Numbers and Management: Without numbers, a business can’t grow beyond a certain point. Here’s a simple example: imagine you go to the bank to get a loan because you don’t have enough cash for your operations. To qualify for a business loan , you need financial statements like balance sheets . Banks don’t lend based on looks or abilities but decide if your current financial situation is promising for the future. It’s hard to get a loan if you don’t tell a story with numbers. If you rely solely on bank deposits , you’ll spend what you have or borrow if you run out. That keeps your business running as it is, but without verifying your creditworthiness with numbers, don’t even consider borrowing from the bank. Good debt can create leverage, but bad debt can wipe out even your past gains. - Joseph’s “just my thoughts”
The ‘halo effect’ refers to the error of evaluating a person based solely on one strength. This mistake arises from our human tendency to see only what we want to see and to know only what we wish to know. People often regret choosing a smart but uncommitted individual once they realize they were attracted to that person’s intelligence after bringing them onto the team, ultimately leading to the wrong choice. This is an easy mistake to make, especially when the chosen person’s ability is particularly remarkable. When erroneous human resource decisions occur, businesses can fail.
- Joseph’s “just my thoughts”
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