Though many of us have learned the art through studies and also in theory, practical application is something that we are failing at. Just imagine, we have got our salary and what does happen to it, by the 10th of the month? Well, all our commitments and expenses play havoc, and finally, the account balance drops drastically.
Well, all are facing the same situation? Not at all!! There are people who save in the least salary they get and are now becoming millionaires of the era!! How is it possible for them, not for others?
They are dedicated and determined, to save the last penny they get and invest it smartly so that money grows money!! Just like how the people who believed and invested in bitcoins, the worlds first digital currency are now millionaires, in just a span of 5-7 years!! You need to be disciplined and educated about the happenings in the world and save a little to invest in such bigger changes and reap benefits.
Well, its never too late to invest on crypto. Save your money, find the best platform, we refer the crypto VIP Club software that is easy to use and hassle-free, to start investing and trading on crypto, you can see your money grow in less time!
Coming back to the topic, let’s give you some insight into managing your finances in a business, and if it’s a start-up we are sure you wouldn’t be earning great, yet financial management is mandatory so that you have enough for the days when the business is dry and rocky.
Budgeting of the cash:
Budgeting is essential here. You need to calculate the exact figures of expense, income so that you can balance the inflow and outflow. Get the figures of the bills payable to suppliers, anticipated bills to you, the date of payments and debts if any, the EMI payable and all others. having a clear idea is always best, as it gives you a picture of what is happening with money.
Detailed look to cash flow:
Write down the cash flow detailed, so that you can know where the cash is flowing and where is it blocked. In case you have overheads that is taking too much of money, you can jot down their expenses and try looking into it, the same applies to logistics as well. Cost of the raw materials, goods and so on, will hurt the sales price and for pure competition price change won’t help.
Keep a tab on credit to customers:
Never lend credit more than you can take, as you have your own commitments, even if it means losing the business.