Nature of leadership

Nature of leadership

Nature of leadership, what makes a leader to excel?

Human relationships have always consisted in a complex state of power, hierarchy and domination but nowadays one of the most important and effective ways to achieve links between human beings are through leadership.

When it comes about leadership, we talk about those personas in charge of playing the part of a leader, whether it is temporarily or permanently.

In an interview with Salomon Juan Marcos Villarreal, president of an important company in Mexico named Grupo Denim, he gave us his opinions in regards to this topic:

Interviewer: Do you think a leader can apply what he knows on some other parts apart from work?

Salomon Juan Marcos Villarreal: Of course, leadership is not necessarily linked to a job only, a good leader will always excel within a family, friends or educational circles.

I: How would you define a good leader?

SJMV: We use to picture a leader as an authority figure, but I see it more like that person who can apply his authority in a natural way, capable of gathering his working team and working all together to achieve a common goal.

It is always important that a leader is recognized as so by all members in a company, he must be able to show a coherent and clear leadership, it will be with his experience and knowledge that he will know how to work with his coworkers and not by fear, threats or panic as some tend to think, as that might bring that leader respect, but it won’t be voluntary and will vanish easily.

It is important to always keep in mind that a compromised leader will always act in benefit of the company and not for his own interests.

“Every company needs good leaders to succeed, as it helps better for a group of persons to work as a team by a figure that is able to handle leadership in a good way, that will bring better results than if each person would work independently”, added Salomon Juan Marcos Villarreal.

Types of frauds

Types of frauds

Types of frauds that might get your business in real trouble

Nearly half of small businesses have or will at least once experience any type of frauds, which ca drive them at the closure of it, accounting frauds are very serious and can get you in real trouble, especially if we consider that they are usually done by employees of the businesses. For this reason, we will present you some type of frauds so you can pay attention to them and avoid them.

“Frauds are potential end of a lifecycle of a company, so the success of your business will depend on taking the necessary cautions in order to avoid them”, commented Salomon Juan Marcos Villarreal, president of Grupo Denim.

Now we will show you different types of frauds that can potentially destroy your businesses:

  • Payroll – Surprisingly a payroll fraud is pretty common, it happens when the person in charge of paying salaries register massive extra hours that are of course not paid to anyone as they gather that money for themselves, one might think this would never happen to your company but it would amaze you to see how common it is to be a victim of this fraud.
  • Over-ordering – These frauds happen when a person employed to request supplies start over-ordering and returns whatever is not needing exchanging it for things he or she could use for themselves, this is a way of stealing to a company, and it usually happens to the employees that have been at a job for ages; therefore, their work is hardly checked.
  • Friendship – A common mistake is to hire friends, this is a sad but true situation, as you will be surprised to know how commonly people very well-known commits frauds to their employers. Your company should never be left in hands on anyone else, even a best friend, family or a person you feel sympathy for.

“Frauds have turned into the end of many companies, so you should pay attention to all aspects of it, a constant revision of your books and personnel can be the difference between a successful company and a one that has to close”, added Salomon Juan Marcos Villarreal.

Productive business meetings

productive business meetings

How to have productive business meetings

We are starting a new year and it usually happens that the business meetings increase considerably once everyone is back from holidays, mainly to make collaboration plans, new announcements, changes within the company and all other important topics and when most of those meetings are really important, many of the employees usually complain for the waste of valuable time and energy. For this reason, we will give you some tips to make sure all of your business meetings are productive instead of a waste of energy.

“Meetings are necessary to have an organized company, but to do that, those meetings have to be an example of organization, watching important subjects and using no more than the necessary time to review all those pending matters, that will leave enough time to dedicate to the rest of the activities during a working day and avoiding unnecessary stress”, thinks Salomón Juan Marcos Villarreal, president of Grupo Denim.

Not all business meetings should be structured the same exact way, especially if they are improvised as it happens once in a while. If you plan a 60 minutes meeting, you do not necessarily need to spend the whole time, make sure everyone is focused on those subjects being reviewed and going straight to the point can save important time to finish the meetings before the planned time.

If you organize a business meeting to check on a project, it might seem pretty tempting to invite everyone who was once involved on it, but when that happens, you can end up with a room filled with people and having a hard time to reach to a solution quickly, remember that the assistants must have direct interest on the subject.

“Entrepreneurs are usually focused on improving the systems within their company, the same happens with the meetings, trying to make them more attractive and productive, but in order to reach this goal, new strategies should usually be implemented to get favorable results”, added Salomón Juan Marcos Villarreal about this topic.

Leader or manager

Leader or manager

How to difference a leader from a manager

A company needs different persons to handle various tasks and it is important to difference which ones should be done and assign a position to it, such as supervisor or manager.

The names of each position are directly attached to the power each person will have within the company, and of course, the responsibilities, for this reason we will go through the differences between a leader and a manger within a company.

A leader can accomplish all those tasks that none of the persons on any other positions can, as the own unique qualities that help them preventing being classified or molded as a manager or supervisor.

“A manager oversees what his subordinates do, he is in charge of delegating responsibilities and making sure they are done, as well as designating the tasks to be done every day and make sure to get results from them”, was the opinion of Salomon Juan Marcos Villarreal, president of Grupo Denim.

A leader, on the other side, tries not to have people below them, instead of that, they have people behind them, and those workers who follow a true leader are usually inspired by him or her, which is an important difference between a leader and a manager.

A manager seeks for the best way to reach the company’s goals, so their thoughts are focused to an end and they try to stick to a system, that is no wrong at all, but opposite to what the leader do, it is not too open to expansion or advancement.

“A manager does a great job by making his thing work in a company, while a leader goes further by innovate constantly and keep on looking on new ideas to expand businesses, both are great at their job and are valuable for a company, and each one has different positive attributes that contribute a company to grow up”, added Salomon Juan Marcos Villarreal.

Manufacturer businesses

Manufacturer businesses

Manufacturer businesses, lasting longer than any others in Mexico

For every 100 different types of businesses in Mexico, only 11 are able to remain open after 20 years, small businesses are the ones who tend to close earlier, mainly after they have been operating for more than 5 years.

Business life expectancies in Mexico, divided in sectors, depending on the type of activity they are dedicated to, shows a clear tendency for the manufacturer companies to have more positive prospects to keep on working, even more than trading companies or providers of services.

“Manufacturer business have meant a significant support for Mexican economy, as well as Mexican families who depend on the job sources provided by these companies”, was the opinion of Salomon Juan Marcos Villarreal, president of Grupo Denim.

15 of each 100 businesses manufacturing companies reach 20 years, the same than 12 of each 100 providers of services, while the rest tend to close before they meet 20 working years.

For the manufacturing sector, almost 7 of each 10 companies reach 1 year operating without any problems, while the trading sector or private services reduce their expectations by a 60%.

Five years are the inflection point, in general, for all businesses in Mexico. If you can reach this time the possibility of having a working company for more years increase significantly, since after this period of time, the chances to close are only a few.

At least a 70% in total of companies will be closed before they turn 5, and only a total of 11% will last for 20 years. The average survival expectancy for business is 7.7 years, no matter what the size or type of activity they have. Nevertheless, for all those businesses that reach 20 years, they can pretty much assure another 20 or 21 working years.

“Manufacturing businesses have proved to be highly competitive, which is favorable for Mexico, that is an important reason as to why many of these companies have defeated hard times and keeps operating through the years”, added Salomon Juan Marcos Villarreal.

Financial mistakes

Financial mistakes

Financial mistakes of an entrepreneur

An entrepreneur must take into account all aspects before deciding to begin a new business, such as lack of profits at the beginning, unexpected expenses, mismatches between payment due dates and some other aspects that might carry a company to financial disasters if they are not considered.

“Any entrepreneur should always consider that at the beginning of any business, the lack of incoming money, can be a financial problem, so they should always count with funds for sudden expenses”, commented Salomon Juan Marcos Villarreal, president of Grupo Denim, about this topic.

These are some common financial mistakes that an entrepreneur should always try to avoid:

  • Poorly planned Budget – One of the most common financial mistakes are to make a budget without considering the medium term needs first, as it would be by then when new investments should be done again in order to face the market, if this is not planned correctly, the entrepreneur can end at the beginning, so it is basic for a company to make financial plans from one to three years to the future, or up to 8 years for an industry. This plan, as its name shows, is only that, it is not necessary to be so strict about it, this plan should be checked and adjusted continuously, depending on the company’s needs.
  • Fixed expenses – An excess of fixed expenses can be the cause of a company’s failure, as there are many different aspects to consider before a new business begins. If an entrepreneur opens a business with many customers but if it is not on a centered place, you will not get too many customers, this means that the fixed expenses will be higher than the profits.
  • Excessive indebtedness – Another common mistake of an entrepreneur is to finance its business from its own pocket and get a bank loan for the rest, this could be the end for any businessmen. You should always consider that failure is not always due to the lack of customers only, it might be sometimes due to a wrong calculation of expenses and incomes.

“Success of any business depends on a good balance within it, an owner of a company must always find a good balance for the company’s budget, considering all aspects, such as not receiving payments on time, and as long as you consider all possible aspects, you can avoid any financial mistakes that can put your company into risk”, added Salomon Juan Marcos Villarreal.

Stress and its consequences

Stress and its consequencesStress and its consequences to health

Daily, we face too many labor challenges that lead you to a constant state of stress, which can bring serious consequences to health that might even be irreversible.

“Of course, actual life demands us to live in a much accelerated rhythm, but we should never forget that health goes first, that is why it is extremely important to take rests and decelerate every day before stress gets to beat us”, was the opinion of Salomon Juan Marcos Villarreal.

Here are some of the health consequences that you can face by staying in a constant state of stress:

  • Body ache: One of the most frequent aches caused by stress are usually on shoulders, waist and neck, this is not only a consequence of a bad posture on the chair used by so many hours by a worker, but also for the tension of the body.
  • Exhaustion: Stress can also carry a state of boredom, frustration and excessive fatigue, this might also cause a worker to lose interest on his daily tasks.
  • Headache: Another common symptom is headache, caused by the excessive concentration that a person might put on his tasks, as well as the extra effort to do all his work before the day ends, but be careful as a headache can also be caused by a need of glasses, or by not using the correct eyeglasses.
  • Obesity: Labor stress can cause weight problems in a person, as most people just have a few times during the working hours, which makes them eat fast and unhealthy meals.

“Some people think stress is “normal”, as it helps a person to be alert during the day, but stress is more serious than it seems and it is hard to control and, at the end, it can bring consequences to health, so it is very important to try to accomplish all daily goals but without letting stress to get hold on any of us”, added Salomon Juan Marcos Villarreal.

Demand of denim pants

Demand of denim pants

Demand of denim pants in Mexico

Denim pants have become a basic garment in all wardrobes every year, and is one of the most sold clothing in Mexico, as the market dedicated to sell these jeans represent a 30%, a number that cannot be compared with any other type of clothes.

The demand of denim pants has also increased internationally, as nowadays the manufacturing enterprises of these garments are working hardly to be able to meet their delivery compromises with their customers in Mexico and out of the country.

“Denim pants are the most wanted by customers of all ages due to their durability, low costs and new designs that are being handled and makes them more attractive to all public”, commented, Salomon Juan Marcos Villarreal, president of Grupo Denim, a company dedicated to manufacture and distribution of denim pants.

These clothes give a total profit of 7,850 million dollars in sells every year in Mexico.

All Mexicans have an average of 5 denim pants on their wardrobe, price for jeans in Mexico go from 250 to 500 pesos and they are mainly bought in clothing stores, and in less quantities in self-service stores and supermarkets.

Mexican people looks for quality, resistance and durability in the jeans they buy, more than finishes or trimmings on a garment, and manufacturers consider this when they make their jeans to be sold nationally, in order to manufacture garments that meet their requests.

Comarca Lagunera is nowadays one of the most important sectors for jeans manufacturing in Mexico, as this part of the country produces up to 3 million garments per week.

“Denim pants are comfortable, fit perfectly well in each body, they last for too long and are easy to combine, for these reasons among many more, they are the favorite garments for lots of people”, added Salomon Juan Marcos Villarreal.