In numerous cases, we can say that companies follow
the same pattern of domestic finance management. Just as many people do not set
aside personal money for a time of need, many companies also maintain this behaviour.
A behaviour that obviously reflects the
mismanagement of entrepreneurs when it comes to saving resources and knowing
how to maximize them.
If you're also in this group, it's time to turn the
tables and start planning your company's future. In this article by John Labunski , see tips to
learn how to plan your business financial reserve!
What is the
corporate financial reserve?
In summary, the corporate financial reserve is an
amount, in cash, that must be saved, or rather: invested. And, preferably,
these investments should occur in short-term and more liquid investments.
Thus, your company can count on this financial
resource when you need it most and quickly. In fact, it is the possibility of
quick rescue that allows companies to be safe in financial emergencies.
Booking in some type of application has two
advantages. First, your money does not stop at savings, which currently have a
monthly income of less than 0.50%.
Second, it prevents business managers from using
all the profit with superfluous expenses that will not benefit the business.
For example, with investments in machinery and labor for the company to grow
the operation.
Why have a
reservation for your company?
The simplest and most direct answer is: because you
will never know when you will need to save your company from some difficulty.
During the pandemic period, we saw many businesses
close their doors because they were unable to keep operations running.
In fact, the pandemic generated an economic crisis
and negatively impacted all market niches.
But the question is: if all the companies that
ceased to exist had a financial reserve, would they need to close their
activities and even file for bankruptcy?
Therefore, corporate financial reserve is not a
luxury, it is a necessity!
How to book
then?
First, you need to rely on your sense of
organization and financial planning. It is not possible to have a reserve of
money if you do not know what your business's fixed and variable expenses are.
Then, keep this monthly expense data in a spread
sheet or management system. In addition, cash flow control must be efficient.
Thus, you identify how much your company sells and profits monthly.
Knowing how much your business makes a net profit,
think about the margin (percentage) you want to invest in investments. But it
is important to remember that, starting from the investment, try to “forget”
that this money exists.
Only redeem it in an emergency, never to pay personal
bills or do risky business.
In addition, be faithful to your planning and, if
necessary, count on the experience of John Labunski to assist you in all
these steps.
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