Tag Archives | vendor

How to Hire New Employees

How to Hire New Employees

Hiring new employees is one of the most challenging tasks business owners face. You can take the fear and anxiety out of the process – and ensure you get the best prospect for the job – by developing an incremental, systematic approach and staying focused on the process. There are four simple steps that cover how to hire new employees.

Remember this: if you don’t change the system or process of hiring that you’ve been using thus far, then you’ll simply get more of what you’ve already got. Here’s a proven four step recruiting system that if followed carefully will ensure you hire the best candidate for the job every time.

Define What You Are Looking For

Define what you’re looking for carefully. Before you even begin looking or telling people you have a position you’re looking to fill – assess your present situation and define your ideal organization chart. Is your current staff in the best positions? And then, for this new / open position – have you fully defined the job and documented its responsibilities and requirements in a job description? What will the ideal candidate look like? Draw this picture before you even begin looking.

Attract a Large Pool of Applicants

Attract the largest pool of applicants your time and budget will allow. Be prepared ahead of the need arising with an up to date database of all your contacts. Research a wide variety of job posting resources that make sense for your business – develop a list and keep it updated. These would range from newspapers and industry newsletters, community organizations and churches, to temp agencies to web sites. Spread the word and share the job description with all your current employees, customers, vendors and other personal contacts.

Compare Applicanta

Compare each of the applicants who contact you two ways: compare each to your requirements, and then compare the qualified applicants to each other and rank them from most to least suitable. Implement multiple levels of screening and you’ll waste less time in lengthy interviews with under-qualified candidates. After you have developed a short list of applicants – invite them in for a structured test situation where they perform the essentials of the position in real time while you observe the results. Also assess your short list with one or more of the variety of assessment tools available to make sure you’re making an appropriate selection.

Sell Your Ideal Candidate

Sell your ideal candidate on the job. Remember the hiring process is a two way street. You’re interviewing them – and they’re assessing you. The stronger more desirable candidates will always have more opportunities. Do you have a strong vision and mission for your business that you can effectively communicate with enthusiasm and sincerity? You need to enroll and inspire in your vision to get a strong team member to join you. Another common mistake in hiring is ‘selling’ too soon. Be sure you haven’t skipped any of the previous steps so you don’t wind up selling the wrong candidate.

The hiring process is critical to the growth of a strong healthy business. Turning it into a systematic, incremental process can take the fear and anxiety out of the process. Having a system in place for making hiring a routine process will ensure you are not trapped with retaining poor performing staff because you fear having to hire replacements.

In order to determine which candidates are the right fit for your company, download and access your free white paper, 5 Guiding Principles For Recruiting a Star-Quality Team.

how to hire new employees

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how to hire new employees

See Also:

How to Run an Effective Meeting
How To Train People For Success
Future of the Accounting Workforce
Recruiting a Winning Team
How to form an Advisory Board
How to Hire a CFO Controller

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Delivered Duty Unpaid

See Also:
Delivered Duty Paid (DDP)
Freight on Board (FOB)
Delivery Order
Ex Works (EXW)
Cost of Goods Sold (COGS)

Delivered Duty Unpaid

Delivered Duty Unpaid or DDU is the contract assuming that a vendor or seller will assume transportation costs associated with an international or overseas sale. Furthermore, the buyer will assume all of the import/export fees or duty fees.

Delivered Duties Unpaid (DDU) Meaning

Delivered Duties Unpaid means that a seller will assume liabilities and costs associated with delivering goods to a country. However, the buyer assumes the duty fees or costs to bring the product into the country. Unless specified in the DDU contract the buyer will also assume all liability once the product has entered the desired country. This is something that is often negotiated between companies. DDU talks are often decided in association with the riskiness of that particular country.

For example, if a U.S. firm is selling to a company that is centered in a high risk or war plagued country, then there is little chance the U.S. firm would want to assume the responsibility of delivery within the country. Negotiations for delivered duties unpaid are not that different from the negotiations that take place domestically. DDU is essentially the same type of negotiation that occurs for Ex Works and Freight on Board.

delivered duty unpaid

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Delivered Duty Paid (DDP)

See Also:
Freight on Board (FOB)
Ex Works (EXW)
Delivery Order
Delivered Duty Unpaid (DDU)
Cost of Goods Sold (COGS)

Delivered Duty Paid (DDP) Definition

Delivered Duty Paid or DDP means that a seller or vendor has assumed all of the liability as well as the costs associated with transportation internationally.

Delivered Duty Paid (DDP) Meaning

DPP means that a vendor has agreed to a contract with an overseas or international partner to assume all of the liability and transportation costs. In addition, the concept of delivered duties paid is almost the exact same as freight on board or Ex Works. When a DDP agreement has been met, the buyer will not assume any transportation costs or liability until the goods have been delivered to the country. Delivery within the country is the buyer or customer’s responsibility unless otherwise specified in the delivered duty paid contract. Furthermore, such terms are often worked out in a delivered duties paid contract. Finally, most of the transportation costs associated with a DDP transaction are import/export tariffs along with normal operational cost of a truck or container ship.

delivered duty paid

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Damage Claim

See Also:
Secured Claim
Unclaimed Property
Evaluating and Renewing Employee Health Insurance Plan
How to avoid additional insurance premiums
Third Party Insurance

Damage Claim Definition

A damage claim, defined as the claim of damages, to a liable or insuring company, which result in financial loss from an associated victim party, are a common legal concept. In a damage claim, there is a victim and an alleged damaging party. The damage claim seeks to repair the damages of the victim party when the damaging party is at fault. Usually, damage claims come in the form of monetary payment. Other times, the damaging party is responsible for seeing that the damages are reversed or fixed. In either instance, the damaging party will most likely make a payment, either to the victim or to the service provider who fixes the damage. A full damage claim report will be needed to present the case to vendor, insurer, or court officials.

Damage Claim Explanation

A damage claim is explained as the path to reparations when one has experienced damage at the fault of another. It is common in the personal as well as the professional world. In business, a damage claim is particularly common. In many instances where two businesses are doing commerce with one another, they are connected through material as well as relational means. A damage claim can be made when one party is responsible for damage to the assets or business operations of another.

For example, if a company promises to deliver raw materials at a certain time but does not follow through on the promise, the purchaser can claim damages in the form of lost income. Due to the fact that the reseller was not able to make a sale, and perhaps even lost a client of their own, the vendor would be responsible because they did not fulfill their end of the agreement to deliver.

For example, a vendor can be responsible for reparation through damage claim when they have actually done material damage to an asset. As an example, at times a repair shop can damage other parts of a vehicle then they were asked to work on. In this case, the customer could file a damage claim against the car shop. This damage was done to a material asset rather than a vendor/client relationship.

2 Factors Damage Claims Relies On

Ultimately the success of a damage claim relies on two factors: success in negotiation or success in court. If a damage claim form is being filed with the insurance company of a vendor, the damaged party must persuade the insurer that their case is valid. Whereas if the damage claim is being filed with the actual damaging party, the damaging party must be persuaded that the damage is valid. If this does not occur, a lawyer should be contacted and court proceedings must occur. In this way, damage claims are either a negotiating process or a lawsuit. If an actual lawsuit for damages occurs, the judge and jury must be persuaded that the case is valid and damage has occurred.

Conversely, a damage claim release exists. This form is a contract which releases one party from the damages of another. These agreements occur in business, where one or both parties want to mitigate their risk by removing any occurrence of 3rd party damage.

Damage Claim Example

Jalpa is the owner of a business. Her company, a commercial agents commercial agents firm, sells products for some of the largest manufacturers of industrial supplies in the world. Jalpa has a business which grows off of the manpower and sales skills that it can retain. It uses tools to facilitate this work.

Recently, there has been an issue with one of the tools. As she sent one of the company cars in for work, it was damaged in the auto shop. The damage appears to be very substantial and may render the vehicle out of use. Jalpa blames the shop for the damage.

The shop does not want to be held responsible for the financial responsibility associated. It will not pay Jalpa for the work needed to replace the car. Jalpa knows the shop is responsible, but has few other options. She must hire a lawyer and take suit against the shop. There is no other option.

Jalpa talks to her lawyer. The process will start by sending a formal damage claim letter to the repair shop. She did not want things to come to this, but sees no other choice. She regrets the way things have gone on but has to move forward with her life. Though Jalpa is a nice lady, she sometimes has to take a stand. As she leaves for home that day, she resolves to set this all behind her.

Damage Claim

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2/10 net 30

See Also:
2/10 Net 30 Example
Credit Sales
Letter of Credit
Line of Credit (Bank Line)
Net 30 Credit Terms
5 C’s of Credit (5 C’s of Banking)

2/10 net 30 Definition

2/10 net 30, defined as the trade credit in which clients can opt to either receive a 2 percent discount for payment to a vendor within 10 days or pay the full amount (net) of their accounts payable in 30 days, is extremely common in business to business sales. Anywhere a vendor offers credit terms it is likely that they also offer some discount to motivate early payment.

2/10 net 30 impacts your cash flow. Learn 25 other ways to improve your cash flow! Download the free 25 Ways to Improve Cash Flow whitepaper. 

2/10 net 30 Meaning

2/10 net 30 means a discount for payment within 10 days. The purpose of this is to shorten accounts receivable cycles for those who provide credit terms. This is essential when vendors have accounts receivable turnover cycles which exist longer than preferred. A business that offers a 2/10 net 30 discount is expressing that it is more important to have cash as quickly as possible than it is to have the full amount of their payable. The fact that lack of cash is one of the main reasons businesses fail makes these terms commonplace. Businesses love to offer 2/10 net 30 for 2 reasons: it makes customers happy while speeding up cash cycles.

Variations on this method include 2/10 net 40, 2/10 net 45, 2/10 net 60, 2/10 n 30 EOM (end of month), and more. These terms may also be referred to in a variety of terms: 2/10 n 45, 2/10 n 60, 2/10 days net 30, 2 percent 10 net 30 days.

The 2/10 net 30 discount makes no statement on the payment of bills beyond 30 days. Vendors may or may not have a late payment penalty for such customers. It is up to the discretion of the purchaser to decide the best method of closing accounts payable when 2/10 n 30 is available.

2/10 n 30 journal entries vary depending on the accounting method used. LIFO vs FIFO, accounting vs economic income, and many other matters make 2/10 n 30 accounting somewhat complicated. Strong company policies must be in place to ensure smooth bookkeeping.

(NOTE: Want the 25 Ways To Improve Cash Flow? It gives you tips that you can take to manage and improve your company’s cash flow in 24 hours!. Get it here!)

2/10 net 30 Formula

There is no single 2/10 net 30 formula. Despite this, 2/10 net 30 interest rate equations can often fall into this model:

If paid within 10 days:
Invoice Amount X 98% = 2/10 net 30 effective interest rate

If paid within 30 days:
Pay the invoice in full

2/10 net 30 Calculation

2/10 net 30 calculations are quite simple once understood fully.

The invoice amount is $10,000 and 2/10 net 30 accounting is in place.

If paid within 10 days, then:
$10,000 X 98% = $9,800 due with in 10 days

If paid within 30 days, then:
$10,000 is due

By using the 2/10 net 30 principle, you can greatly improve your cash flow capabilities. Download the 25 Ways To Improve Cash Flow to find other ways to improve your cash flow within 24 hours.

2/10 net 30

Strategic CFO Lab Member Extra

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2/10 net 30

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Don’t Let Your Business Lose Money for Too Long!

Over the holidays we were asked by an investor to examine a company and determine if it could survive. We reviewed the financial records and met with management. At the end of our review both we and management agreed that we were about a year too late in saving the company! What difference does a year make?

The Difference of a Year

What was different one year ago? The company had a profitable business surrounded by money losing products and high overhead. Action could have been taken to shed the unprofitable business, reduce expenses and grow the profitable sales. Unfortunately, time had run out!

Don’t Let Your Business Lose Money for Too Long!

One year ago the company had positive working capital and a good relationship with their vendors. Over the past year, they consumed their cash and disappointed their vendors to the point that no one was willing to work with them. The best analogy would be to imagine you are flying an airplane and the engine stops. As the plane plummets toward the earth you don’t wait until 1000 feet over the ground to bring it out of a dive! Same thing with a company!

If you find your company in a dive and losing money you should remember two rules:

Rule #1: Don’t Lose Money!
Rule #2: See Rule #1!

It is imperative to take corrective action early in the crisis. Most entrepreneurs do not want to take one step backward. Unfortunately, it is sometimes necessary in order to survive a recession.

Don’t let your business lose money for too long! If you are seeking more ways to make a big impact in your company, download the free 25 Ways To Improve Cash Flow whitepaper to find other ways to improve your cash flow within 24 hours.

Don't Let Your Business Lose Money for Too Long!

Strategic CFO Lab Member Extra

Access your Cash Flow Tuneup Execution Plan in SCFO Lab. This tool enables you to quantify the cash unlocked in your company.

Click here to access your Execution Plan. Not a Lab Member?

Click here to learn more about SCFO Labs

Don't Let Your Business Lose Money for Too Long!

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