The Need For Intelligence In Business

Ever thought of the special talents that allow people to build a flourishing business from nothing, while others – though given every advantage of background and preparation at the best schools – run a business into the ground? What abilities allow one person to take a mediocre company and transform it into an industry leader, while others turn great companies into mediocre ones? And what collective qualities let one company flourish year after year while competitors flounder?

The answer must lie not just in luck, breeding, or education. Rather there seems to be a certain knack- preternatural intelligence at play. One that makes some people naturally talented at the complex demands of business, just as other naturals at the engineering, soccer, music etc.. This same ability displays itself at the group level in the superlative terms, and at the organizational level in great companies.

This observation leads to the question “Could these be a business intelligence- set of abilities that distinguish those truly outstanding in the world of commerce? Could business intelligence be the mark of outstanding individual performers, as well as the building block of the best-performing companies? The question of whether these might be a business intelligence is not far-fetched. Serious thinkers in the early 20th-century mold a narrow set of intellectual abilities revolving mainly around verbal agility and alacrity at math. Instead, they think of intelligence as specific to various life domains.

Most people have transformed the way we think about intelligence by challenging its definition in terms of restricted range of abilities that allow some to excel in the academic world or do well in IQ tests. Instead, they argue convincingly, there are multiple intelligences that go far beyond that narrow band, including in the world of movement- as in the soccer star or gifted dancer- in the universe of music.

This expands the term “intelligence” to encompass a range of consequential capacities usually thought of as far beyond its scope. Most people have proposed “intelligence” for understanding the world of nature, the pros and cons of spiritual intelligence etc.. Why not then, a business intelligence? Intelligence in its basic sense refers to the capacity to solve problems, meet challenges, or create valued products. In this regard, business intelligence describes the essential capacity for success in the marketplace being able to handle the challenges and crises of the day adeptly, to apply the expertise that offers solutions as needed, and to do all that in ways that add value.

Among the criteria for any candidate, intelligence is an evolutionary plausibility for its role in human survival, a role arrived at via a reverse engineering in which selection pressures in evolution are inferred from the current operation of a faculty. For instance, the case can be made the modern-day talents for business had antecedents in primitive forms of barter and craftsmanship, primal leadership and negotiation, teamwork and cooperation.

Those who excelled in the these original business abilities in prehistory would very likely be better able to provide for their progeny, the true mark of evolutionary fitness. One mark of any intelligence lies in having developmental history, a series of landmarks of learning and mastery over the course of life. No intelligence emerges full bloom, but rather is nurtured and developed over the years. When it comes to business, those who emerge as outstanding typically showed signs of a flair for their talent as far back as their teen years or even childhood. As the biographies of business greats tell us, as they grow they were particularly able learners, refining and honing these natural talents.

The emergence of the human capacity, for instance, math, speaks to a different criterion for intelligence in a relevant symbol system. Any intelligence requires a shared language of communication, a set of symbols that captures the meaningful information needed to operate in that domain- such as musical notation. Historically, such symbol systems arose because of a pressing need. The historical record suggests that the basics of math- counting, adding, subtracting, and the like- emerged to fill the needs of commerce and accounting, keeping track of goods as they were traded and stored. As business has evolved, so too have the systems that serve this intelligence, as they adapt to these dynamic changes.

What might the key elements of business intelligence include? The data trailed leads back to the 1970s, when intellectuals first made the argument that what predicted the best performance in business were not traditional academic aptitudes, nor school grades, nor credentials. Instead they focused on the abilities that star performers exhibit, which can differ from job to job, role to role, and company to company- and which have little or nothing to do with academic abilities.

Research has shown why academic intelligence matters little as prediction of success once someone has gotten into a given job- they are largely threshold abilities, what anyone needs to enter the field and hold the job. More significant for predicting success are those competencies that distinguish the best from the mediocre with a given job, role, or company. If a company wants to cultivate its strengths, it needs to hire, promote, and train people for these distinguishing abilities- just as we want to succeed in our career, these are the abilities we will need.

Over the last several decades, hundreds of studies in organizations of all kinds- from small family owned retailers to corporate giants, from hospitals to religious orders- have followed certain people’s lead, assessing the capabilities that set the star performers apart from average in jobs within their organization. Those abilities break down to into three main basic domains- cognitive astuteness, which largely translates into the ability to learn and to think strategically; technical expertise, or essential crafts we learn to get work done; and emotional intelligence, the ability to manage ourselves and our relationships. Business intelligence, in the sense I propose, subsumes all of these as core sub-abilities – components that, when orchestrated together, create a special business aptitude.

Each of us will inevitably have a profile of strengths and weaknesses across all the varied abilities that make for business intelligence. And each job we hold over the course of a career will have a distinctive set of demands – and so to some extent require a unique recipe of capabilities to excel. As we change jobs and roles, we need to grow our business intelligence through continuous learning- not just to keep up, but also to get and stay ahead.

Of course any intelligence will have its prodigies- those who exhibit the aptitude at its peak make the point. But the simple fact that some have a natural knack for business intelligence, while others have only middling abilities, should not discourage anyone. For one, the abilities that make up business intelligence can always be learned- anyone with motivation can get better. For another, no one needs mastering every element of business intelligence, we can only rely on others for much of the expertise we need.

Using Business Seller Financing

What Is Seller Financing?

When selling a small business, one of the most important things you need to consider is where to find your prospective clients, and how you can attract them to buy your business. Seller financing is one of the things you can offer to attract a wider scope of prospective buyers. There may be a lot of buyers who will be interested in your business and they have the skills to run and manage it properly, but lack of financing prevents them from buying it. You will surely sell your business faster for the price you want if you try to understand buyers’ motivation in purchasing your business, and if you are willing to accommodate the buyers’ inquiries.

What Is Business Seller Financing?

At some point in owning a business, you may admit that you just suddenly want to sell your business for X amount. You may have arrived at this estimated price by using a combination of valuation methods. These include analyzing the sale price of related businesses for sale in your location and other areas, determining the corporate assets’ value, and factoring potential growth of revenue. Whether or not the buyer agrees to your asking price also relies on a number of factors, but the most important of all is business financing. Not all aspiring entrepreneurs have enough cash on hand to buy a small business. Most of them have money for the down payment and they plan to pay for the balance via loan transactions. Credit unions and banks are the ones to turn to for business loans, but due to current condition of the economy, business and consumer credit markets have become strict and tight on providing loans. With this, aspiring business owners turn to business seller financing, where the owner of the business for sale acts as the lender.

Why Offer Business Financing?

The following are some of the reasons why you ought to consider seller-based financing when you sell a business:

The interested buyer intends to meet your asking price but is short on available cash to pay the amount in full.
The interested buyer has excellent credit and a solid knowledge of the industry. However, he is unable to get financing due to current economic conditions.
You wish to lessen your tax liability by receiving the profits of the sale in installments instead of a lump sum.
You want to retain some control over the company during the transition process to ensure its ongoing success.

Seller Financing: How Does It Work?

Being the owner of a small business for sale, you may want to check the credit status of every potential buyer of your business. The information you need to examine are net worth, credit history (commercial and personal), as well as the experience the buyer has in your industry. Surely, you want to be certain that the buyer will run the company successfully so he or she can pay you on your loan. Some business sellers ask for a higher down payment compared to banks and other credit unions because the risks are significantly higher. This process attracts buyers since you are willing to invest time and money for their success. Once you and the buyer have agreed on the sale price, interest rate, and loan period, you can offer 7 to 10 years payback duration.

There are different ways to set payments. Some have varied tax consequences on the seller so be sure to consult a tax attorney before completing the payment paperwork. A straight-line payment allows the same amount to be paid each month until the entire loan is settled. It is also quite rare to find provisions that penalize prospective buyers for paying off the loan early. Any interest paid by the seller is offset by quickly gaining the use of the entire loan amount. Another payment method is based on a performance-based schedule. With this, payments go up at times of higher than average net income, and decline when sales go down.

Understanding Management Accounts To Optimize The Sources Of Finance For Small Business

There are really no business financing course which focuses on how to understand accounting when it comes to understanding management accounts. You can of course use academic books but with the information you will get from them, the probability that what you learn from these sources to match your needs as a manager or owner of a small or medium sized business is very low. Would you agree?

So the question is how to get business financing meaning how do business loans work?

Here’s a short list of things to consider

1. Develop a solid, on-going, understanding of both your financial accounts or how to understand accounting.

Remember this, regardless of the business financing model, these elements are vital when it comes to your business financing. This is the reason why understanding management accounts are skills you need to have or if not develop quickly as your financial statements tell the story of your business and most importantly your ability to manage it.

2. Ensure you have a sound personal and business credit.

When you have tried to answer the question of how do business loans work, you will know that you need to have a strong credit file. However beware that your probability of success when applying for a business loan when you are a small and medium sized business is highly correlated with both your personal and business credit histories.

3. Prepare your case, build a strong file

As a business owner, I am sure you are now aware that not only must you ensure your business runs smoothly but also that you can handle discussions and meetings with your banker or accountant when it comes to your business financing.

To do so skilfully and with confidence, first of all, you can answer if anyone asks you how do business loans work as when you are applying for a business loan, you no longer feel paralysed and hopeless. When your understanding of management accounts is under your belt, then you are ready to build a very strong and solid credit file. You now need to focus on assembling the important pieces to make you have everything you need to make it happen. Think of the lender as a customer to better understand what they’re looking for. Then, develop a business proposal that addresses all their potential needs and concerns.

4. Sources of Finance For Small Business: do your research!

Beware when you are researching your sources of finance for small business. What lenders focus on is credit history and net worth. There are a wide variety of financing sources and you might want to take into account different criteria such things like industry, sector, and geography when looking for business financing sources.

5. Choose the Right Lender

The best formula to select the right lender for you when applying for a business loan before making any formal application is to ensure that it has the specific terms and conditions you are looking for in terms of length of the loan, fixed or flexible are and that this lender has a good lending track record.

6. Do NOT rush into the loan application

Like for any important and big decisions, applying for a business loan follows the same principle. DO NOT rush into it, in other words do not jump on the first offer. I understand you might be under incredible time and money pressure but DO take your time before you commit yourself. The time you invest in comparing the different options you have will ultimately save you considerable time and money in the long term and also avoid many headaches.

7. Do NOT Procastinate

Well, it is true that I just said not to rush when it comes to choose the right sources of finance for small business. However that did not mean not to do ANYTHING either. This is a huge difference to make. You want to get things done and even if you have to go through a painful process, this is a must do process to overcome so that you can get what you want: get finances for your business


No matter what your business financing needs are, do not wait. Start investing your time becoming a master at your business financials, develop your skills and knowledge with how to understand accounting so that you will know how do business loans work. You will therefore have the right tools in order to get the financing you need with certainty and a high success. Think how exciting and what a relief it will be the day the money will be wired into your account and you can take your business to the next level.