Learn the importance of training your organizational and control skills when managing a business.
There are few things that business owners are more reluctant to work on than financial planning . On the one hand, because it seems extremely complicated and, on the other, because many find it more useful to devote their efforts to other tasks.
Planning and controlling a company's finances involves freight forwarders brokers email lists predicting what financial resources it will have, how and where to allocate them, and what is the most effective system to make them profitable. All of this is an extremely important exercise and, therefore, it is not advisable to set it aside. In addition, today there are methods and tools that simplify it enormously.
Start of marked textTWEET IT! Does financial planning seem like something from another planet to you? We explain how to cultivate it with simple and intuitive advice that is accessible to anyone.End of marked text
It seems difficult, but it is not.
However, not everything is as difficult as it seems . A company that makes a budget for a client already has some knowledge of financial planning. It must establish the resources needed to serve the client and set a profit margin so that the company makes a profit.
Imagine that, in addition to calculating a budget for each operation, one is estimated for the entire organization for a given period of time. A forecast will have to be made of the expenses necessary to develop the activity and the expected income to support it and make money.
For an entrepreneur, the words planning and finance seem to pose a complex challenge. This is understandable when your knowledge profile focuses on other areas of the business.
What is control?
Let's continue with the example of a budget for a client. Suppose there are deviations from the forecast. There may be difficulties in:
the availability of resources (materials, labor, etc.),
changes in expected costs,
greater or lesser needs for resource consumption,
unanticipated operational bottlenecks .
unexpected findings…
Naturally, the entrepreneur will have to adapt to reality. He will have to implement corrective measures . Sometimes this will have an impact on the customer and other times the threat or opportunity will become an internal impact.
You can understand control from two points of view that appear in the dictionary of the Royal Spanish Academy. In the first meaning, you will see that it is a checking activity : you analyze the results and compare them with what was planned. The fifth meaning tells you that control is the regulation of a system. In short, it is about acting to correct deviations from what you have planned and improve your management.
Control of financial resources
An essential factor to take into account is the control of financial resources . In particular, attention must be focused on the day-to-day management of the treasury .
Money is an asset that you need to work efficiently. Less liquidity causes difficulties, but having too much money affects profitability. Every penny of liquidity prevents you from investing in your business. Regulate your treasury to maintain balance.
