Project Control: The Strategic Compass for Project Managers

/0 Comentarios/en /por

Para español, haga clic aquí

Understanding Control in Project Management

In project management, control is not merely a procedural step—it’s the backbone that ensures objectives are achieved as planned.
Control can be defined as “the process of monitoring activities to ensure they are accomplished as planned and correcting any significant deviations.”

Without control, even the most detailed project plan becomes a wish list. A strong control system allows project managers to evaluate performance, detect variances early, and take corrective action to keep the project aligned with its goals.

An effective control system does more than track progress—it ensures that every activity contributes directly to achieving the organization’s objectives. As management theory states, the real measure of control effectiveness is how well it helps managers meet organizational goals.

Why Control Matters for Project Managers

For project managers, control is both a discipline and a safeguard. Its importance lies in ensuring that strategy turns into tangible results. Some of the key reasons control is indispensable include:

  • Performance Comparison: Control provides a structured way to compare actual performance with what was planned. Without this, managers cannot assess whether progress is on track.

  • Deviation Detection: It helps identify cost overruns, schedule delays, and quality issues before they escalate into major problems.

  • Strategic Alignment: Control mechanisms ensure that every task remains connected to the broader strategic objectives of the organization.

  • Risk Mitigation: Early detection of deviations allows for preventive and corrective measures, reducing the impact of uncertainty and risks.

  • Transparency and Communication: Reliable control data fosters trust and clear communication among stakeholders, enabling informed decision-making.

In short, control transforms uncertainty into actionable insight. It’s what allows managers to steer projects proactively rather than reactively.

Key Methodologies and Tools for Effective Control

Modern project management offers various methodologies and tools to establish strong control mechanisms. The choice depends on the project’s nature, scope, and complexity:

  • Earned Value Management (EVM): Integrates scope, time, and cost to assess project performance and predict future trends.

  • Work Breakdown Structure (WBS): Divides the project into manageable components, allowing control at multiple levels.

  • Gantt Charts and Kanban Boards: Offer visual tracking of timelines, dependencies, and workflow.

  • Critical Path Method (CPM): Identifies key activities that directly impact the project’s completion date.

  • Risk, Change, and Quality Control: Beyond scope and schedule, effective control extends to quality assurance, stakeholder engagement, and change management.

Successful project managers often blend these tools—choosing the right mix that aligns with their organization’s culture and project dynamics.

The Eight Key Steps of Project Control

Implementing a robust control system requires following a structured process. The following steps outline a practical roadmap for project managers:

  1. Define Standards and Baselines: Establish clear performance expectations in scope, schedule, cost, and quality. Without a baseline, there’s no benchmark for comparison.

  2. Monitor Actual Performance: Collect real-time data on progress, costs, resources, and quality metrics.

  3. Compare Actual vs. Planned Results: Identify any discrepancies between expected and actual outcomes.

  4. Analyze Deviations: Determine root causes—planning errors, execution gaps, unforeseen risks, or uncontrolled changes.

  5. Take Corrective or Preventive Actions: Implement measures to realign the project—reallocate resources, adjust schedules, or negotiate scope changes.

  6. Adjust the Control System: A good control system evolves; adapt it to changing project contexts or agile environments.

  7. Communicate Results and Adjustments: Keep stakeholders informed about progress, risks, and mitigation plans to maintain transparency.

  8. Review and Learn: At project closure, document lessons learned and assess control effectiveness to improve future performance.

These steps ensure that control remains dynamic, data-driven, and aligned with strategic priorities.

Conclusion: Control as a Leadership Practice

For project managers, control is not about surveillance—it’s about steering.
When applied with insight and consistency, control transforms management from routine oversight into a leadership tool that ensures value creation.

An effective control system is one that enables goal achievement, not one that merely reports deviations. So the key question every project manager should ask is:

“Does my control system truly help me achieve the project’s and the organization’s objectives?”

If the answer is yes, control becomes not a constraint—but your most powerful lever for success.

References 

Mastering Control: The Art of Keeping Projects on Track

Business Information Systems: A Strategic Advantage for Entrepreneurs

/0 Comentarios/en /por
Para español, haga clic aquí

In today’s competitive environment, entrepreneurs must make fast and accurate decisions to differentiate and grow. This is where information systems become critical tools, turning raw data into valuable insights that support both daily operations and long-term strategies.

What are information systems?

An information system is a structured process that collects, processes, and distributes information to support decision-making within organizations (Gómez Vietes & Suárez Rey, 2007). In simple terms, it transforms data into actionable knowledge that allows entrepreneurs to identify risks, opportunities, and improvement areas.

Types of information systems and their value

Information systems operate at different organizational levels (Proaño, Orellana, & Martillo, 2018):

  • Operational level (TPS): manage daily transactions such as sales, payments, or inventory.
  • Knowledge level (KWS and Office Systems): support professionals who create and manage information, fostering productivity and innovation.
  • Management level (MIS and DSS): provide reports and decision-support tools for managers, helping them analyze alternatives and scenarios.
  • Strategic level (ESS): used by executives for non-routine, complex decision-making.

Additionally, specialized systems offer unique benefits for entrepreneurs:

  • ERP (Enterprise Resource Planning): integrates finance, operations, logistics, and inventory into one system.
  • CRM (Customer Relationship Management): strengthens customer relationships, attracting and retaining valuable clients.
  • SCM (Supply Chain Management): optimizes supply chains, improving efficiency and reducing costs.
  • GIS (Geographic Information Systems): analyze location-based data for strategic decision-making, such as logistics or marketing.

Applications for entrepreneurs

Information systems not only improve efficiency, they also enable growth and innovation. Their value depends on how they are embedded into the company’s culture and how strategically they are used (Stair & Reynolds, 2010).

For entrepreneurs, these systems mean:

  • Better control over operations.
  • Reliable information for faster decision-making.
  • Greater agility to respond to market changes.
  • Competitive advantages in cost efficiency, service, and differentiation.

The internet and ICT (Information and Communication Technologies) have accelerated this transformation, making information systems indispensable for businesses aiming to compete globally.

Conclusion for entrepreneurs

Running a business without information systems is like navigating without a compass: you may move forward, but with a high risk of losing direction. Accurate and timely information is the most valuable resource for making strategic decisions, identifying opportunities, and adapting to market changes.

If you are starting your business, begin with simple solutions—like a CRM or inventory management software—and expand to more comprehensive systems as your business grows. Remember: competitive advantage does not come from having data alone, but from interpreting and using it to create value.

Entrepreneurs who integrate information systems into their strategy not only manage their businesses more effectively but also build a strong foundation to scale, innovate, and sustain long-term success.

References

Gómez Vietes, A., & Suárez Rey, C. (2007). Los sistemas y tecnologías de la información en la empresa. México D.F.: Alfaomega.

Lapiedra, R. A., Devece, C. C., & Guiral, J. H. (2011). Introducción a la gestión de sistemas de información de la empresa. España: Universitat Jaume.

Proaño, M., Orellana, S., & Martillo, I. (2018). Los sistemas de información y su importancia en la transformación digital de la empresa actual. Revista Espacios, 39(1).

Stair, R. M., & Reynolds, G. W. (2010). Principios de sistemas de información: un enfoque administrativo. México D.F.: Cengage Learning Editores S.A. de C.V.

Information Systems for Entrepreneurs

Differences between Plan, Program, Project, Activity, and Task

/0 Comentarios/en /por

Para español, haga clic aquí

What do we mean by “Project”?

A project refers to a set of specific, interrelated, and coordinated activities, carried out with the purpose of producing certain goods or services that meet people’s needs or solve problems. For example, a course for senior citizens or an educational initiative.

When the planned action is complex, it may require a program that includes several projects. On the other hand, a simple task may be developed through a single project.

What does it mean to design and develop a project?

There is no rigid standard, but rather a set of guidelines to help organize ideas, define objectives, establish courses of action, identify specific activities, and set evaluation criteria. The general principles to consider include:

  • Defining what is to be achieved.

  • Effectively implementing decisions using both human and non-human resources (e.g., materials, technology, etc.).

  • Following a course of action that leads to specific results or deliverables.

  • Establishing criteria that allow for systematic evaluation of the outcomes.

Differences between: Plan, Program, Project, Activity, and Task

Let’s break down each concept to understand how they differ yet relate to each other:

Plan

Example: Training and Development Plan

A plan involves high-level decisions that express key political or strategic guidelines, priorities derived from those decisions, and the allocation of resources aligned with such priorities. It outlines the action strategies and tools to achieve the proposed goals. A plan defines the desirable and probable course of national or sectoral development (economic, social, or cultural).

Plans generally include multiple programs and projects, and act as the overarching technical and political framework within which programs and projects are developed.

Program

Example: Supervision Program

A program refers to an organized, coherent, and integrated set of activities, services, or processes, usually expressed through multiple interrelated or coordinated projects. Programs translate plans into action by implementing targeted efforts to meet objectives within a specific timeframe.

A program consists of one or more projects of similar nature, grouped under a broader plan.

Project

Example: Park Reforestation Project

A project is the intent or plan to execute a specific work or initiative. It involves forecasting, organizing, and planning a series of activities that combine human, material, financial, and technical resources to achieve a specific goal or result.

These activities are interconnected and coordinated. Every project is designed to produce a defined output or result, within the constraints of time and budget.

Key Features of a Project:

  • Has a defined duration (unlike ongoing services).

  • Combines human, technical, financial, and material resources.

  • Aims to achieve a specific result based on well-defined objectives.

Activity

Example: Conducting a Requirements Survey for Plant Operations

An activity is a means of intervention, consisting of sequential and integrated actions that help achieve the specific goals and objectives of a project. It is the functional unit that connects a project’s strategy to its execution.

Task

Example: Preparing Necessary Equipment

A task is the most concrete and specific element. It operationalizes an activity into actionable steps. A set of tasks makes up an activity.

Summary with Examples

Concept Example
Plan Social Services Plan
Program Childhood and Family Program
Project Organizing a Summer Camp
Activity Planning a Field Trip
Task Packing clothes and shoes

Final Thoughts

 

Plans, programs, and projects are strategic and administrative tools commonly used by institutions, particularly those involved in research, education, and development. They serve as essential conditions for achieving scientific or social objectives, often from the perspective of institutional planning and execution.

References

  • Chiavenato, I. (2006). Administración de proyectos. McGraw-Hill Interamericana.

  • Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling (12th ed.). Wiley.

  • PMBOK® Guide. (2021). A Guide to the Project Management Body of Knowledge (7th ed.). Project Management Institute.

  • Zapico, E. (2001). Diseño y Evaluación de Proyectos Sociales. Editorial Trillas.

Differences between Plan, Program, Project, Activity, and Task

10 Steps to Build a Successful Project (Including Starting Your Own Business)

/0 Comentarios/en /por
Para español, haga clic aquí

Launching a business is, in essence, a project—a temporary endeavor aimed at delivering a unique result. Applying structured project management principles can significantly increase your chances of success. Here are the 10 essential steps to guide your journey, whether you’re launching a startup or managing an internal project.

1. Identify the business need

Every project starts with a reason. Ask yourself: What problem am I solving? What opportunity am I pursuing? This clarity sets the foundation for focus, team alignment, and funding.

2. Define a SMART goal

Your goal must be: Specific, Measurable, Achievable, Relevant, and Time-bound. Choose a project name that reflects its purpose and can be used for branding and internal alignment.

3. Describe the deliverable

What will you deliver at the end? Be it a product, service, or system, having a well-defined deliverable helps measure project success effectively.

4. Identify stakeholders and communication needs

Stakeholders include clients, investors, team members, and even the community. Define their roles, expectations, and how you’ll communicate with them throughout the project.

5. Define the project scope

Clarify what the project will and will not include. This prevents scope creep and keeps the delicate balance between Scope-Time-Cost.

6. Establish assumptions (premises)

These are the conditions we assume to be true during planning. For example, “the market research will validate demand” or “we will receive permits on time”.

7. Recognize constraints

Time, budget, legal frameworks, resource availability—constraints define your playing field. Identify and document them clearly.

8. Identify and assess risks

What could go wrong? How likely is it? What would be the impact? Design mitigation strategies to deal with high-impact or high-probability risks.

9. Document and communicate the project plan

Your project plan should include a timeline, responsibilities, risks, budget, and progress reports. Maintain a project log and update stakeholders regularly.

10. Build and empower your project team

People are your most important asset. Share your vision, foster healthy communication, maintain work-life balance, and build a resilient, positive culture.

🔚 Final Thought

Entrepreneurship is both an art and a discipline. With the right structure, a collaborative team, and a clear plan, your idea can become a reality.

We invite you to join our community, co-create with passionate professionals, and bring your entrepreneurial spirit to life. Let’s build the future together!

 

📚 References (APA Format)

  • Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th ed.). Project Management Institute.
  • Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling (12th ed.). Wiley.
  • Ries, E. (2011). The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Crown Business.

10 steps to Create a Successful Project

Basic Principles of Insurance: Foundations, Types, and Regulation

/0 Comentarios/en /por
Para español, haga clic aquí

Essential knowledge for financial advisors and insurance professionals in training

Introduction

In a world filled with uncertainty, insurance emerges as a vital financial protection tool. It is more than a legal contract—insurance is a mechanism by which individuals transfer economic risk to an insurer in exchange for a premium. This transfer allows policyholders to face potential future losses without jeopardizing their financial stability. As such, insurance plays a central role in both personal and business financial planning.

The Role of Insurance in Society

Insurance fulfills a key social role by indemnifying policyholders after a covered loss. Indemnification aims to restore the financial position held before the incident occurred. Its most significant benefits include:

  • Elimination of unpredictable, potentially devastating costs.

  • Stability and continuity for families, businesses, and communities.

  • Support for economic development by managing risk exposure.

Insurance also entails costs: administration, regulation, fraud, and potential misuse. Therefore, a strong regulatory framework is essential for its effective operation.

Types of Insurance Companies

Insurance entities vary widely and can be grouped as follows:

1. Private Insurers

These include stock (non-participating) and mutual (participating) companies.

  • Stock companies: Owned by shareholders; issue non-participating policies; seek profits for investors.

  • Mutual companies: Owned by policyholders; share surplus through dividends.

2. Fraternal and Reciprocal Insurers

  • Fraternals: Nonprofit organizations serving members with common traits such as religion or ethnicity.

  • Reciprocals: Members collectively insure each other without a central corporate insurer.

3. Captive Insurers

Created and owned by a parent company to cover internal risk exposure. Common for risk control and cost efficiency.

4. Reinsurers

Insure primary insurers, allowing them to manage large risk exposures. They operate through:

  • Facultative reinsurance: Case-by-case agreements.

  • Treaty reinsurance: Ongoing automatic agreements.

Other Market Models and Participants

  • Risk Retention Groups (RRGs): Provide liability insurance to members with a shared interest.

  • Risk Purchasing Groups (RPGs): Buy insurance on behalf of members.

  • Surplus lines insurers: Offer coverage unavailable in the standard market through specialized brokers.

  • Self-insurers: Companies that fund their own risk pools.

Distribution and Sales of Insurance

Insurance products reach consumers through:

  • Appointed agents: Represent one or multiple insurers.

  • Brokers: Represent policyholders.

  • Agency systems: From career to independent models, each with specific structures and goals.

  • Direct and digital marketing: Increasingly used for wider reach and efficiency.

Internal Operations of Insurance Companies

Insurers operate through specialized departments:

  • Underwriting: Assesses risks and policy conditions.

  • Actuarial: Calculates rates, reserves, and dividends.

  • Claims: Handles investigations and payments.

  • Sales and marketing: Interfaces with clients and markets.

Key personnel includes producers, adjusters, and underwriters—each with critical roles in client relations and risk evaluation.

Insurance Regulation and Oversight

Insurance is primarily state-regulated in the U.S., though federal laws complement oversight. Landmark rulings and acts like the McCarran-Ferguson Act and the Fair Credit Reporting Act shape the landscape. Regulatory aims include consumer protection and market solvency.

Organizations like the NAIC and NCOIL promote uniform standards and ethics, guiding legislation and regulatory practices.

Ethics, Ratings, and Producer Responsibilities

Ethical sales practices involve:

  • Matching products with client needs.

  • Transparent communication.

  • Post-sale service and documentation.

  • Long-term relationship building.

Rating agencies like A.M. Best evaluate insurer financial strength, offering transparency and helping regulators and customers make informed decisions.

Conclusion

Insurance is more than a contract—it is a safety net, a planning tool, and a key to financial stability. Understanding its principles, structures, and regulations is essential for professionals and consumers alike, empowering better decisions and greater peace of mind.

References

National Association of Insurance Commissioners (NAIC). (2024). NAIC Model Laws, Regulations, Guidelines and Other Resources. https://content.naic.org

McCarran-Ferguson Act, 15 U.S.C. §§ 1011–1015 (1945).

U.S. Department of the Treasury. (2023). Insurance Sector Profile. https://home.treasury.gov

Insurance Information Institute. (2024). How Insurance Works. https://www.iii.org

Best, A. M. (2024). Insurance Ratings and Financial Strength. https://www.ambest.com

Protection for when life changes - Life insurance with lifetime benefits

Principios Básicos de los Seguros: Fundamentos, Tipos y Regulación

/0 Comentarios/en /por
For english, Click here

Capacitación esencial para asesores financieros y aseguradores en formación

Introducción

En un mundo donde la incertidumbre es constante, el seguro surge como una herramienta fundamental para la protección financiera. No se trata solo de un contrato legal, sino de un mecanismo mediante el cual las personas transfieren un riesgo económico incierto a una aseguradora, a cambio del pago de una prima. Este intercambio permite al asegurado enfrentar posibles pérdidas futuras sin comprometer su estabilidad económica. Así, los seguros no solo protegen, sino que también actúan como pilares esenciales dentro de la planificación financiera personal y empresarial.

¿Qué papel juegan los seguros en la sociedad?

Los seguros cumplen una función social clave al indemnizar a los asegurados tras una pérdida cubierta. Esta indemnización —que busca restaurar la situación financiera previa al siniestro— ofrece seguridad, tranquilidad y continuidad a familias, negocios y comunidades. Entre sus beneficios más destacados están:

  • La eliminación de los costos inesperados derivados de eventos catastróficos.

  • La creación de una economía más estable y predecible.

  • El respaldo a proyectos personales y empresariales al mitigar el riesgo financiero.

Sin embargo, el seguro también implica costos: administración, regulación, fraudes y mal uso del sistema. Por eso, su operación debe estar cuidadosamente supervisada y estructurada.

Tipos de compañías aseguradoras

El sector de seguros es diverso y comprende múltiples tipos de entidades. Podemos clasificarlas en:

1. Aseguradoras privadas

Pueden ser compañías por acciones (no participantes) o mutuas (participantes).

  • Compañías por acciones: Propiedad de inversionistas; emiten pólizas no participativas; buscan la rentabilidad para sus accionistas.

  • Mutuas: Propiedad de los asegurados; reparten excedentes en forma de dividendos de póliza.

2. Sociedades fraternales y recíprocas

  • Fraternales: Organizaciones sin fines de lucro, que ofrecen seguros a miembros unidos por etnicidad, religión o nacionalidad.

  • Recíprocas: Grupos en los que los asegurados asumen riesgos colectivos sin una entidad aseguradora como tal.

3. Aseguradoras cautivas

Establecidas por una empresa matriz para asegurar sus propios riesgos. Su existencia ha crecido por razones de control y costos.

4. Reaseguradoras

Aseguran a las aseguradoras, permitiendo que estas limiten su exposición al riesgo ante pérdidas significativas. Los contratos pueden ser:

  • Facultativos: Específicos y no automáticos.

  • De tratado: Reparten riesgos bajo acuerdos constantes.

Otros modelos y entidades del mercado asegurador

  • Grupos de Retención de Riesgos (RRG): Compañías creadas para asegurar a miembros con un interés común, reguladas por el estado de origen.

  • Grupos de Compra de Riesgos (RPG): Compran seguros a nombre de sus miembros.

  • Líneas excedentes: Coberturas no disponibles en el mercado autorizado, ofrecidas a través de corredores especializados.

  • Autoaseguradores: Empresas que establecen sus propios fondos de cobertura ante pérdidas.

Distribución y comercialización de seguros

Los seguros pueden venderse a través de:

  • Agentes designados: Representan a una o varias compañías.

  • Corredores: Representan a los asegurados.

  • Sistemas de agencia: Desde agencias de carrera hasta agencias independientes, cada una con sus propias estructuras y objetivos.

  • Marketing directo y digital: Utilizado cada vez más para llegar al consumidor final de manera rápida y eficaz.

Funcionamiento interno de una aseguradora

Una compañía de seguros cuenta con departamentos especializados:

  • Suscripción: Evalúa riesgos y define condiciones.

  • Actuarial: Calcula tarifas, reservas y dividendos.

  • Siniestros: Procesa y paga reclamaciones.

  • Ventas y marketing: Contacto directo con el cliente.

Además, figuras como los productores, ajustadores y suscriptores juegan un papel esencial en la operación y servicio al cliente.

Marco regulatorio de los seguros

La regulación del sector busca proteger al consumidor y garantizar la solvencia del sistema. En EE. UU., la supervisión está descentralizada a nivel estatal, aunque con respaldo federal cuando es necesario. Casos emblemáticos y leyes como la Ley McCarran-Ferguson, la Ley de Informes de Crédito Justos o la Ley USA PATRIOT han moldeado esta estructura.

Organismos como la NAIC (National Association of Insurance Commissioners) y la NCOIL (National Conference of Insurance Legislators) elaboran modelos normativos y estándares éticos para asegurar la transparencia y eficiencia del sector.

Ética, calificación y responsabilidad profesional

El comportamiento ético de los productores incluye:

  • Vender productos adecuados a las necesidades del cliente.

  • Divulgación clara y precisa.

  • Servicio continuo post-venta.

  • Documentación y seguimiento.

Además, agencias como A.M. Best califican la solidez financiera de las aseguradoras, ayudando a los consumidores y reguladores a tomar decisiones informadas.

Conclusión

Los seguros son más que contratos: son una red de seguridad, una herramienta de estabilidad financiera y un motor de confianza en el desarrollo económico. Comprender sus principios, actores y regulación es esencial no solo para quienes trabajan en el sector, sino también para cualquier ciudadano que desee tomar decisiones financieras responsables.

Bibliografía

National Association of Insurance Commissioners (NAIC). (2024). NAIC Model Laws, Regulations, Guidelines and Other Resources. https://content.naic.org

McCarran-Ferguson Act, 15 U.S.C. §§ 1011–1015 (1945).

U.S. Department of the Treasury. (2023). Insurance Sector Profile. https://home.treasury.gov

Insurance Information Institute. (2024). How Insurance Works. https://www.iii.org

Best, A. M. (2024). Insurance Ratings and Financial Strength. https://www.ambest.com

Proteccion para cuando la vida cambia

The Power of Saving: A Key Tool for Financial Health

/0 Comentarios/en /por
Para español, haga clic aquí

Saving is more than setting money aside—it’s a conscious and strategic decision that shapes how we live and how we prepare for the future. In today’s world, where financial uncertainty and unexpected expenses are part of everyday life, promoting a culture of saving is more important than ever.

Saving means allocating a portion of your income to achieve a goal or create a safety fund to handle emergencies. This simple definition becomes a powerful habit when practiced with consistency, discipline, and vision. People save for many reasons: a vacation, a new computer, a better car, an investment, or covering unexpected medical expenses.

Saving: More Than a Financial Practice

Saving goes beyond a money management tactic—it’s an act of responsibility and foresight. It’s about thinking ahead without neglecting the present. In essence, it’s a way to walk steadily through life, knowing you’re prepared to face contingencies or achieve personal and family goals.

Seen this way, saving isn’t about sacrifice—it’s about investing in peace of mind, security, and progress. A well-established emergency fund helps avoid falling into debt or risking your assets during tough times. On the other hand, saving for a specific goal can reduce anxiety and increase motivation, because each dollar saved has purpose.

The Culture of Saving: From Individuals to Nations

The culture of saving begins at home, grows in communities, and is reflected in national economies. Individuals who save regularly make better financial decisions, prioritize more effectively, and appreciate the value of their earnings.

Within families, saving leads to greater stability. A family savings fund can be the difference between managing a medical emergency with confidence or being overwhelmed by debt. Teaching children and young people to save fosters a sense of responsibility, financial literacy, and long-term planning.

On a community level, savings foster development. Community savings groups, cooperatives, and microfinance initiatives help vulnerable populations gain access to credit, start small businesses, and improve their living conditions.

Nationally, a society that saves invests in its own growth, reduces its reliance on foreign debt, and builds resilience against economic crises. Domestic savings fuel productive investment and strengthen economies over time.

Saving and Financial Inclusion

In many parts of the world—especially in developing countries—access to formal financial services remains limited. Encouraging saving also means expanding options for people to participate safely in the financial system.

Financial inclusion enables and promotes saving. Low-cost bank accounts, mobile apps, credit unions, and financial education tools make it easier for people to manage money effectively and build a savings habit.

Insurance plays a key complementary role. Health, life, and major expense insurance ensure that savings are preserved and used for growth rather than depleted in emergencies. Together, saving and financial planning through insurance offer a solid foundation for personal and family stability.

How to Start Saving

For many people, saving may seem like a distant goal—especially when their income barely covers basic needs. Still, small steps can lead to significant progress. Here are some practical tips:

  1. Set a clear goal. Know what you’re saving for—whether it’s an emergency fund, a trip, or retirement. Clear goals increase motivation.
  2. Create a monthly budget. Understanding where your money goes helps you find opportunities to save.
  3. Automate savings. Schedule regular transfers to a separate savings account so you’re not tempted to spend the money first.
  4. Be consistent. Saving even small amounts regularly is more powerful than sporadic big savings.
  5. Avoid unnecessary debt. High-interest loans can hinder your ability to save. Reduce liabilities to gain financial freedom.
  6. Seek advice. A financial advisor or insurance agent can help you create a tailored saving and protection plan.

Saving as a Form of Freedom

Saving also represents freedom. It gives you the ability to make decisions—whether that’s leaving a toxic job, starting a business, or taking time to study. It means living without constant financial stress and having more control over your choices.

Saving is not about living in fear of spending. It’s about awareness—knowing when and how to use your resources wisely. Every financial decision has consequences, and most of them are positive when made with preparation and responsibility.

Conclusion: Building a Better Future, Starting Today

Saving means preventing and anticipating. It’s about facing the future with responsibility and walking with confidence in the present. That’s why the culture of saving benefits not only individuals and families but also communities and nations.

Cultivating this habit—no matter your income level—is planting seeds of stability, confidence, and progress. In a world filled with uncertainty, saving is a tangible way to live better today while building a better tomorrow.

In short, saving is more than a financial tactic—it’s a way of life. A responsible, conscious, and empowering lifestyle. Let’s embrace the habit of saving, not just as a strategy, but as a commitment to ourselves and our future.

Practical tips to start saving

📚 References (APA style)

  • Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros (CONDUSEF). (2022). La importancia del ahorro y su impacto en las finanzas personales. https://www.gob.mx/condusef
  • Organización para la Cooperación y el Desarrollo Económicos (OCDE). (2023). OECD/INFE 2022 International Survey of Adult Financial Literacy. https://www.oecd.org/financial/education
  • Surowiecki, J. (2005). The Wisdom of Crowds. Anchor Books.
  • World Bank. (2021). Financial Inclusion Overview. https://www.worldbank.org/en/topic/financialinclusion
  • Lusardi, A., & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature, 52(1), 5–44. https://doi.org/10.1257/jel.52.1.5

Ways to Generate Income: Which One Is Right for You?

/0 Comentarios/en , /por
Para español, haga clic aquí

In a constantly changing economic landscape, more people are asking: What’s the best way to generate income? The answer depends on personal goals, lifestyle, and risk tolerance. Understanding the advantages and disadvantages of each income model will help you make smarter financial decisions.

Let’s explore the four main income paths: traditional employment, freelancing, entrepreneurship, and passive income. Each offers unique benefits and challenges.

1. Traditional Employment

Advantages:

  • Stable and predictable income (fixed salary).
  • Benefits such as health insurance, vacation, bonuses, etc.
  • Low financial risk.
  • Structured work environment with clear processes.

Disadvantages:

  • Limited flexibility in schedule.
  • Limited control over career growth or salary increases.
  • Risk of layoffs or corporate restructuring.
  • Less autonomy and creativity in decision-making.

Best for: Those seeking stability, benefits, and a clear work structure.

2. Freelancing / Independent Work

Advantages:

  • More freedom with schedule and location.
  • Control over which projects to take on.
  • Potential to earn more if well-managed.
  • Continuous skill development.

Disadvantages:

  • Unstable and unpredictable income.
  • No access to employment benefits.
  • Requires strong self-management and sales skills.
  • Requires investment in training and marketing.
  • High responsibility for results and deadlines.

Best for: Self-motivated individuals with specialized skills and a desire for freedom.

3. Entrepreneurship (Starting Your Own Business)

Advantages:

  • High potential for growth and scalable income.
  • Full control over decisions and business direction.
  • Opportunity to build a personal brand or legacy.
  • Emotional satisfaction from creating something of your own.

Disadvantages:

  • High financial risk, especially at the beginning.
  • Significant investment of time, money, and energy.
  • Uncertainty during the early stages.
  • Emotional pressure from stress and responsibilities.

Best for: Innovators with a high tolerance for risk and a strong desire for independence.

4. Passive Income (Rentals, Investments, Royalties)

Advantages:

  • Earnings without constant work.
  • Long-term financial freedom.
  • Opportunity to accumulate wealth over time.
  • Can be combined with other income types.

Disadvantages:

  • Requires initial investment of time or capital.
  • Risk of losses in volatile markets.
  • May take years to build reliably.
  • Requires solid financial literacy.

Best for: Individuals with capital to invest or long-term financial planning goals.

The Power of Independence and Entrepreneurship

While each income path has pros and cons, independent work and entrepreneurship offer something unique: freedom. Freedom to choose, to create, and to not depend on a single paycheck.

In today’s dynamic world, the ability to rely on your skills and create your own opportunities becomes a strategic advantage. It’s not easy—but it can lead to a life that’s more creative, flexible, and fulfilling.

Most entrepreneurs start with thousands of dollars in startup costs: hiring staff, investing in marketing, quitting their jobs, and building their own systems. But with the right mindset and support, they can create a future that truly reflects their values.

Support and Tools to Help You Succeed

You don’t have to do it alone. With today’s resources, starting your journey is more accessible than ever:

  • Weekly training to speed up your learning curve.
  • Online education for flexible and fast learning.
  • Mobile and digital tools to manage and track your business anytime.
  • Corporate support for guidance, tools, and help when you need it.
  • Training manual with a proven system that works as fast as your ambition.
  • Annual conventions packed into three exciting days of learning, networking, and motivation.
  • Competitive compensation plans and incentive trips with prizes and contests designed to reward your success.

Ready to Take Control of Your Future?

If you’re ready to explore real ways to achieve financial and personal goals, get in touch with us today. We’ll show you how to build a business that suits your vision and values.

📩 Contact us now to start building the life you truly want.

  •  

Las formas de Generar ingresos

References (APA Style)

  • Covey, S. R. (2020). The 7 Habits of Highly Effective People. Simon & Schuster.
  • Kiyosaki, R. T. (2022). Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!. Plata Publishing.
  • Robbins, A. (2015). Awaken the Giant Within. Free Press.
  • Sánchez, J. M. (2021). Financial Education for Entrepreneurs. Alfaomega.
  • Téllez, L. (2023). Start Without Fear. Planeta Publishing.

Learn to Analyze Your Business Figures

/0 Comentarios/en , /por
Para español, haga clic aquí

Understanding your business’s financial figures is not only a good practice, but a necessity to ensure its sustainability, growth, and profitability. One of the most common mistakes in small and medium-sized businesses is making decisions based on incorrect perceptions or assumptions, often due to a lack of understanding of basic concepts such as Gross Profit Margin (GPM) . This metric is critical because it represents the direct profitability of the products or services sold, before considering operating expenses, taxes, and other indirect costs.

Gross profit margin is the difference between sales revenue and the cost of goods sold (COGS). This margin is generally expressed as a percentage of total sales. In other words, it tells us how much of each peso sold remains as gross profit, allowing us to assess the efficiency with which resources are being used for production and sales.

Practical example:

Let’s say you buy a television for 1,000 pesos and sell it for 1,300 pesos. The difference between the selling price and the acquisition cost is 300 pesos. At first glance, the profit margin may appear to be 30%, but this calculation is incorrect if based on cost. To obtain the correct MUB, the calculation must be based on the selling price:

MUB (%) = (Profit / Selling Price) x 100 = (300 / 1300) x 100 = 23.08%

This example demonstrates how many entrepreneurs overestimate their profits, believing they are earning more than they actually are. This overestimation can lead to inappropriate pricing strategies, underestimated operating costs, or misallocated resources, creating financial imbalances.

Importance of MUB in business management

Knowing the gross profit margin allows you to:

  • Have a clear vision of the profitability of each product or service.
  • Set appropriate prices.
  • Detect opportunities for improvement in the supply chain or cost structure.
  • Make informed decisions about investment, savings, and growth.
  • Make more accurate financial projections.

It’s important to clarify that this analysis should be performed without considering taxes, discounts, returns, or other indirect expenses, as the MUB focuses on the relationship between sales and direct costs. Once the MUB is known, we can move on to the net income analysis, which already considers all expenses and taxes, allowing for a comprehensive evaluation of the business.

Therefore, mastering this type of analysis not only gives you control, but also provides tools to navigate intelligently in today’s competitive environment, where every percentage point of profit counts.

I hope I’ve encouraged you to review your company’s numbers and, accordingly, keep your quarterly planning within realistic parameters. If you have any questions, please don’t hesitate to contact us. We look forward to hearing from you!

We also invite you to review our article “Practical tips to improve your financial situation – Personal budget” , where you will have an approach to personal finances and thus you can learn to make more assertive decisions for your family and business.

Wealth for Everyone: Secrets of Financial Success

Bibliography (APA format):

  • Gitman, L.J., & Zutter, C.J. (2015). Principles of Financial Management (14th ed.). Pearson Education.
  • Horngren, CT, Sundem, GL, & Stratton, WO (2014). Management accounting (14th ed.). Pearson Education.
  • Brigham, E.F., & Houston, J.F. (2019). Fundamentals of Financial Management (15th ed.). Cengage Learning .
  • Ross, S.A., Westerfield , RW, & Jordan, B.D. (2016). Fundamentals of corporate finance (11th ed.). McGraw-Hill Education .
  • Saldaña, MJ (2021). Financial Analysis for Entrepreneurs: How to Understand Your Business’s Numbers . Emprende Fácil Publishing House.