Don’t be Wrong! Here's How to Manage Business Fund

It is true that managing business finances is one of the challenges that business owners often face, especially if you are new to running a business or do not have a background in finance. In fact, regardless of the scale of the business you run, both MSMEs and enterprises, you can still face unstable financial conditions. To anticipate this, you need proper financial planning.

Make a business financial plan

Of course, to keep your business running smoothly, you can’t just make a financial plan without paying attention to the details. Instead, wise considerations are needed so that the financial plan is not only realistic, but also can be implemented in the long term. So, so that you can prepare business financial planning wisely, make sure to pay attention to the following things!

[Also read: 6 Challenges of the Digital Age Business Owners Face]

1. Plan business finances at the right time

Keep in mind that even though business owners need to prepare a budget plan, that doesn’t mean you can make plans without clear consideration. Remember, the financial plan is not determined based on the estimated sales that you will get later. Instead, you should look at the sales evaluation in the previous period. Through the Cashlez Reporting feature, you can find out the number of sales practically because every transaction will be recorded immediately.

2. Evaluate the business regularly

Maybe, you’ve heard that a business financial plan should be made on an annual basis. You may also be able to follow this method. However, be sure to also conduct business evaluations in the short term, for example every month or every two months. You see, there could be unforeseen circumstances that require you to change the business budget plan.

3. Cooperate with suppliers and use business services

If there is a solution that can make your business run more effectively, don’t hesitate to try it. One of them is the non-cash payment service from Cashlez Payment Gateway. Through one application, there are various types of payment options that customers can use. Besides being practical, Cashlez can also be a mainstay for business owners because it has obtained a license from Bank Indonesia.

[Also read: Getting to Know the Digital Economy and Tips for Using It]

4. Understand your business risks

Whatever type of business you run, of course, the business has risks that can affect the financial condition of the business. So, to anticipate these risks, you as a business owner need to prepare for short-term and long-term risks to the financial condition of their business. For example, if you run a fashion business, then you can consider the risks if there are new competitors that appear and offer more competitive prices.

5. Consider the sales cycle time

Although not all, there are many businesses that get a lot of demand at any given time period. Well, if you’re not getting a lot of demand, then that’s when you can make a plan to increase sales. Make a plan to understand your target customers and promote products in innovative and creative ways.

6. Pay attention to the time factor

Often, business owners don’t take time into account when they make a business financial plan. In fact, time is just as important as a business budget. When you make a financial plan, you also have to estimate whether the budget will meet your needs in a certain period of time or not.

If you estimate the use of the budget for business purposes, then you can more easily monitor the necessary financial conditions. So, the business that you run can be done smoothly so that later the business can grow and increase the amount of income. Conversely, without a business financial plan, you can spend more budget for your business.