RETAIL FINANCIAL MANAGEMENT(Part 4)

4. Analysis and Control of Capital Stock

The development of the economy in a country requires the presence of a large capital. Not just the human resource capital and nature, but also the capital of the Fund which is not a little. The Government will try to raise funds from the public, both domestic and community of communities abroad. One way gather funds that can be done is to encourage investment. The Government will try to attract people’s interest for investing with profitable results. The economy of a country is often judged based on investment activity happens. When high levels of investment, the prospects of the country’s economy will be increasingly good.

The investment is considered the most advantage is quick investment through the capital markets. Therefore, the stock market will perform economic and financial. Can be joined an alternative capital market funds from the public in addition to the banking system. Financial instruments in the capital market which is most widely used to attract funds from the society’s common shares (common stock). In General, investors opted to common stock investment, because the expectation will earn a return, in the form of capital gains/capital loss and dividend. Capital gain/loss is the difference between the sale price and the purchase price of the stock, while the dividend was the rest of the company’s profit distributed to shareholders. Every investor has a different preference for a satisfactory return. The uncertainty of the return to be gained is the risk faced by investors. Therefore, investors will be wary of deciding what investments will be chosen.

At the time of going to invest in a stock, investors will try to assess the company to estimate the expected return can be acquired. The stock price of a company on the stock market often became a reference point to indicate the value of the company. Fundamental analysis of companies, becomes one of the ways to assess the performance and prospects of the company. The dividend is one of the fundamental factors expected to affect stock prices. Indicating that the content of the information in the announcement of dividends can have an effect on abnormal return a share, which means it affects stock prices. Dividend increase of information could be interpreted as a sign of optimism with regard to corporate profits, and dividend declines can be interpreted otherwise any decline in profits in the future (the goddess, 2003). For investors who expect a return from dividends, will certainly pay attention to the information relating to the payment of the dividend that the company will do.

If a company makes a profit, does not mean the company would distribute dividends. States that new investors can receive dividends if two conditions are met, the company makes a profit and the general meeting of shareholders (GMS) which authorities have decided upon the profit dividend distribution.

Dividend payments are also subject to the discretion of the Board of Directors of the company. There are rules that limit the dividend payment. Before payment of dividends to ordinary shareholders do, all claims or liabilities to the Government, creditors and holders of preferred stock must be met first. The management company will consider various things to determine policy of dividend. Policy as to whether the company will make the payment of dividends or not, or how the amount of dividends that will be paid can affect judgments of investors about the condition of the company. On the other hand, ordinary shareholders who were investor is very little outside parties to obtain information about the condition of the company. If investors can figure out what things into consideration management companies in taking decisions regarding the dividend cash payment, then investors can predict cash dividends which will be taken as a return on investment that he did.

Many studies have proved that capital markets are reacting to all of the information related to the company. The information is considered to provide good news can raise prices and otherwise the information is considered bad news would lower the price. For investors who want a return of the dividend, it will analyze the variables that can potentially affect the company’s decision in making the payment of dividends. Research on this subject has also been much done to help investors and management to decide on dividend policy is best for the parties concerned. Baker and Powell (2000) conducted a survey of firms-companies listed on the NYSE in 1997, to know the views of managers the company regarding any factors that determine dividend policy. Their research results that the factors that most affect dividend policy is the level of profit and dividend continuity past. A survey had also been conducted at the Jakarta Stock Exchange which aims to assess the views of the Chief Executive Officer of the dividend policy and capital structure policy. Results of the survey show that for executives, variables that affect the dividend policy is variable profits and investment opportunities. In addition, the cash ratio, cash flow, and stock prices also be variables that affect the dividends.

A lot of research on dividend policy has been done, but the results of the research there is nothing consistent. From these problems, researchers are interested in testing the reload of the factors that affect the cash dividend payment. This research is the replication of research that has been done by Kania and Bacon (2005), which conducted a study to examine the factors that motivate the dividend policy of the company.

This research with the research equation Kania and Bacon (2005) is a dependent variable which is used, i.e. using a Dividend Payout Ratio (DPR), but a sample of the company and the independent variables are used differently. Kania and Bacon (2005) observed a few variables, i.e., Return On Equity (ROE), sales growth, liquidity (current ratio), the ratio of debt (Debt to Total Assets), Insider Ownership, Institutional Ownership, Beta, use of capital, and earning per share growth, whereas the current study only focused on financial variables are internal, i.e. ROE, earning growth variables per-share, liquidity and debt ratios. Liquidity is measured by the size of the cash ratio because it sharper than current ratio, whereas the ratio of debt as measured by the Debt to Equity Ratio. This research adds a variable dividend the previous period due partly to have an impact on the current dividend payout policy, based on the existence of some research on it.

RETAIL FINANCIAL MANAGEMENT(Part 3)

3. analysis and cost control

Economy development at the moment is developing along with the development in other fields. The economic development has the meaning of processing potential economic power into real economic strength through capital investment, technology and development capability through the addition of Association and management.

Thus the cooperation from all walks of life are expected to be able to cultivate potential economic power is available. In a larger sense the company is an organization consisting of parts which are interconnected and work together for some purpose or goal. The company is one of economic actors as a aims obtain a reasonable profit, needs to have a program in carrying out activities. For companies that pursue profits and trying to maintain the viability of the company will certainly face many problems that will arise in connection with the activities of the company. One example of the problems faced is how to carry out the control of costs occurring in the company.

Thoroughly control the company because only thus what might be accomplished by a company can be known. In the corporate world, which became the company’s measure of success is the ability of the company in generating profits. The greater the profits generated by the company, then it can be known that the company was managed well in running the business. Enlarge the amount of profit can be done through the decision with a variety of ways such as increasing the amount of the sales turnover, minimize costs or raise a reasonable selling price. The company must carry out a control of costs in order to support the implementation of the operational activities of the company.

Cost control generally include three management functions include:

1. the functions of the planning through goal setting and the preparation of the plan.
2. the function of organizing at operational level
3. function of controlling through evaluation of the goals have been achieved.

Any company that wants to keep it running must be able to sustain its existence is claimed to be able to work optimally, efficiently and effectively. For that it needs the level of ability to control the company management especially in improving quality. If the company’s operating mechanism is relatively simple, then still control systems carried out by direct supervision system, but if the company already operates with a large scale and involving several parts, then management is no longer able to hold a direct control effectively. In this case the system needs to be equipped with a control system for controlling authority and accountability systems with the use of a written report. The budget is one of the company’s financial planning tool and is used as the basis for system control (supervision) finance companies. With the financial plan against the leadership of the company can more easily do coordination in doing coordination in carrying out its work.

In the process of implementation of the activities of the company we can analyze whether the budget can be implemented have been compiled according to plan defined previously, or there is a variance in the performance variances that occur can be seen at the end of the month or the end of the year by way of compare between budget and its realization. The variance is always absolutely occur at every budget we need to value the company whether the variance that can be considered as a reasonable, It means that the absolute and reasonable variance cannot be avoided or variance was considered a reasonable, caused by the lack of control and the occurrence of waste. The company is not detached from the operational costs of budget planning, starting from the stage of the preparation required before drafting a plan for preparing the budget itself. Implementation of the plan until the end of phase controlling and evaluation of the results of such a plan.

Dividend payments are also subject to the discretion of the Board of Directors of the company. There are rules that limit the dividend payment. Before payment of dividends to ordinary shareholders do, all claims or liabilities to the Government, creditors and holders of preferred stock must be met first. The management company will consider various things to determine policy dividend. Policy as to whether the company will make the payment of dividends or not, or how the amount of dividends that will be paid can affect judgments of investors about the condition of the company. On the other hand, ordinary shareholders who were investor is very little outside parties to obtain information about the condition of the company. If investors can figure out what things into consideration management companies in taking decisions regarding the dividend payment, then investors can predict cash dividends which will be taken as a return on investment that he did.

Many studies have proved that capital markets are reacting to all of the information related to the company. The information is considered to provide good news can raise prices and otherwise the information is considered bad news would lower the price. For investors who want a return of the dividend, it will analyze the variables that can potentially affect the company’s decision in making the payment of dividends. Research on this subject has also been much done to help investors and management to decide on dividend policy is best for the parties concerned. Baker and Powell (2000) conducted a survey of firms-companies listed on the NYSE in 1997, to know the views of managers the company regarding any factors that determine dividend policy. Their research results that the factors that most affect dividend policy is the level of profit and dividend continuity past. A survey had also been conducted at the Jakarta Stock Exchange which aims to assess the views of the Chief Executive Officer of the dividend policy and capital structure policy. Results of the survey show that for executives, variables that affect the dividend policy is variable profits and investment opportunities. In addition, the cash ratio, cashflow, and stock prices also be variables that affect the dividends (Pefindo: 1997 in 925silverbali: 2001).

Sutrisno (2001) have been researching about the factors that affect the dividend payout ratio at publicly traded companies. The research results show that not all factors examined had significant influence. Of the 6 variables examined, only the variable position of cash and debt ratios are significant, whereas variables affect potential growth, company size, ownership and profitability is not significant enough. Other studies conducted by Erawati and Sisdyani (2005), which examines the 5 variables, and the results suggested that the cash dividend a year earlier the company earned profit and influence significantly to cash dividend payments, but debt and liquidity is precisely the effect was not significant. This is according to research conducted a Goddess (2003) also stated that earnings and dividends last year significant effect.

A lot of research on dividend policy has done, but the results of the research there is nothing consistent. From these problems, researchers are interested in testing the reload of the factors that affect the cash dividend payment. This research is the replication of research that has been done by Kania and Bacon (2005), which conducted a study to examine the factors that motivate the dividend policy of the company.

This research with the research equation Kania and Bacon (2005) is a dependent variable which is used, i.e. using a Dividend Payout Ratio (DPR), but a sample of the company and the independent variables are used differently. Kania and Bacon (2005) observed a few variables, i.e., Return On Equity (ROE), sales growth, liquidity (current ratio), the ratio of debt (Debt to Total Asset) t, Insider Ownership, Institutional Ownership, Beta, use of capital, and earning per share growth, whereas the current study only focused on financial variables are internal, i.e. ROE, earning growth variables per-share, liquidity and debt ratios. Liquidity is measured by the size of the cash ratio because it sharper than current ratio, whereas the ratio of debt as measured by the Debt to Equity Ratio. This research adds a variable dividend the previous period due partly to have an impact on the current dividend payout policy, based on the existence of some research on it.

RETAIL FINANCIAL MANAGEMENT(Part 2)

3. Analysis and Cost Control

Indonesia’s economy development at the moment is developing along with the development in other fields. The economic development has the meaning to take care potential economic power into real economic strength through capital investment, technology and development capability through the addition of Association and management. Thus the cooperation from all walks of life are expected to be able to cultivate potential economic power is available. In a larger sense the company is an organization consisting of parts which are interconnected and work together for some purpose or goal. The company is one of economic actors as a aims obtain a reasonable profit, needs to have a program in carrying out activities. For companies that pursue profits and trying to maintain the viability of the company will certainly face many problems that will arise in connection with the activities of the company. One example of the problems faced is how to carry out the control of costs occurring in the company. Thoroughly control the company because only thus what might be accomplished by a company can be known. In the corporate world, which became the company’s measure of success is the ability of the company in generating profits. The greater the profits generated by the company, then it can be known that the company was managed well in running the business. Enlarge the amount of profit can be done through the decision with a variety of ways such as increasing the amount of the sales turnover, minimize costs or raise a reasonable selling price. The company must carry out a control of costs in order to support the implementation of the operational activities of the company.

Cost control generally include three management functions include:

1. the functions of the planning through goal setting and the preparation of the plan.
2. the function of organizing at operational level
3. function of controlling through evaluation of the goals have been achieved.

Any company that wants to keep it running must be able to sustain its existence is claimed to be able to work optimally, efficiently and effectively. For that it needs the level of ability to control the company management especially in improving quality. If the company’s operating mechanism is relatively simple, then still control systems carried out by direct supervision system, but if the company already operates with a large scale and involving several parts, then management is no longer able to hold a direct controlling effectively. In this case the system needs to be equipped with a control system for controlling authority and accountability systems with the use of a written report. The budget is one of the company’s financial planning tool and is used as the basis for system control (supervision) finance companies.

With the financial plan of the arranging against the leadership of the company can more easily do coordination in doing coordination in carrying out its work. In the process of implementation of the activities of the company we can analyze whether the budget can be implemented have been compiled according to plan defined previously, or there is a variance in the performance variances that occur can be seen at the end of the month or the end of the year by way of compare between budget and its realization.

The variance is always absolutely occur at every budget we need to value the company whether the variance that can be considered as a reasonable, It means that the absolute and reasonable variance cannot be avoided or variance was considered a reasonable, caused by the lack of controlling and the occurrence of waste. The company is not detached from the operational costs of budget planning, starting from the stage of the preparation required before drafting a plan for preparing the budget itself. Implementation of the plan until the end of phase control and evaluation of the results of such a plan.

RETAIL FINANCIAL MANAGEMENT (Part 1)

1. financial planning and controlling
Financial planning and controlling involving projection-projection based on standards and the development of feedback and the process of adjustment to correct the work achievement.

Financial planning includes sales, profits and assets based on the production and marketing of strategic alternatives for how to determine the needs of their funding then.

Financial planning is the process of:

Analyze the funding and investment options open to the company.
Projecting the future consequences of current decisions, in order to avoid things that are unpredictable and the relationship between the current decision and future.
Determine which alternative will be selected
Next measure the results against objectives in the financial plan.

2. retail trade control systems
Internal control systems need to be applied to a wide variety of business ventures, including efforts on retail business (retail). The retail business is developing modern retail business is in the form of self-service. The application of internal control needs to be done on the entire self-service operations, including most major systems sales cash and cash receipt. Internal control system aimed at securing the company property. This research aims to clarify the system of cash sales and cash receipts at Self-service, and explains the application of the internal control system of cash sales and cash receipts at self-service is concerned. This research is descriptive research is the research done by conducting in-depth analysis of cash sales and cash receipts, as well as elements of internal control, namely the organizational structure, the system of authority and procedure of recording, and healthy practices. Results of the research on the system of sales and cash receipts at Self-service stated that cash sales system conducted by the cashier. While the cash receipt system conducted by the cashier, cashier, financial section supervisor, and manager of operations. Internal control system on cash sales is the use of barcodes in any transaction the payment from the buyer. Internal control system on cash receipts require the separation of the functions of the parts check the receipt of cash (the cash supervisor) and the part which did the recording of cash receipts and deposits money into the bank, i.e. the financial section. Based on the research results, it is advisable to implement a computerized system is thoroughly against the activity of transaction in Self-service considering Self-service growing. Repair divisions also needs to be done to anticipate the aberration. In addition to do credit card facilities to increase payment transactions more efficiently.

Steps to Start A Retail Business

Start A Retail Business

Start a business for most people is not an easy thing. Classic stuff, a lot of consideration there here so often make people help starting a business. Starting a business is not necessarily being one of the sources of fear for everyone. To remove the fear in starting a business, someone could make preparation a mature business so that it can get through it with optimism.

One seminar on Gerald Abraham one of the business adviser at a law firm, also the owner and Director of a financial consultant in 2006, contains about being successful with understand important aspects of 9 before starting the venture.

Understand the concept of a product or service is good
Before starting a business then the most important thing is our understanding of the concept of a product or service that will be the core business. We need to understand not only technically but also production and market prospect of starting from the smallest to the environment is the largest environment. In this topic discussed thoroughly the important aspects in conducting the analysis of the feasibility and prospect of products including products with a completely new look side of human behavior, market needs and more.

Create a business vision and mission
Any person who wishes to start a business should know the vision and mission that will be the guide a person to stay focused to the business goals and the organization early. Often an attempt at the time began to develop at a later stage because of the failure of such organizations did not focus on the improvement of business early progress but too much trying to develop other new businesses.

The necessity of winning, positive and learning attitude to be successful
Mental attitude is the key to the success of your efforts other than understanding your business. there is no over night success something to be identified than any candidate “entrepreneur” because it takes time, the attitude of not giving up, the learning process is continue, and see the problem positively that doesn’t make you be daunted but look at every opportunity and learning for any failure.You will learn to develop the above attitudes to become “entrepreneurial business” success.

Make planning and effective business strategy would avoid the effort than business and financial risks.
Statistically almost all small and medium business failures due to the absence or lack of effective business planning that you create. Assumptions such as the production capacity utilization rate, production, price increases and cost projections and other aspects of business planning is to be described accurately the realities of the market or existing practices in an industry. Systematic calculation and projection of income and expense should be made appropriately so as to help any prospective employers to calculate accurately the need for capital investment and working capital including the fee structure for the preparation of initial, experimental stage, commercial production, inventory, distribution, marketing, administration, human resources and also the revenue component which consists of core and additional income. A good understanding of it will also help would-be entrepreneur can identify potential risks to the business, management and finance and make the control measures to be able to avoid any such risk.

Basic knowledge in management, organization and systems will avoid the effort than risk management.

Every effort from the smallest need good management to ensure the process of marketing, production, distribution and sale takes place properly. Poor management system will result in the unnecessary costs such as raw material is wasted, a worker is not productive because of ineffective supervision and a job description that is unclear, coordination and communication between employees who are not effective so many decisions that are overdue, ineffective recruitment so many incoming and outgoing employees who waste a lot of time and costs the training is not good, so the low employee productivity and organizational problems. In this topic we will give you the basic knowledge and a very important aspect that should be studied by aspiring business entrepreneur in order to avoid the risk management which can lead to failure of the effort.

Optimization of human resources then 50% of your efforts have been successful.
Human resources or HR is one of the keys to the success of the effort is very important. Many experts are aware that to start a business often when we recruit the right employees and potentially good can close the weaknesses of management, organizations and systems in the short term. With the proper RESOURCES then we are already half way to being a success. This topic will help us to understand the criteria of a good employee and in accordance with the needs of human resource management in General, including employee performance appraisal system so that each employee will feel satisfied and also how to motivate employees in general psychology and with the system an incentive to optimize the performance of employees.

Why is creativity, leadership and decision making process is very important?
In starting businesses generally any would-be entrepreneur is going to experience a lot of problems and crises. Many failures occurred because of a lack of creativity, leadership and making the right decisions to seek a good solution. Creativity as “thinking outbox” or ability to do analysis problems beyond the existing understanding and finding creative solutions alternatives will greatly help your business to succeed. Creativity will also be helpful for you to customize your products in order to be accepted by the market and also see various opportunities in building your business. Leadership is very important dalamkrisis to make every employee and every person engaged in the business of you believe that you don’t panic, be a last resort solution for all problems and become a role model. Decision making process will assist you in finding alternative solutions and choose the best for your business and your organization. In this topic you will find ways to develop your business creativity, leadership traits that match your personal background and how the correct process in making a decision in every issue.

Basic knowledge of financial management and financing
Understanding of this aspect is very important in the development of your business. Production is often interrupted due to bad financial management such as the shortage of funds for the purchase of materials, means of production, and others. This will be discussed Dalamtopik the basic knowledge of cash flow or the cash flow like blood in the human body, funding costs, working capital and investment financing, the capital structure, the company’s assets, investment capital and others.

Marketing, service and product brand
Marketing is the spearhead of the success of the sale of products or services. As good as any product or service without good marketing it will be very difficult to increase sales and profit. On the other hand without good service to the customers it will be very difficult to an attempt to gain a loyal customer who is the key to the development effort. With a loyal customer and marketing jobs will be easier because of the good service will create a good brand product to potential new customers. In this topic will be discussed thoroughly secera all aspects important in making marketing strategies, identification of required customer service and how to create product brand and its effect to the success of the effort.