Are you aware that the first thing that will bring down your business is poor management? A lot of investors today are ready to put up a business—with great business ideas and enough capital to establish one. However, not everyone has the capacity to manage a business for real. As I’ve always mentioned, not all investments are for everybody. If you can’t manage a business properly, you won’t survive the industry for long. You will end up closing down your business. And to prevent that from happening, here’s my recommendation for those who have businesses or planning to put up one.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Stock Smarts Manila: March 14, 15, 21, 22 & 28, 2020
Stock Smarts Singapore: May 16 – 17, 2020
Stock Smarts New Zealand: June 6 – 7, 2020
Stock Smarts Sydney: July 11 – 12, 2020
Stock Smarts London: April 18 – 19, 2020
Knowledge is king, don’t forget about that. A business is like starting out your own investment in stocks. You have to be knowledgeable first before you make your first move. Since one of the major reasons why businesses close down is finance-related, you might want to focus more on your financial management. As you prepare the things you need to put up your business, remember to invest in learning financial management. If you can attend seminars, read books, and hire a coach, do it without hesitation. You must invest in knowledge before anything else.
Next to learning financial management is proper budget allocation. Once your business is running, you must emphasize the proper use of your cash and other financial resources. You should keep an eye on your expenses, rather than on your sales. This is still a part of the financial management you have to learn. Your expenses should not exceed your revenue unless you are operating in the first year. It’s okay to incur losses at the start of your business but you shouldn’t let it happen for 5 years or so. Your business needs to profit and one way you can do it is by practicing proper budget allocation.
Your business will surely survive the wear and tear of the economy if you will prepare contingency plans too. Contingency plans are meant to cater to future circumstances that you are not expecting to happen. Whether it’s an internal or external event, you have to make sure that your business is ready to face challenges. Even if you haven’t experienced facing events that can bring your business down, it’s still important to brainstorm what is likely to happen and what are the things that you must do. As early as now, prepare the contingency plans for your business.