|
flevyblog
The Flevy Blog covers Business Strategies, Business Theories, & Business Stories.
|
Editor's Note: Take a look at our featured best practice, Cost Reduction Opportunities (across Value Chain) (24-slide PowerPoint presentation). Though there are multiple levers to maximizing an organization's profitability, costs are the most directly controllable by any organization. Profitability is being challenged by increased costs, stagnated revenue growth, and increased capital costs in today's economic climate. Therefore, a [read more]
* * * *
When it comes to a personal business, every entrepreneur knows that regulating the company’s finances is the most important – although often the most complex –element of the endeavor. Many companies do not regulate their business’s finances effectively, which can result in bankruptcy and debt, even if your company is making money. Here are a few tips to help you keep your company’s finances in order, your business afloat, and your profits soaring ever-higher.
1. Learn about Business Finance Every Week
Regulating your business’s finances can be confusing at the start, and while you are building up an independent business, you may feel like there is no time at the end of a busy day to study. By setting yourself a weekly schedule, you will be able to manage your time more effectively and, as a result, you can dedicate 20 minutes every week to learning about how to regulate your business’s finances –it is important to see the time spent studying as an investment to your business. There are also an array of apps that you can download to help you manage your time more effectively, and you will discover that finding some spare time to study every week will not damage your business.
2. Monitor Your Company’s Performance
The first step to taking control of your company’s finances is knowing exactly how much revenue the business is taking –and exactly how much is going out – because tracking your company’s net worth will help to improve your finances instantaneously. Once you are completely knowledgeable about your business’s assets, then you will be able to manage more complex elements of the business more effectively, for example managing your company’s inventory. Once you analyze how your business is running financially, you will be able to shape its successes, and potential difficulties, much more easily.
3. Synergize Your Business
Syncing your businesses services will save you a lot of time and will help you to manage the financial side with a lot more ease. Consider investing in pay-per-month cloud-based services which automatically recognize your account on multiple different devices, saving you the time you would have taken to download them individually. Professional services including sellercloud.com are a perfect solution to simplifying how your business runs. When your money is going to fewer companies, you will be able to manage your inventory with ease and therefore invest your assets more effectively.
4. Utilize Strategies from Your Personal Life
Although it is imperative for any successful business that you separate personal and business finances, it is beneficial if you utilize the methods that you have been using over the past few years to regulate your own personal finances and bring those skills to your business. There is no reason for business finances to be different from working out the incomings and outgoings of your own personal account –it will just be on a more complex scale. This is an extremely tip to follow because it is essentially just common sense.
By practicing organization, learning from personal experience and analyzing current trends, it is simple to regulate a business’s finances effectively. If you follow the four tips provided above, you’ll be well-placed to profit from a well-shaped business going forward.
You can download in-depth presentations on Cost Reduction and 100s of management topics from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.
For even more best practices available on Flevy, have a look at our top 100 lists:
These best practices are of the same as those leveraged by top-tier management consulting firms, like McKinsey, BCG, Bain, and Accenture. Improve the growth and efficiency of your organization by utilizing these best practice frameworks, templates, and tools. Most were developed by seasoned executives and consultants with over 20+ years of experience.
