In this ever-changing business landscape, if you want to be independent in terms of employment, because it enables you to gain more freedom and set the path you will like to go through, then you are heading in the right direction.
And if you are pursuing to be an independent advisor to hammer out your own stake in this diverse market, then we encourage you to comprehend the following terms that will pay off your efforts in becoming your own boss.
1. Budget
Surely you hear this word most frequently in your daily routine but knowing and understanding are two different things. You know a budget is an assessment of income and outlays for a definite upcoming period and is often accumulated and rethought on an intermittent basis. What you must understand is that a budget will allow you, and your clients, to have a financial plan for a period and can also aid you in setting goals and planning for eventualities.
2. Dashboard
A dashboard is a graphic demonstration of all your information. The main purpose of a dashboard is to provide you with information straight away and allows you to obtain information from an associated database. It is customizable and enables you to supervise your conduct, generate reports, set marks for upcoming work, and support you to make well-versed decisions.
3. Deliverables
Deliverables are the measured services that you need to provide to your customers at several stages of a task as well as at the accomplishment of the project. Deliverables will help you to keep assignments on track and allow effective division of time and revenue. They also allow you to have better control of the advances you´re achieving and the expectations of your client.
4. Fast-Tracking
Fast-tracking is a method where actions that can be executed in sequence utilizing the original timetable are performed simultaneously. You can use this method when you desire to shorten a timetable because fast-tracking can be done free of cost.
5. Project Life Cycle
Do you wonder what is a project life cycle? The answer is quite simple, the project life cycle consists of five necessary steps including starting, forecasting, implementing, monitoring, and concluding for you to effectively accomplish a project from beginning to end.
6. Stakeholders
A stakeholder invests in a corporation and can affect or be affected by the operations conducted by the corporation. Usually, stakeholders are investors, personnel, clients, suppliers, or trade links. Stakeholders are internal and external to any company.
7. Business Cycle
A business cycle is a sequence of phases that occurs when the economy inflates and contracts and is mainly measured by the ripple of gross domestic product. Comprehending the diverse phases of a business cycle will help you make informed decisions.
8. Key Performance Indicators
As the name implies, a KPI is a quantifiable value that indicates how well you are performing to achieve your key objectives. You can use KPIs to assess your success in accomplishing your goals.
9. Knowledge Process Outsourcing
Knowledge process outsourcing is the delegating of main knowledge-based actions. You can outsource various activities to individuals who have expertise in a particular area. KPO can enable you to acquire skilled personnel at a lower cost.
10. Opportunity Cost
Opportunity costs signify the possible benefits that you may forego while picking one project over another. Understanding the lost potential opportunities when you select one venture over another will lead you to improved decision-making.
11. Cost of Capital
The cost of capital is an estimate of the least return that would be required to explain undertaking a capital planning development. The cost of capital will allow you to evaluate whether a planned decision can be right by its cost or not.
12. Currency
Currency is a monetary system for products and services. It is money allotted by the governments and normally accepted at its nominal value as a source of payment. To succeed you must know that the value of any currency varies continuously according to other currencies.
13. Sustainability
In the widest mindset, sustainability is the capability to preserve or back a development constantly. Having sustainability in your practice will help you to avoid the exhaustion of resources so that they can last for a long time.
14. Corporate Governance
Corporate governance is the collection of rules, practices, and procedures utilized to administer and govern a corporation. Know that the key principles of corporate governance are responsibility, clarity, impartiality, and integrity.
15. Value Chain
The concept of the value chain is to define the complete chain of actions that take place to produce a product or service, from the beginning to the end. Understanding this stepwise model will help you convert your ideas into reality.
16. Chairman
A chairman is the head of a corporation and has the highest position. The Chairman has a pivotal role and is accountable for accompanying the Board and directing it on deliberate matters, supervising the business decisions, and establishing high authority values.
17. Cash Flow
The term cash flow means the clear sum of cash and cash alternatives that is moved in and out of a corporation. Whenever the corporation receives cash, it signifies cash inflows and when it invests in projects or ventures it refers to cash outflow. For your better understanding, we will put it in simpler terms as the movement of money in and out of the business.
18. Cash Flow Statement
It is a financial statement that reviews the motion of cash in and out of the company. This statement will help you understand how well a corporation positions cash in and out such as generating cash to fulfill debts and fund the operational expenditures. The cash flow statement balances the balance sheet as well as the revenue statement.
19. Forecasting
Forecasting is a practice that makes use of past information as inputs to help you make well-versed decisions that are predictive in defining the course of upcoming trends. Implementing a forecasting technique will help you allocate a budget or plan for estimated expenditures for an approaching period.
20. Enterprise Value
The total worth of a corporation is determined by the enterprise value which is used as a more inclusive stand-in to equity market capitalization. It includes temporary and longstanding debt along with any cash on the balance sheet of a company. Enterprise value is a widespread benchmark that you can use to value a business for a possible coup.