Communication and Personal Growth – 5 Key Factors For Growing Yourself and Connecting With Others

How well you communicate is an indicator of your personal growth. The better you can connect with others, the more you will want to take on situations that stretch your self-development. The more “on purpose” conversations you have, the more you will seek opportunities to learn and grow.

All conversations come with some level of risk attached. Some conversations, such as an exchange between you and your dry cleaner, may carry little risk. Compare this to asking your boss for a raise or confronting a challenging client where you have at stake, and you’ll realize that higher risk conversations naturally increase your self-growth. The more frequently you engage in “higher risk” conversations the more you’ll feel confident and empowered to act on your own behalf.

Consider these five factors of effective communication:

Intention: Communicating with an honest and true intention is not as easy as it sounds. You’ll need a great deal of self-awareness to notice if your intention is purely for your own gains even if it is shrouded beneath the cloak of helping others. Consciously observe your conversations for a period of time and notice your true intentions.

Empathy: Much has been said about the ability to be empathic or the ability to vicariously experience the feelings of another. The truth is that without this component communication becomes hollow and lacks energy. It is the energy of empathy that promotes self-growth. Truly empathic exchanges can provide new insights and isn’t that the basis of personal growth?

Confidence: The ability to rely upon yourself, to own all that you know and to own all that you don’t, is the basis of self-confidence.This type of pure self-assurance is not “knowing it all” but rather the inner strength to declare what you don’t know but are willing to learn. The confident person says “tell me more.” The more you learn and put to good use the more you escalate your own development.

Engagement: Though engagement is a common business buzz word today with respect to involving employees, engagement is the key to avoiding misunderstandings. In a conversation it is more than active listening. It is the ability to integrate the interpretation of messages between parties. Your message may sound different in your listener’s mind than your intended message and vice versa. Engaging your listener means both holding their attention and interacting like a set of aligned gears.

Patience: It takes time to develop effective communication just as it takes time to develop personal growth. It takes fortitude to become proficient at handling difficult or higher risk conversations. Allow yourself the freedom of patience.

Take the challenge and increase the frequency of conversations that have more at stake and enjoy the rewards of becoming a more confident communicator.

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The Key to Personal Finance

Additional effort in managing one’s personal finances will result to a more positive usage of personal resources. With attainable, realistic goals, ones financial standing will progress in no time at all. However, for the part of the individual concerned, this calls for proper planning and monitoring. There is also a need to assess at some point to see if the goals set are being met or further intervention is needed to alleviate the financial condition.

Available Income:

  • Regular household cash flow
  • After Budget cash or net flow

Regular household cash flow is what remains after the expected yearly expenses are subtracted from the expected yearly regular income. After budget cash or net flow is simply what one ends up with after subtracting regular household liabilities from the known assets. The part of the regular income that does not go towards normal expenses is a very important resource that can be diverted towards other personal financial goals. A balance sheet should be able to determine the net worth before proceeding to plan further on how to save enough for bigger and more important purchases.

Factors to be considered if 50% net increase is desired:

  • Full liabilities
  • Outstanding debts
  • Investment Instruments
  • Savings yield- savings + interest gained
  • Outstanding student loans

It only goes to say that when liabilities decrease, a person’s net worth increases along with it. The number one advice for people with plans to progress financially is to avoid taking juicy bank loans on offer as they are ever-potent dangers to one’s credit score specially when the interest pile up. Recovery from debts will be a much needed boost to personal finance. The more payables are settled, the fewer the liabilities are and this carries a positive reflection on one’s balance sheet and also his credit standing.

Personal investments make up most of a person’s net worth and thus it is a perpetually good move to gain as much valuable assets as a person possibly can in the course of his lifetime. This is not to say that forethought should not be employed here but the contrary. Investing by buying up profitable assets should always be preceded by careful analysis, so that a purchase will actually add vigor to one’s portfolio. The general trend is that if you are the risk avoidant type of investor high risk investments are avoided. These are properties which have value that changes with the ebb and flow of time like real estate, precious metals like gold and other physical goods that are known to have volatile values.

The riskier among us, those whose mettle are undeniably more resistant to fear easily trade in stocks and other financial instruments of our time. In this type of assets, the rule goes that the higher the risk, the higher the possible gains. This kind of investments no doubt needs to be studied and studied again due to the very nature of it to avoid excessive losses and to catch gains when and where they are likely to …

7 Key Financial Ratios Every Startup Should Know

Apart from having a great product, good sales, good SEO, great marketing, and so on … there is one thing that is vital to the long term growth and success of a startup: good accounting.

And yes … you may not be as versed in numbers as your accountant is. But do understand: its essential to have a working knowledge of an income statement, balance sheet, and cash flow statement.

And along with that a working knowledge of key financial ratios.

And if these ratios are understood will make you a better entrepreneur, steward, company to buy and yes … investor.

Because YOU'LL know what to look for in an upcoming company.

So here are the key financial ratios every startup should:

1. Working Capital Ratio

This ratio indicates whether a company has enough assets to cover its debts.

The ratio is Current assets / Current liabilities.

(Note: current assets refer to those assets that can be turned into cash within a year, while current liabilities refers to those debts that are due within a year)

Anything below 1 indicates negative W / C (working capital). While anything over 2 means that the company is not investing excess assets; A ratio between 1.2 and 2.0 is sufficient.

So Papa Pizza, LLC has current assets are $ 4,615 and current liabilities are $ 3,003. It's current ratio would be 1.54:

($ 4,615 / $ 3,003) = 1.54

2. Debt to Equity Ratio

This is a measure of a company's total financial leverage. It's calculated by Total Liabilities / Total Assets.

(It can be applied to personal financial statements as well as corporate ones)

David's Glasses, LP has total liabilities of $ 100,00 and equity is $ 20,000 the debt to equity ratio would be 5:

($ 100,000 / $ 20,000) = 5

It depends on the industry, but a ratio of 0 to 1.5 would be considered good while anything over that … not so good!

Right now David has $ 5 of debt for every $ 1 of equity … he needs to clean up his balance sheet fast!

3. Gross Profit Margin Ratio

This shows a firms financial health to show revenue after Cost of Good Sold (COGS) are deducted.

It's calculated as:

Revenue – COGS / Revenue = Gross Profit Margin

Let's use a bigger company as an example this time:

DEF, LLC earned $ 20 million in revenue while incurring $ 10 million in COGS related expenses, so the gross profit margin would be 50%:

$ 20 million- $ 10 million / $ 20 million = .5 or% 50

This means for every $ 1 earned it has 50 cents in gross profit … not to shabby!

4. Net Profit Margin Ratio

This shows how much the company made in OVERALL profit for every $ 1 it generates in sales.

It's calculated as:

Net Income / Revenue = Net Profit

So Mikey's Bakery earned $ 97,500 in net profit on $ 500,000 revenue so the net profit …

Procurement Skills – The 6 Key Financial Skills All Buyers Should Have

The term "financial skills" covers a range of activities that a professional buyer or procurement executive needs to have if they are to deliver value for money and manage commercial risk for their organization. However, these skills are not always covered by conventional training which means that a buyer could be creating needless exposure both for themselves and their career as well as their organization.

There are six financial skills that everyone who works in procurement should acquire.

1. Financial analysis – this covers the use of financial ratios that enable you to identify suppliers who are under performing compared to their competitors or who might be financially vulnerable and so create a supply risk for you. Ratios compare one financial value with another in order to give you an insight into the way that supplier is run. For example, liquidity ratios look at the ability of a supplier to meet its short-term financial obligations by dividing the value of current assets (such as cash and inventory) with the value of current liabilities (such as creditors). Other ratios tell you how efficient the supplier is in turning sales into profit, generating sales from the use of assets and its ability to grow.

2. Activity based costing – this is a method that takes all of the costs of an organization and assigns them to the products or services that the supplier sells. The big difference between this approach and more conventional costing methods is that it first allocates costs to the activities that create those costs and then to products or services in direct proportion to the amount of those activities that they use in their production or service fulfillment. What this means is that you get a clearer picture of the true costs of making a product or delivering a service than you get from conventional means. The importance of this for the buyer is that they get an understanding of what drives costs and so what actions suppliers can take to reduce them which in turn lets them reduce the price to the buyer and still make an acceptable profit.

3. Understanding profit and loss accounts and balance sheets – the profit and loss account shows a buyer a summary of all the transactions a supplier has made in a period of time (such as a year) with the resulting profit they make and the balance sheet is a snapshot of the financial position of the supplier at that point in time. Accounting policies that the supplier adopts can make a big difference to the declared profit; for example, a supplier can choose how much to charge each year to the profit and loss account for an asset it has bought and this can have a major impact on the profit in any one year. Knowing what accounting policies a supplier uses can help a buyer to understand their accounts and so make sure that the financial ratios that are used to get an insight paint an accurate …