Money is a sensitive and important factor that is indispensable in trading and trading activities. We always try to find a way to manage the cash flow very closely and not to cause losses, affecting business operations. So how are ways to manage money in sales and business? Let’s also 100startupideas.com find out in this article offline!
- 0.1 IS MONEY MANAGEMENT IMPORTANT? WHY MANAGE MONEY IN SALES AND BUSINESS?
- 0.2 HOW TO MANAGE MONEY IN SALES AND BUSINESS
- 0.3 1, SEPARATE MONEY FROM BUSINESS ACTIVITIES AND PERSONAL MONEY
- 0.4 2, MANAGING MONEY BY ITEM
- 0.5 3, MANAGE MONEY BY SPECIFIC TIME
- 0.6 4, PLANNING FOR FORECASTING ACTIVITIES, THE FLOW OF MONEY IN THE FUTURE
- 0.7 5, MANAGE BACKUP MONEY
- 0.8 6, SET FUTURE SALES TARGETS
- 0.9 7, MANAGEMENT OF LIABILITIES AND LIABILITIES
- 0.10 8, DO NOT ASSIGN MONEY MANAGEMENT TO EMPLOYEES ON A REGULAR BASIS
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IS MONEY MANAGEMENT IMPORTANT? WHY MANAGE MONEY IN SALES AND BUSINESS?
Money is not only a business goal but also a factor to ensure the operation of the entire system. When the cash flow has changes or problems will lead to the operation of other parts affected. The money lost will cause the revenue to be reduced, business operations are at a loss. Therefore, managing money is very important, we need to always observe and find the best way to manage money.
HOW TO MANAGE MONEY IN SALES AND BUSINESS
Knowing that managing money is important but there are ways to help you manage your money well. Some suggestions below will help you find ways to manage money in your sales and business activities.
1, SEPARATE MONEY FROM BUSINESS ACTIVITIES AND PERSONAL MONEY
Many people have a habit of using personal money with trading business, leading to the end of the month, they cannot control all the expenses of individuals who use store money or personal money to invest in. , purchase equipment.
It is necessary to separate business and personal money to be able to control and calculate the revenue and expenditure clearly.
2, MANAGING MONEY BY ITEM
In sales, business has a lot of items, items to spend, must invest as money to buy equipment, buy raw materials, money to prevent risks, proceeds, … So, manage money by each account for easier control, identification and calculation. Item-based money management helps create stability and consistency in operations. When you look at the amount of each item, you can also assess how your income and investment have been made, since it has the most appropriate adjustments to avoid losses.
3, MANAGE MONEY BY SPECIFIC TIME
In a day, or in a certain time period, there will be different revenue and expenses. To be able to specifically manage the loss, you can manage money by setting up a revenue and expenditure table, generated daily to track it in detail. This method not only helps you control the money day by day, but also can compare the revenue and expenditure activities of each day, each month, each time in this year compared to other years. In addition, managing money over a specific time can help you calculate in advance how much money you need to invest in the future to be able to prepare in time, or with the current situation, Next month, how much money will be needed to cover losses and continue to operate.
To manage money over time, you can set up a simple money management table on the Excel and get started.
4, PLANNING FOR FORECASTING ACTIVITIES, THE FLOW OF MONEY IN THE FUTURE
When starting a business, make a plan to predict the operation of the store and company in the future. Forecasts of future expenditures, how much revenue can be earned, what can be generated, can turn around revenue to offset the costs for the following months? When will the capital be recovered? The prediction will help you determine the flow of money in the future, may not match reality because there will be many fluctuations, but through the forecast plan, you can grasp the situation. how and how my money works.
This is also one of the ways to help you manage money in sales and business. So keep it in mind when you start planning your money management.
5, MANAGE BACKUP MONEY
One of the reasons for failure and bankruptcy of many shops, companies and businesses is the subjective preparation without a reserve to prevent risks. When the operation is in trouble, it will not be able to turn the money in time to continue the operation, then go bankrupt. Therefore, when starting a business operation, you need to prepare and manage your backup money very well to prevent possible risks. This is also one of the items that need to be well managed in the management of a store or a company or enterprise’s money.
6, SET FUTURE SALES TARGETS
Setting up future sales goals helps you set a goal to try to make, and let you know how much you have to spend in the future to achieve that goal, and with That revenue is enough to offset the cost. Based on your sales goals, you will prepare the amount to be used in the future and consider, evaluate, find ways to maintain operations and achieve the goals set.
Money management in sales and business is not just managing money at the present time, but managing money from the past, present and future so that when viewed, the owner can know How does the movement and profitability of my money take place, what points should be continued to be promoted and what should be limited to improve it better, limit losses.
7, MANAGEMENT OF LIABILITIES AND LIABILITIES
In business, debits occur regularly every day. So to manage your cash flow well, you need to capture and control your liabilities and your customers’ debt on a regular basis. Debt management helps you understand how your cash flow works, and find ways to pay your debts and collect debt from customers and partners to continue the cycle of money.
8, DO NOT ASSIGN MONEY MANAGEMENT TO EMPLOYEES ON A REGULAR BASIS
Many owners who do not have the time should assign all management and calculation of sales and expenditures to their employees, leading to inadequate control of revenue and costs, and losses in sales, business.
Therefore, in order to manage money well in sales and business, manage or assign jobs to trusted employees but still monitor them regularly to monitor the operation and minimize losses. worth it.
The movement of money is very important to the existence and development of a store, company or business. The management of good money will help you limit the losses, unreasonable costs and control the revenue and operation of your business unit. Each way of managing money will have certain effects and there are also potential gaps. So, to manage your money well, you can learn and combine some ways together to bring the best effect. Above are the sharing on how to manage money in sales and business shared by 100startupideas.com. Hope, this article helps you.
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