Post by muntahaislam222 on Feb 28, 2024 4:48:53 GMT
If a business wants to maintain and grow in the market , . After all, it is these resources that will guarantee new investments, launches and also the fulfillment of obligations with suppliers and creditors. But, while running out of money is one of the worst things that can happen to a business, many entrepreneurs make basic and unforgivable mistakes. Do you want to avoid your business going through this? So continue reading this post and discover the 1. Not having adequate information Firstly, when the company does not keep a cash flow record , for example, it does not understand how its movements happen and is also unable to make a forecast of the future that is likely to be assertive. On the other hand, there is also no point in holding information about which you have doubts about its reliability. If this is the case, decision making becomes more susceptible to errors and data analysis will not correspond to the reality of the business. This is the case, for example, of making a complete and continuous record of movements, creating an adequate base of information that can be used.
Letting finances become disorganized Likewise, it is not enough to have adequate information and ensure it is reliable if it is completely messed up. This is what happens when the record of movements does not separate inputs and outputs or purposes. When a business records an outflow in a month, the number may or may not be adequate — everything will depend on where that money went. Without this organization, it is impossible to identify bottlenecks and money Europe Mobile Number List drains. A business can spend R$20,000 per month, for example, and stay within budget, which would mean a good result. However, a more detailed analysis may show that, of this money, R$5,000 is going to a sector without need. In this case, without an organization of finances, management will not be able to find this value, losing the chance to save and become more competitive . It is therefore necessary to act in a standardized manner to achieve total organization of finances, which must be separated into categories and sectors. This facilitates analysis, offers the identification of opportunities and threats and increases the relevance of the information acquired.
Mix personal and business finances Speaking of messing up your finances, another very common mistake is mixing business and personal finances. Indeed, this lack of separation. And, in relation to personal money, this mixture can cause you to spend more than you should on the company, harming the business's profits . For corporate financial management, the effects are even more catastrophic. The first is that, when using company resources for personal expenses, you fail to make important investments for the business. Furthermore, with the entry and exit of resources unrelated to the company's processes and sectors, financial reports do not represent the exact reality. Thus, the financial analysis is seriously impaired. This can make the business appear to be in a better or worse situation than it actually is. Which leads to the error of unreliability — which, as said, disrupts the entire management process. 4. Not having a financial plan We know that, no matter how big it is, . Therefore, it is not possible to do everything at the same time, which requires prioritization. More important areas or more urgent situations need to receive resources first, leaving the remaining amounts for less important points.