Business: THE “SEVEN Cs”: PARTNERSHIP DANGER SIGNS - The 4th C: CUMULATIVE MONEY PROBLEMS

THE “SEVEN Cs”: PARTNERSHIP DANGER SIGNS - The 4th C: CUMULATIVE MONEY PROBLEMS

Written by Dorene Lehavi

A series of articles exploring repparttar

seven critical areas that can indicate a partnership is in trouble. The 4th C: CUMULATIVE MONEY PROBLEMS Conflicts over money are very high on repparttar 103828

list of reasons that 70% of business partnerships fail. I'm not referring necessarily to lack of money. The damage to business partnerships stem from repparttar 103829

fact that each of us have different attitudes about money and therefore handle it in different ways. The most hopeful scenario is that differences have been discussed openly at repparttar 103830

outset of

partnership and are continually a topic reviewed with level heads. Most often that is not repparttar 103832

case. Here is a sample list of repparttar 103833

types of problems businesses run into around money where partners can have very opposing views: •financial risk taking •collections •investment of profits •family involvement on acquisitions •under-capitalization/ involving outside investors •perceived inequality in remuneration of each partner based on each one's view of each other's work and responsibility •hiring and salaries of employees •investments in outside experts to train, coach, market, etc. The money issues in business that accumulate over repparttar 103834

course of time are based on many factors, some personal, some internal to repparttar 103835

business and some on outside forces beyond anyone's control. Bill and Vincent were investing in a new business. Vincent was unemployed with limited funds, so at repparttar 103836

outset Bill did repparttar 103837

financing. There was growing tension between them because of this. Bill felt he had more right to make decisions. He also had a subtle way of belittling Vincent because of it. How could such interaction be a good basis for a new business? They were wise enough to seek coaching, during which I helped Vincent spell out repparttar 103838

behavior that was not obvious to Bill. Vincent on his own was too uncomfortable to communicate clearly how he was feeling. When it was out in repparttar 103839

open in our coaching sessions they were able to make some changes so Vincent was able to contribute more in ways that made him feel respected. They also set some goals and deadlines for adjustments in repparttar 103840

financial contributions.

Is Your Company Safe From Attack?

Written by Arthur Cooper

Yesterday I read an article in repparttar

daily paper that contained some rather alarming figures.

A survey of British businesses found that fraud, money laundering, and embezzlement cost them over £40 billion ( $72 billion) a year. The average loss of repparttar 103827 companies surveyed was over £1 million, whereas repparttar 103828 loss to repparttar 103829 top 100 companies (those in repparttar 103830 FTSE 100 index) was £5 million. Companies were reporting losses of up to 5% of turnover.

The significant fact about these figures was that this was only what had been detected. The real losses are certainly many many times greater. And to make matters worse these figures almost entirely represent what is ‘inside’ crime. That is, it is crime committed by employees or by outside temporary staff contracted at repparttar 103831 time to repparttar 103832 company.

And furthermore, a large number of repparttar 103833 companies had no insurance cover to protect them from repparttar 103834 consequences of this type of activity.

So what are repparttar 103835 lessons to be learned?

1. Don’t imagine that it can’t happen to your company.

It can happen, and most probably will. The bigger your company, repparttar 103836 greater is repparttar 103837 scope for undetected crime against it.

2. Consider your vulnerabilities.

Are your financial controls sufficient? Are they rigorous? Are they foolproof? Can you trust repparttar 103838 people in charge? Are there checks made on repparttar 103839 work done? Are you sure of repparttar 103840 honesty and loyalty of your staff? Were their references ever followed up when you took them on? Pay particular attention when you take on temporary staff.

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