When it comes to business the first and the foremost thing you need is a good plan along with capital. Without these two things none of the business can achieve success. Even if you have these things and you are not able to manage your finances properly you cannot succeed. Any entrepreneur whether young or old they need to know how to manage their finances (money) in a proper way. To any entrepreneur the key to success lies in the money management skills. Paying employees, purchasing inventory, managing accounts all these need to be done with care along with a proper idea to maintain a proper cash flow. Along with the cash flow being a business head it’s your responsibility only to have some savings as well for the business so that you when your business needs some fund or faces any bad face in that situation you can manage that.
Money Management Tips for Young Entrepreneurs
Make a Budget for Your Business and Stick to It
When it comes to money saving and money management for anything on any scale whether a home or a big business budget is the most important thing which should be made and followed strictly. When you have a budget that means you have proper plan for your finance i.e. where you have to spend? How much you have to spend? And where to save?
Set Your Goals
Goal is the most important thing when you want to achieve something. If you have a goal than only you can work accordingly to achieve it. And when it comes to business, business goals are very important and it needs to be set by you being an owner. In the beginning don’t go for bigger goals. Start month wise, spend accordingly and wisely. After sometime when you start achieving your monthly goals then start making bigger goals like for 4 months then 8 and then for a year. While setting a goal it’s very important to keep in mind that your finances will play a major role to achieve your goals, how much you are going to spend will always decide how much you will achieve.
Always have a Legal Adviser for Your Business
Even though you have money management skill that is not enough. Being a businessman there will be many places where you have to give taxes and all. Being a good citizen of India it’s your duty to pay the taxes but being a businessman you have to take care of our business also and you should try to save taxes where ever you can. By hiring a professional legal adviser this can be done in a better way as being a common people we lack in those ideas which professionals will have.
Save for Time of Need
In business, ups and downs happen all the time. As prevention is always better than cure, the only thing we can do is, be prepared for the bad phase as well. Try to save every month as much as you can. Even the financial advisors will suggest you to save at least 10% of your annual income but this is also not enough if you dream to become rich. The another advantage of savings is that it will help you a lot in your downs. The money you save today can be utilized when you will not have money for running your business or wherever you go out of fund tomorrow.
Always File and Pay Your Taxes on Time
For many businessmen it happens that they are so busy in their business that they forget to pay the taxes on time. Being an Indian citizen this is a crime. You should always be strict about your taxes and should pay them timely. Not on time with taxes always ends up with paying penalties in this way anyhow you be paying more than your taxes so, it better to avoid penalties and be on time with your taxes.
Always Collect Debts
Being in a business many a times this happens that some of the client or customer will not pay you on time and their debt will keep on increasing. For running a successful business it is very important that you should try to collect the debts with every client. So that there can be a smooth flow of cash and money within your company and business.
Keep System and Software Updated
Many businessmen don’t keep professional accountant. Although to manage the company’s finance it is very important that the account should be manage by a professional only. If you don’t have an accountant then at least keep some updated system software so that you can you can manage your account there yourself.
Keep Your Expenses well below Your Income
Spending all your earning in not at all a good thing. When you are in a business that too a business owner then saving is even more important and difficult task too. Suppose your monthly earning is suppose 5 lakhs. But the fact is you can’t say that this 5 lakhs is income because there are many things which you have to do with this money, such as paying your staff, purchasing inventory, paying different bills and taxes too. After all these things whatever money is left with you that will be your income. Another important fact is that you cannot spend all your earning even in these things. You should always keep some amount of money with you for your personal expenses as well as for your business. Open a bank account for savings and deposit thereon monthly basis. this will surely help you to grow.
Youth is the best part of one’s life in which you can give shape to your future. For some it is the time to enjoy and have fun whereas for some it is the time to motivate themselves, set goals and achieve them. It is the best time to work on your dreams and make them true. Being an entrepreneur in young age is a great thing and if you are among those young entrepreneur hope our tips will help you to be even more successful.