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MGT602 - Entrepreneurship - Lecture Handout 38

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DECISIONS (Continued….)


It is necessary to have good records for effective control and for tax purposes. The entrepreneur should be comfortable and able to understand what is going on in the business. With software packages, much of the record keeping can be maintained on a personal computer. The goals of a good record keeping system are to identify key incoming and outgoing revenues that can be effectively controlled.

Sales (Incoming Revenue)

It is useful to have knowledge about sales by customer both in terms of units and dollars. The entrepreneur of a retail store might try to identify the profile of the type of customer that patronizes the store. Retailers also like to have information on specific customers. Credit card purchases can be tracked for information on the type and amount of merchandise purchased. An Internet venture can maintain purchase history data on the types of produces purchased.
Customers’ e-mail addresses can be requested so the customer can be notified of sales. Some Internet firms have established a free membership as a means of following up. In a service venture, records would need to be maintained on when a customer paid their monthly fee. As cash flow problems are the most significant cause of new venture failure, good payment records are necessary. Record keeping of payments can either be handled by a computer software package or a simple card file system. If payments are late beyond a reasonable time, it may be necessary to hire a collection agency, but only as a last resort.

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MGT503-Princilpes of Management-Lecture Handout No 26

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The strategic management process is an eight-step process that encompasses strategic planning, implementation, and evaluation.

  • The first step is identifying the organization’s current mission, objectives, and strategies.
    1. Every organization needs a mission, which defines the purpose of the organization. What is the organization’s reason for being in business?
    2. It’s also important to identify the organization’s current objectives and strategies, as well.
  • Read more: MGT503-Princilpes of Management-Lecture Handout No 26

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