Business capital is the funds needed to establish a business to achieve the goals to be achieved. When you first set up a business, maybe you often experience difficulties in the finance department. As a result you are required to apply for a loan with the bank.
If you succeed in getting a loan, of course indirectly requires to be more careful in managing the business. Wrong in managing, does not rule out the possibility that you actually experience problems and lose money.
Not a few entrepreneurs who are unable to manage business finances, leading to bankruptcy. This is why you need to be required to be able to pay special attention to the finances of the business run by you. So that the business will run and be profitable, here are some techniques to turn on business capital that you can follow, here are the techniques:
1. A special book on financial records.
In order for the financial business that you run smoothly, it is necessary to include all financial records in a special book. This book is usually called a cash book in which there is a recapitulation of income and expenditure for needs that are urgent or not. By recording all cash flows, this can make it easier for you to check the money in and out of the business that has been run. Besides, you are also easier to take actions based on the financial condition of the business.
2. The use of loan funds in addition to business, you must avoid.
For those of you who want to manage finances, you can avoid using loan funds for needs other than business. Return to your initial intention when applying for a loan, where the money you borrow is for business needs, not fun. Conversely, if we use the loan money for consumptive needs, it does not rule out the possibility that we will face a bigger problem until bankruptcy.
3. Money from the business for development
The function of the cash book you must have, in order to determine the amount of profit earned from running a business. Next, you can play profits to grow your business in addition to paying the loan installments in progress. For example, with the funds that you get from the business profits, we can open a new branch, or you can also buy new equipment to support the business you are running so that it becomes more advanced.
4. Loan funds are used to increase business productivity
What you can try to manage business finances that have been run, is to use loan funds to increase productivity. One example, by spending a portion of the funds that you have for promotional purposes, so that many people know the existence of your business. In the end, the money that you spend on this expenditure post can increase your profits doubled, so the business that you have run is growing rapidly and more advanced.
5. Funding with personal finance must be separated.
Not a few people have difficulty sorting out business funds, with personal finance. This is further aggravated by irregular financial management. The real key lies in how much commitment and discipline we have. By having commitment and discipline, you can sort out personal matters with business matters, so you won't experience financial problems in the future.
6. Some business funds are allocated to repay loan installments
The next function of the cash book is by recording income, at least it can estimate whether you can already pay the business capital loan bill that is running or not. You can allocate a portion of the income for capital obtained from creditors. You also need to be more disciplined in managing your finances, so that you don't pay late bills that can lead to more interest on loans.
7. Don't compare competitors with your business
Although it sounds simple, but in fact by comparing the business that you have with competitors does not solve financial problems. You need to pay attention, every business that is run has a different pattern. But if you see too much of the competitor's strengths compared to developing the business being undertaken, it is a fatal mistake for you. That is, consistent and disciplined is your main capital in developing a business to be more advanced and rapidly developing. Happy activities, good luck always...