Becoming an entrepreneur means taking on many roles. In addition to selling, producing, managing, and communicating, you will need to know how to manage your business. Management is not only about “accounting,” strictly speaking, but about organizing your human, material, and financial resources. Here cultivate advisors will guide you on business management:
Be An Actor In Your Business Management
Everything like Sales Process Optimization for example that gets measured gets better. For this reason, you must be in control from the start of your activity. This will allow you to understand how your business works, avoid unpleasant surprises (tax deadlines, supplier payments, etc.), and know the different levers to develop your business. Control of your activity management will help you make the best decisions and achieve the objectives defined in your business plan. Total outsourcing is not recommended.
Keep Your Accounts Up To Date
Do not consider this a constraint but rather as an aid to managing your business. Even if your accountant is present, you must maintain interest in the subject. This will allow you to dialogue with him freely on the analysis of the performance of the activity, the preparation of your budget forecasts, and the state of your cash flow.
Be Vigilant About Your Payment Delays
Expecting payment discrepancies between your customers and suppliers can be fatal for the company! This is extremely important data for the proper management of your cash flow. Because a growing company, which needs to control its cash flow, can go out of business quickly. To deal with possible financial problems, you can create a cash flow forecast, negotiate a larger overdraft with your bank, or build up an adequate working capital requirement.
Be Sure To Follow Up On Your Quotes And Invoices
Don’t hide in the ostrich because cash is the sinews of war for the company’s survival. On the contrary, be reactive and proactive! When the customer’s needs are clear and precise, the quote must be sent within 48 hours, with a period of validity. Create a relationship with your interlocutor (decision maker), know if he has received the estimate, and let him know that you are at his disposal if he has any questions. Follow this proposal: a follow-up at the end of the period of validity of the estimate will have to be carried out.
Make yourself known to the accounting referent of your customers and suppliers to streamline the relationship, particularly during reminders and receipt of invoices.
Concerning the latter, establish a schedule for monitoring customer payments to enforce payment of their invoice.
Control Your Production Costs
It is important to know your cost price in detail and ensure that your margin will be sufficient to cover your external expenses. This will allow you to negotiate more with your suppliers, especially not to sell at a loss!