Many times due to inexperience or lack of knowledge at the beginning of our business career we make mistakes, mismanagement and investments that trigger an inevitable and systematic fall of your income. To prevent this situation Egao Consulting presents 6 interesting tips on finance.
- Separate business finances from personal finances: Your business expenses MUST NOT be associated with your personal account, having everything mixed together makes it difficult to control and account for what your business is really producing.
- Learn to differentiate an expense from an investment: The acquisition of a debt comprises an economic imbalance if it is not related to your business, for example: buying a new vehicle and contracting a monthly debt is an expense, if on the other hand the vehicle was acquired for commercial use and offer deliveries which will mean an increase of capital, it was surely an investment, since it helps to pay the debt by generating income for additional services.
- Stick to the budget: Prepare flexible budgets where you understand each and every one of the monthly expenses and follow it, so you will have a fixed monthly calculation of what you need to collect.
- Learn to organize yourself, save your invoices, classify them, assume your own accounting, the goal is to master the administration of your business, there are many books, coachings for entrepreneurs, online courses to learn how to manage your finances, make your own investments and project yourself economically in the future without the need to hire accounting services.
- Have a contingency fund: Avoid living to the day, generate constant unnecessary expenses, give yourself the opportunity to save, we are not exempt to the unforeseen, as the word indicates are not contemplated in the budget and can mean the cessation of activities of your business, for example: if you work with transport and your work tool in this case the vehicle suffers a damage would mean not being able to continue providing services and not receive income until it is in perfect condition, for this reason it is always good to have a backup for these eventualities.
- Cheap” is expensive: Many times to save money we hire unqualified labor, your company deserves the best, when investing do it with professionals, avoid wasting time and more money in the future.
