What should Rosemary do?
Rosemary has several steps that she needs to take to ensure that she is protecting her business. It is very surprising to know that as a brand new business owner Rosemary would have limited availability for her new business venture. Rosemary has to find more time to be hands on in the early stages to ensure that she does have the proper checks and balances in place. The hiring of a friend or a family member can often bring issues of self-entitlement, or that they are exempt from other duties. Rosemary has to address the issues of theft immediately. Kate should definitely be terminated. How can Rosemary be certain that she would not steal again? If Rosemary decides to keep her on as an instructor, she may continue to conduct business on the side on her time and reduce the amount of clients that Rosemary has for her business. Rosemary has to implement some checks and balances if she plans to be successful. She needs to engage herself in more of the day to day operation. I would suggest she use a management accounting software, so that all sales are accounted for. Rosemary should offer other payment methods such as credit card, debit, or checks. I would not offer the cash payment option. Rosemary not offering the cash option will alleviate the temptation of a manager stealing cash. Accounts should also be reconciled daily. Rosemary should install cameras in the facility and a safe. Lastly, I think she should evaluate the salary of her manager and instructors to make certain that she is competitive with other fitness facilities. If she is not, then may she should offer a performance motivator such as a bonus.
Please join StudyMode to read the full document