What is financial Management?
Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise.
Business finance Management is very important Part in any small or Big Business, Without Proper Finance Management, Your Business Will be fail miserable.
Why Finance Management?
1. It will increase Your Organization’s Growth
2. Will Provide Economic Stability
3. Will help you take Critical Decisions
4. It will Provide Profitability to your Business
5. Help you to understand the Market
6. Will decrease Your Business Cost.
How to start Business with “No Money”
1. Whatever resources you have, Start with that.
2. Use Your Network
3. Invest only in instruments, where you don’t regret to lose.
4. Explore Limited Capital Business
5. Make Proper Business Plan
6. Utilize Your Resources.
What are the Options of Funding?
1. Bootstrap – self Funding
2. Crowd Funding
3. Angle Investments
4. Venture Capitalists
5. Micro Finance
6. Sarkari Hogans and Loans.
Accounting
1. Understand the Basics of Accounting
2. Keep Your Personal and Business Finances Different
3. Keep Tracking of all Transactions
4. Decide the Accounting Method
1. Cash Related Method
2. Accurate Accounting Method.
Cash Flow Management
Cash Flow Management is the process of monitoring, analyzing, and optimizing the net amount of cash receipts minus cash expenses.
How to Know Your Cash Flow?
1. Positive Cash Flow
2. Negative Cash Flow
3. Break- even Cash Flow
Types of cash flow
1. Operating Cash Flow
2. Investing Cash Flow
3. Financing Cash Flow
Cash Flow is Oxygen for Your Business
Three Documents are very Important for any company.
1. Balance Sheet
The term balance sheet refers to a financial statement that reports a company’s assets, liabilities, and shareholder equity at a specific point in time.
2. Income Statement
The income statement focuses on the revenue, expenses, gains, and losses of a company during a particular period.
3. Cash flow Statements
A cash flow statement is a statement that comprises the cash inflows and also outflows of the company operations.
Cost Reduction – Art of Saving Business
Cost reduction is the process of decreasing a company’s expenses to maximize profits.
1. Review all Your Expense
2. Pay Bills on Time
3. Focus on savings
4. Use Digital Marketing
5. Make Your Employees More Productive
6. Virtual Meetings
7. Take Help from Expert Freelancer
8. Outsource Service.
3 Major Problems for all types of Business
1. Credit Trap
2. Cash Flow Management
3. Finance and Funding.
Hence, proper financial management can lead your business to be successful & on the other side, bad financial mazement can leave your business in ruins.
