Tips for Better Business Financing

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Post on 19-Dec-2014

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Surely, youve heard stories of business failures due to mismanagement of finances. Though most entrepreneurs have what it takes to venture in the industry, not everybody faces the reality of handling the business budget. According to the report of ABN AMRO Commercial Finance, more than half of their respondents believe that SMEs feel like theyre not in control of their business financing affairs. Visit www.esquire.com.ph for more details about business finance.

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<ul><li> 1. Tips for BetterBusiness Financing{</li></ul> <p> 2. Surely, youve heard stories of business failuresdue to mismanagement of finances. Though most entrepreneurs have what it takesto venture in the industry, not everybody facesthe reality of handling the business budget. 3. According to the report of ABN AMROCommercial Finance, more than half of theirrespondents believe that SMEs feel like theyrenot in control of their business financing affairs. 4. What they dont know is that the more theydisregard this aspect of the business, the morethey increase the chance to fail miserably. 5. Running a business is just like sailing a ship.The captain must be prepared to conquer therough sails and do whatever means necessaryto survive. 6. This is the same with being an entrepreneur,you wont just let your business sink into doomwhen you encounter hurdles along the way.This is why one of the toughest aspects tohandle in business should not be overlooked -finance, that is. 7. So, to avoid failing miserablyin growing your businesswealth, here are some tips youneed to know to have a betterbusiness financing! 8. Finish your paperworkon time. 9. We all know how hectic it is to bean entrepreneur. You have to meetwith clients, suppliers, andemployees. You have to study andbe updated in the industry. Butwith all these, finances must notbe overlooked. Paying penaltiesfor missing tax deadlines does notmake for good business IQ. 10. Know your financialposition. 11. As part of the business, you should beaware of where your business is andwhere you envision it to be for thefollowing years. This will also includeyour financial targets and forecaststhroughout the operations. Setstandards: know how low can yourfinances get. Consider this as thefinancial limit and anything lower willlead to failure of your business. Thiswill especially be crucial should youdecide to get a loan for businessdevelopment because then, you haveto factor in loan service as part of yourallocation. 12. Monitor your financialprogress. 13. Following the step above, the nextstep will be monitoring yourprogress regularly. This should bepart of your job as the owner.Always review: How much moneyflows in and out of your business?Is your sales on a steady orsignificant increase? Is your cashflow fluctuating? Does yourfinancial position right now alignwith what you set in your businessplan? 14. Your personal finance isnot your businessfinance. 15. And vice versa. Yes, the money fromyour business bank account canalways come handy and you caneasily pay it after using yourpersonal money. But stop rightthere. If you dont want to end up ina complicated record of yourspending, just dont do it. Whats thesense of separating your personaland business bank accounts if youare only going to use itinterchangeably? 16. Befriend your accountant. 17. You are a business person becauseyou are not an accountant. You area business expert, the same way anaccountant got expertise inhandling finances. Makes sense?This is why no matter howtempting it is to cut costs andmake your finances a DIY thing,hiring somebody who knows howto manage finances and abide taxpolicies will be a more costeffective solution than to commitpenalties. 18. Treasure your records. 19. When you treasure something,it means you are going to keepit neat and clean. Maintainingyour financial recordsorganized and tidy can saveyou a whole lot of trouble whenthe time comes youll need tolook for something. Also, thisway you can easily see unpaidinvoices that will affect yourbusiness if it adds up. Well-keptcopies of checks, bills, andreceipts can also be of greathelp in determining the overallspending of your business. 20. Immediately addressproblems 21. Whats even better thanimmediately finding aresolution for a problem?Once you notice somethingoff with your operation,resolve it at once. Or youllrisk problems adding upover time and it will be moredifficult to address them. </p>