Carolina is a young woman who attends university, she is studying Administration precisely because her dream is to have her own business; she reads everything she can get her hands on about marketing and sales, and she loves listening to or watching online chats with the world's most famous entrepreneurs.
Last year, still in the midst of a pandemic, he decided to create his own business. Before doing so, many people warned her that owning her own business is risky, that she would have to work long hours without a steady salary, and that there would be difficult clients who would stress her out for no apparent reason.
Still, she decided to go all out and started promoting her products online, and now she earns enough money to pay for her studies and help her parents. However, Caro found that few people know how to be financially sound when running a business.
Thinking of people like Carolina, today we want to share 5 keys to creating a business that is economically profitable and sustainable over time.
Five recommendations for healthy finances in your business
Carry a budget.
It is very necessary to establish a control mechanism for our income and expenses. We must know for sure how much we earn, how much we spend and on what and if there is a healthy relationship between the two. It may seem like a very basic tip, but too many people don't know where their money comes from or where it goes each month.
Open an emergency fund.
When you start receiving earnings, it is important to have a certain amount in the bank, saved so that it can be accessed at any time, if necessary. That fund is available for emergencies only and can help us keep the business afloat for a month or two of low income.
Hire good consultants.
If money allows it, hire good advisers. Expert people who help you optimize the profitability of the business. For example, a specialist in Digital Marketing and an excellent accountant, with experience in the sector in which your company operates. It is important to stop seeing this type of accompaniment as an unnecessary expense and start valuing it as an investment. Having a good accountant will avoid legal and tax problems and will always protect your money within the limits of the Law.
Calculate your borrowing capacity.
If you already have your budget, you have an investment fund and you are advised by a good accountant, it is time to calculate your debt capacity to ensure that you can face a credit that will allow you to take your business to the next level. For example, a loan can be used to acquire more technology, buy a store or expand your stock. But getting into debt "silly" is never a good idea.
Research the financial market.
If you have already decided to acquire a loan to strengthen your business, do not go with the first financial institution that appears to you. Everyone will tell you that they offer you the best conditions, but you will have to take time, investigate, compare and seek advice to make the best decision.
En Coopealianza, being a cooperative with a social purpose, we can help you acquire a business credit with agile procedures and few requirements.
We have:
- Banking Funds for Development
- Revolutive Lines of Credit
- Direct Credit
- Invoice Discount
request it here and we will attend you immediately to advise you.