortgage on my property?
The property is in Pennsylvania.