Buti James JB

25/12/2018

Tips for starting a small business

Opening your own business is often a learn-as-you-go process. But, the more smart decisions you make early on, the better chance your company has for success. If you have an entrepreneurial idea, try these tips.

1. Address excuses
Countless people dream of becoming entrepreneurs, but they never do. They’re burdened with excuses and fears of failing. From money to time to responsibilities, you can make a million cases for not starting a business.
Let’s face it, being your own boss is scary. In most cases, new business owners have a lot to lose with little insight into their chances of success. Worrying about the risks of business ownership is normal.

2. Absorb everything
Listen to what others have to say - friends, family, experts, even yourself. When it comes to things that have to do with your entrepreneurial goals, be a sponge. As you learn, start to work out the idea in your head. Write things down. Keep notes from all the resources you come across to develop a detailed plan.
When you tell people about your startup, read their body language. Do they like the idea? Or, are they just being nice and really think you’re going in the wrong direction? Encourage your listeners to be honest with you. The collective opinion you get from peers could be a reflection of how consumers will react.
Don’t ignore the power of advice from experts and veteran business owners. These folks know first-hand what does and doesn’t work. Smart entrepreneurs learn from the mistakes other business owners have made.

3. Be a solution
Rather than starting your idea with what to sell, think about what it will solve. It’s a lot easier to gain a solid customer base when your business is fixing a problem. Your startup should fill a hole in a certain market or niche.

4. Keep it simple
If you’re like many entrepreneurs, you have a business idea and you’re ready to run with it. Be careful not to let your concept snowball into something over complicated. You could end up with an expensive, elaborate end-product that nobody wants to buy.
As a new business owner, try to start small and narrow your focus. Learn how to test your business idea. Create a simple, quality good or service. A successful business idea should fulfill promises to customers and exceed expectations.

5. Count the costs
Once you start to develop your business idea, add up how much it will cost. You will need to factor in every business expense necessary to launch and operate. Some costs to keep in mind include your location, rent, supplies, marketing, and more.

6. Imagine yourself with zero money
I mean zero. There is a high probability that this will happen. I’ve heard several businesses not making it for the long haul. And, they have come close to bankruptcy.
Launching an unsuccessful business idea is a reality for many entrepreneurs. Over half of new businesses fail within the first five years of opening. How would you handle having no incoming money?

7. Earn while you build
If you want to start a small business, don't quit your day job yet. Launching a successful startup is a process. Build your business in stages and gradually transition from employee to entrepreneur.
As a new business owner, it will take some time to earn a steady income. Keep your nine-to-five and work on the business during off hours so you can earn during those tough, first stages. Once you have a healthy inflow of cash from your company, you can tackle business ownership full time.

8. Speak up about your business
One challenge many business owners face is that they don’t know how to sell. It can be intimidating to share your business with the world, especially when you’re new.
If you’re worried what people will think about your business, you need to get over it. If you can’t convince consumers to buy from you and support your company, it’s difficult to make money. Not outgoing? Fake it ‘till you make it. If you really want business success, you can’t afford to be shy.
Be ready to speak confidently about your business, even if it makes you uncomfortable. As a new business owner, you will need to market and network constantly. From networking with clients to negotiating supplier payment terms, you must be able to communicate.

9. Know the legal requirements for starting a small business
Starting a business is exciting. Laws are not. But, you need to understand the rules that come with opening a business. If you fail to follow government regulations, you could face steep penalties.
From forming a legal structure to setting up an accounting system, you must follow laws. You need to register the business with your state. You must also take care of business - specific tax liabilities. And as you hire workers, you need to follow employer laws.

10. Balance passion with wisdom
One of the most important ingredients in a successful business idea is passion. Passion will consistently drive you to improve your process so your business grows.
Don’t let passion take over all your decisions. Passion will move you forward, but knowledge will point you in the right direction.

Final thought:
As your business starts to come together, think of it like driving a car. Let your passion hit the gas pedal and your mind control the steering wheel. That way, you can be confident about the direction you’re headed and sustain the momentum you need to get there.

Complied by JB!

03/10/2018

Employee’s Productivity

Employee productivity is difficult to measure, do not confuse effort with results, an employee can work fewer hours and finish more projects.

But how can we get an employee to work fewer hours and have more tasks and finished projects?

In the vast field of business management, we find many managers and great figures advising us how we can increase the
productivity of employees. The same words always come to us;

1. Don't be afraid to delegate
2. Match tasks with qualities
3. Communicate efficiently
4. Keep goals clear and focus
5. Give feedback to each other
6. Be a role model
7. Cut the excess
8. Think big picture
9. And many more.

Knowing all this information, how is it possible that we cannot get it?

The answer is, reduce delays in your projects.
The failure of IT costs the US economy about $ 50- $ 150 billion annually. [source: Harvard Business Review]

We have the perfect team, perfect money, proper planning, even so, we still have delays in projects and tasks. It must have something that is wrong!
The perception of time and space should not be right.

How can the employee ensure timely delivery of their tasks and projects?
All the advice received by managers and significant figures, we can group it into three categories:

1. Planning
2. Leadership
3. Communication

With these three categories, we can manage to finish tasks and projects on time.
Once the expected productivity reaches, how can we get the employee engaged to the company?
Those same figures give us some excellent advice:

1. Engage from the first day
2. Give them a voice
3. Be transparent
4. Engage after work
5. Support personal and professional development
6. Provide help to the employee and co-workers
7. Say thank you

They all agreed on one thing: talk, communicate and ask your employees.
Companies should train their managers to educate and motivate their employees. An employee who is motivated stays committed and loyal to the company and even works happier and more efficient. Happy employees always share their ideas to improve the company.

Final thought: The best way to compromise is to embrace new ideas and try to implement them in the company or department.

If you agree with this article, kindly share your thoughts.

JB.

29/09/2018

Professional Development
As professionals we must adapt, grow and merge into the global world, with ease, at our pace and with confidence. How?
1. Create Your Own Style
Our tendencies are to see how the most impressive guys are talking walking or behaving. You don't want to be a replica of someone else, you want to be yourself. Find your style that makes you the most comfortable and stick with it. Something you can explore and develop over time, so if you start to get tired of one thing, you can easily move on to something new. But feel comfy. Make this group your family
2. Practice and Manage English
English being globally accepted is preferred everywhere. Like it or dislike it. So work on your English proficiency by listening to English news, reading English newspapers and magazines. And always use simple words of general interactions.
3. Leave Ego Behind
Leave your ego behind - An individual need to hide his ego everywhere he goes. Be it office or workplace you need to leave your ego behind if you wish to win appreciation from others. An individual who is good from within is loved by all. It may not win too many friends but believe me you will win many moments of endless joy not comparable to anything else.
4. Don't Avoid Socializing
You should not avoid having social interactions with other people. If you're an introvert, yes, this will be a challenge, but more than extroverts, introverts need to stretch themselves to socialize so they don't feel isolated or lonely. Just seek out opportunities. The more you delay or avoid social interaction, the less attractive you will feel yourself because you will feel worse about yourself and appear disinterested.
5. Body Language
Body language plays an important role to judge a person’s confidence and personality. Try to make use of positive gestures while interacting with others. This shows that you’re at ease while having discussion. Do you know more than 75% of our communication happens non-verbally - through our smile and eyes, our hands movement and our standing or sitting positions. Your gestures play a vital role in a meeting or network.
6. Socialize
Like it or dislike it. If you are in profession, then get to the social means. To talk. To being available. Man is a social animal. Everyone has to interact with a group of people one time or the other. Start talking in your circle. Enable yourself and your children, friends to start sitting with elders.
Always read online news. Stay updated with the current affairs and what is happening in our society. In our profession. Try participating in group discussions. You are never wrong. You are only sharing opinion. This will help to be more open and adjust amongst individuals.
7. Be an Observer, a keen Listener
Be a keen observer. An enthusiastic listener. Observing and listening is a very essential part. This will help you to see things from the eyes of others. Mental presence is a must to be good observer and listener. Ask questions and share opinions to let the other person know that you were listening to him/her.
8. Smile and Positive Look
Smile a lot - Nothing works better than a big smile when it comes to interacting with people around. Do not forget to flash your trillion-dollar smile quite often. Believe me, it works. Wear your smile while interacting with others. Smile not only helps in enhancing an individual’s personality but also winning other’s heart. And attracts others. Don’t laugh loud, it’s about smile 😄. It is really essential to think positive. Remember there is light at the end of every dark tunnel. Do not always think negative as it demotivates you and also makes you dull and frustrated. Be a little flexible and always look at the broader perspectives.
9. Be Assertive Not Aggressive
While there are plenty of times when you will want to be assertive, this does not mean that you need to be aggressive. Being aggressive is a big turn off to people, both in a social situation and in a professional situation. If you have a tendency to be pushy or controlling, be honest with yourself about these unattractive qualities, and work on reining them in.
10. All above adds to your reflecting Confidence
A person’s confidence might go down due to mistakes, failure, guilty or any other thing which is undesirable. Some people often develop inferiority complex due to their physical appearance, tone, job, religion or caste, financial status, job grade or level etc. Your confidence reflects your character, attitude and passion. You should be confident about who you are and whatever you do. Being confident will help you to express yourself and stand with the crowd - not ahead of the crowd.

JB.

19/09/2018

Contracts and Dispute Resolution

There are three commonly used methods of resolving disputes without going to court:

Negotiation
Mediation
Arbitration

Negotiation

Solving disputes through negotiation is a part of everyday life. For instance, in a situation where your teenager asks you for the car keys, after some discussion you reach an agreement on conditions for using the car and when to return home. This is an example of negotiation. You can refer friends, office who will.

Mediation
People involved in a dispute can ask a mediator, an unbiased and impartial person, to assist them in their negotiations. Where negotiation has not been successful, the mediator can often help to ease tension and encourage discussion between the parties. The mediator can help the parties themselves find a solution that can often result in a "win-win" situation, where everyone is satisfied with the result. Participation in mediation may or may not be voluntary. It depends on you and the type of meditation. Practical examples are certain family disputes, business disagreements, contract disputes, insurance claims, as well as employment and environmental issues, to name a few.

Arbitration
When people in a dispute cannot resolve the dispute themselves, either through face-to-face negotiation or with the assistance of a mediator, they can agree to refer the matter to arbitration. In arbitration, a neutral person or panel of people hears the facts and issues and makes a decision. Arbitrators are often people who are experts in a specific area of the law or a particular industry, especially in cases where the decision-maker needs to be knowledgeable about a particular subject matter or business practice.

Arbitration tends to be less formal and quicker than going to court. The parties can agree in advance on the ground rules for the arbitration. The arbitrator then makes a decision based on the facts, any contract between the people, and the applicable laws. The arbitrator will explain how the decision was reached. Whether you need to listen to Arbitrator or not is decided before hand on the basis of what you agree with other party and/or as decided by corporate

Just for information to keep in mind,

"Dispute Resolution" (DR) is the term used to describe a variety of ways of dealing with disputes, including the option of going to court.

"Alternative Dispute Resolution (ADR)," is a solution that comes up without going to court.

When Should Disputes Be Left to the Courts to decide:

Any contract dispute that ends in violence.
When this has to be a major reference or an example for other similar disputes.
Where there is a need to establish precedent or where the result will end up affecting several families or organizations and the cases may have to be referred to courts.

As a buyer, very very important of handling a dispute. Important things of informing dispute:

Make sure you notify the right contact, clearly. Address your letter to the person who is responsible for supervising the person or area you are having trouble with, or write to the head of the business or organisation.

Branding – how you inform is important, not in verbal, not by a mobile message or a casual email that may look serious to you. If you have a business letterhead, business logo or brand, add this at the top of your letter. It will make it look more professional.

Content – Set out your subject and dispute clauses, give complete contract reference and contract background information.
Make it clear in your communication that you are looking to resolve the situation professionally and quickly. Avoid laying blame for the situation.

Attachments – Dispute has to be understood clear in completeness. Correspondences thereafter just to understand context, mail after mail, will defeat the purpose and reduce gravity. Attach copies of any relevant paper work to your letter. For example, a copy of your contract, an email, a list of specifications, .a quote, an invoice or any other document that supports your Letter of Concern.

Just sharing these for reading reference compiled of experience from procurement professional experience and best practice compiled from web. End of day, we do not intend to reach Arbitration or even Mediation if you as a buyer can put a clear and complete contract aligned to both parties by pre-agreement and mutual consent. More importantly, have a very high degree of professional and effective rapport with your suppliers where any concerns on understanding and perceptions are resolved by mutual agreement. Obviously, if this does not work out, the above helps.

Best wishes

17/09/2018

Inventory reduction strategies by Buti James JB
Inventory comprises an important part of current assets, particularly in manufacturing industry. A lot of cash flow is committed to inventories so as to ensure a smooth flow of production to meet a demanding customer service level. However, maintaining inventory also involves holding or carrying costs along with opportunity cost. Therefore, identifying inventory reduction strategies becomes critical for supply chain and operations professionals.
Inventory management therefore plays a crucial role in balancing the benefits and disadvantages associated with holding inventory. Efficient and effective inventory reduction strategies go a long way in the successful running and survival of a business firm.
Here is List of Inventory Reduction Strategies you can Try to Improve Inventory Turns
1. Reduce Total Supply Chain Lead Times
A reduction in total supply chain lead-time will lead to products / materials not being held in stock for a long time. Both a reduction in supplier lead-time and manufacturing lead-time will contribute to inventory reduction. To reduce lead-time, the throughput, WIP and cycle time will need to be measured in order to get a realistic estimation of a reduction in lead-time. This in turn will reduce the risks related to holding inventory for longer periods of time.
2. Reduce Manufacturing Lead Time
Whilst I have seen a lot of focus in reducing the total supply chain lead-time and/or supplier lead-time, there is, however, not enough focus in reducing the internal manufacturing lead-time.
When considering the planning method, you are using, you should consider manufacturing lead-time in the total planning lead-time.
3. ABC Analysis
Using Pareto ABC analysis will help determine which inventory is used most often. In very simple terms A is the inventory that is used the most, B- product that are important but are used less frequently and C these are products that are rarely used. “A” classification products are ones that are used frequently and can therefore be ordered in a small quantity, or be delivered Just in time and will require less safety stock, and C products can be ordered less frequently but with more safety stock kept. In my experience this is the most effective method of inventory reduction and fast!
4. Improve Supplier Rapport
Having an improved relationship with suppliers is highly beneficial not only to the whole supply chain but also with inventory reduction. Having a rapport with the supplier will mean that communication between the parties is effective. The suppliers have the best knowledge of product they produce and this can be utilized with a good rapport as this information can be shared. By having a good relationship with the suppliers, communicating will be easier.
5. Smaller Order Sizes
Ordering a smaller volume of inventory, more frequently is beneficial for the company to manage cash flow and also inventory reduction. Depending on the product this will reduce costs associated with keeping a higher volume of inventory. As a result, the inventory on hand will be low but the frequency of replenishment will be higher. Having less inventory reduces several risks associated with keeping inventory e.g. issues that can cause a product to depreciate in value.
6. Reduce Obsolete Stock
By identifying, re-purposing or removing obsolete inventory the volume of inventory on hand will decrease. With this, both direct and indirect costs of keeping the obsolete inventory will be reduced. This closely links to reducing order sizes as a smaller volume of the inventory will be in stock and as a result, fewer inventories will be in stock to become obsolete.
7. Conduct Regular Safety Stock Review
Once Made to Made-to-Stock (MTS) items have been identified post-ABC Analysis, planners should review the safety stock every 6 months (may be every 3 months in some cases) as a minimum as one of the most essential inventory reduction strategies.
8. Check Aging and Reach of Stock (ROS) for your inventory
One way to find out what inventory to target is understand what items you are carrying are more than 12 months old, meaning, they are not turning faster and need special focus actions to reduce them.
Reach of stock is a simple analysis, which identify how many days’ certain stock inventory will last based on historical demand.
9. Pull Based Demand / Replenish Based on Demand
A way for inventory reduction is by having a pull based demand system or JIT System. This means to only manufacture the product once it has been made therefore reduce the risk of obsolete stock as all the materials ordered are being used to make the product. This is different from making a product then selling it therefore as the demand is not certain, this will make forecasting easier. Therefore, reducing inventory as it is only ordered when it is needed (this needs a good supplier rapport and short lead time.)
10. More Accurate Forecasting
Having a standardized reliable way of forecasting demand will mean that excess stock is not ordered and will reduce the chance of obsolete stock. Utilizing all the data available and using up-to-date technology can help with reductions. Having a more streamlined supply chain with information being passed along and shared can also increase the chance of a better forecast, as more information is available.
11. Better Measuring System
Implementing a system that will recognize when a product needs replenishing and is dynamic can also be useful. Using a system that can change how much to order not only by using how much current stock is on hand but by also a change in trends will help reduce the chance of obsolete stock and excess stock.
12. More versatile components
Using a material or component that is versatile will result in inventory reduction. Ordering a material that can be used in many different products can reduce the inventory on hand. This is because the one material can go into several products. If the material has a high inventory turnover, then it can be ordered in a smaller quantity often as above.
13. Highest Spend Supplier should be on VMI or Consigned Inventory Programs
Move inventory upstream in supply chain by using Vendor Managed Inventory (VMI) or Consigned Inventory Program. With Strategic suppliers who supply high value, volume and frequency items can keep a minimum and maximum stocks for you as long as you can cover the liability of that inventory. That means you can simply cut the manufacturing lead-time and pull from stock, in turn reduce your safety stocks and/or cycle stocks.
Final Thoughts:
A consistent use of these inventory reduction strategies over the next few months will help your business to remain competitive and decrease inventory, while reducing operating costs and improving customer service.
Furthermore, the inventory management strategies will augment business operations by the effective and efficient flow of goods and services. It adds to profitability, competitiveness, service optimization and market diversification.
Note: If you like this article or have any other inventory reduction strategies to add please add in comments below.

15/09/2018

"if you always do what you always did, you'll always get what you've always got."

lets share - lets write - lets coach - lets optimize

Supply Chain Analyst and Business Strategist

15/09/2018

Kaizen as a cutting edge in Business and supply chain Management.
Today’s business environment is ultra-competitive. Smart businesses are opting for better practices and operations that focus on eliminating waste, reducing costs, while also creating an environment that supports continuous business growth. 5S Kaizen help you achieve all that.
Kaizen is a part of the lean manufacturing system which was developed to maintain a continuous improvement in processes. 5S is the foundation of Kaizen. It aims to achieve a visual organization, cleanliness, and standardization.
What Does 5S Stand for?
This is a question that business owners and managers looking into the 5S system are interested in. The 5S methodology is built on 5 pillars: Sort, set in order, Shine, Standardize, and Sustain. Its ultimate goal is to eliminate waste, boost productivity and improve the bottom line.
To help individuals and business to capitalize on the below-mentioned benefits, I have developed a detailed 5s Kaizen Guide. Organizing the workplace for flow. The guide aims to help supply chain professionals establish the trust and skills needed to go the distance with lean. It puts the shop and office in order, eliminates the “low hanging fruit” of process waste, and establishes the discipline required to implement more advanced continuous flow techniques.
Key Benefits of the 5S Kaizen to Businesses
1. Increased Productivity and Efficiency
5S elements are geared towards making every aspect of business organized. Therefore, enterprises that embrace the system become more efficient. For instance, if all items in cashier station are uniformly labeled and organized, any of the employees can step in and start serving customers. As a result, the cashier will spend more time serving customers rather than being distracted by non-productive tasks or pursuits.
2. Increased Workplace Safety
A well-structured workspace reduces accidents and successively creates a safe environment. The 5S safety-first procedures require employees to keep aisles free of clutter, to immediately clean spills and to store items in the right place.
This is especially beneficial for businesses that need to comply with the Occupational Safety and Health Administration regulations. Storing frequently used items close to the workstation and in ergonomically sound locations reduces unnecessary movement and also reduces potential injuries like carpal tunnel syndrome caused by repetitive tasks.
When a work area that is clean and well organized, there is less tendency of tripping hazards and any other physical dangers to occur.
3. Reduced Waste
Implementing 5S Kaizen leads to a reduction of lost or damaged items in a workplace. A clean, organized workstation with properly labeled tools enables employees to decide on what needs to be replaced and repaired in their designated places; this minimizes the number of damaged, misplaced or lost tools. Proper management of tools helps to eliminate the damage caused to tools parts and products.
4. Effective Cost Control
A business embracing the 5S system can lead to a significant reduction in direct and indirect costs. For one, better organization leads to the more efficient use of storage space. Secondly, employees are less likely to lose or misplace inventory items.
For manufacturing businesses, the routine cleaning and preventive servicing make it easier for employees to spot and address any problems with machines before the issues compound and lead to costly repairs. Because 5S kaizen engenders a safer working space, it can decrease business and insurance costs.
5. Improved Employee Morale, Commitment and Customer satisfaction
Every step taken in a 5S system works to provide customers with more value and ultimately increases customer satisfaction. For instance, most customers aren’t interested in your cleaning routines or how the cash station is organized, but they do care about a well-organized and clean store and fast moving checkout lines. This is a big plus for supply chain management.
Because the implementation of 5S Kaizen requires employee participation, it leads to increased employee engagement and creates an environment in which employees take greater pride in their work and contributions.
Conclusion:
5S is a cost-effective and accessible lean technique. It lays the foundation for other lean techniques. Thus, it is an excellent system to adopt for business owners who want to improve the overall business performance and operations.