Post by fiweka1494 on Feb 27, 2024 5:16:43 GMT
You know when we stop and think: “I wish I had the experience and awareness I have today, when I was 20 years old” or, “how I wish I knew that when I was starting out”. Well, this article is intended to make you reflect on this, but this time, in relation to your business. Although the idea here is not to judge what you should have done and didn't do but - yes - to learn, doing things differently from now on, right? After all, who has never stumbled into a moment of financial disorganization due to inexperience or poorly made decisions? Learning from mistakes is essential to avoid repeating them. If you are just starting out and want to act correctly from the beginning, this text will show you what you should not do in order to keep your business afloat. 1. Not separating personal finances from company finances It is necessary to define and separate what belongs to the company and what belongs to the entrepreneur, as mixing portfolios can cause the business's cash flow to collapse.
Therefore, avoid taking amounts from the company's cash flow to cover personal expenses. In fact, to get around this situation, how about stipulating a pro-labore to “pay yourself”? By delimiting this fixed value, it becomes easier to separate the revenue of the legal entity from the individual and maintain control of the company - especially when we talk about individual micro-entrepreneurs. 2. Not updating the cash register as soon as any amount comes in or goes out Writing down every value that enters and leaves Business Owner Phone Numbers List the company's finances is essential to maintain an updated cash flow and make decision-making more assertive, after all, they must be taken based on real numbers. Financial control begins from the moment all transactions are recorded, regardless of the monetary value of the transaction - the cash balance at the end of the day must be accurate. 3. Counting on payments that have not yet been made Making purchases or investing in the company's infrastructure are just a few examples of what not to do without having the resources planned for the month on hand. Making investments considering values not yet accounted for can be irresponsible, apparently harmless, but with many consequences.
After all, it is part of the business reality that some customers may be late and, therefore, the amount previously recorded does not arrive on the scheduled date, disorganizing the monthly planning. Therefore, be aware of the impulse to create financial commitments by relying on payments that are not yet available in the business cash flow. And remember: the disorganization caused by mistakes like this, in addition to the others mentioned in this article, can put the small business owner in a big debt snowball. 4. Not having control over the company's expenses and income It is very important that you take a moment and list the fixed and variable expenses, as well as the expected income for the month, making updates whenever necessary (entering new income and expenses). 5. Control cash flow manually Every business that controls cash flow manually runs the risk of suffering financial consequences, because the error mentioned in item 2 makes this control even more vulnerable. Whether it's forgetfulness or even the difficulty of manually closing the cash register, one thing is certain: the use of applications or management and billing systems facilitates the small business owner's control work and solves financial problems resulting from the errors mentioned in this article.
Therefore, avoid taking amounts from the company's cash flow to cover personal expenses. In fact, to get around this situation, how about stipulating a pro-labore to “pay yourself”? By delimiting this fixed value, it becomes easier to separate the revenue of the legal entity from the individual and maintain control of the company - especially when we talk about individual micro-entrepreneurs. 2. Not updating the cash register as soon as any amount comes in or goes out Writing down every value that enters and leaves Business Owner Phone Numbers List the company's finances is essential to maintain an updated cash flow and make decision-making more assertive, after all, they must be taken based on real numbers. Financial control begins from the moment all transactions are recorded, regardless of the monetary value of the transaction - the cash balance at the end of the day must be accurate. 3. Counting on payments that have not yet been made Making purchases or investing in the company's infrastructure are just a few examples of what not to do without having the resources planned for the month on hand. Making investments considering values not yet accounted for can be irresponsible, apparently harmless, but with many consequences.
After all, it is part of the business reality that some customers may be late and, therefore, the amount previously recorded does not arrive on the scheduled date, disorganizing the monthly planning. Therefore, be aware of the impulse to create financial commitments by relying on payments that are not yet available in the business cash flow. And remember: the disorganization caused by mistakes like this, in addition to the others mentioned in this article, can put the small business owner in a big debt snowball. 4. Not having control over the company's expenses and income It is very important that you take a moment and list the fixed and variable expenses, as well as the expected income for the month, making updates whenever necessary (entering new income and expenses). 5. Control cash flow manually Every business that controls cash flow manually runs the risk of suffering financial consequences, because the error mentioned in item 2 makes this control even more vulnerable. Whether it's forgetfulness or even the difficulty of manually closing the cash register, one thing is certain: the use of applications or management and billing systems facilitates the small business owner's control work and solves financial problems resulting from the errors mentioned in this article.