How to Manage Business Finance – Lately a lot of people who decide to build a business or small businesses. Many of them are business actors who are starting their own business for the first time. The success of a business or business really depends on how you manage it. With good management, the business will run well.
People who decide to build a business or business are teenagers. To help you get started, here are some ways to manage your business finances as well as recommendations for businesses that are suitable for teenagers.
How to Manage Business Finance
Make a Financial Record Book
In a business, finances must always be recorded. The point is to monitor all transactions that occur in the business. Record keeping will also reduce the risk of unreasonable expenses arising. No matter how small your business, there must still be financial records. It is used to record and provide proof of expenses and income made by your business.
Notes in the financial record book must be made in detail and orderly to facilitate the bookkeeping process. To help with this, you can sort the income and expenses in your records by transaction date and time.
Make a Budget Regularly
In addition to keeping track of your finances, you should make a budget for your business on a regular basis. Creating a budget serves to keep business expenses from blowing up and unnecessary expenses from occurring. Creating a budget can also increase the efficiency and financial stability of your business. In addition, with a budget, your business needs can also be met properly
Use Income to Grow Your Business
When your business gets big results or profits, it's a good idea to reinvest some of that money to grow your business. This income can be used to advance your business, not only for personal purposes. At least set aside 10% – 20% to grow your business.
Separate Business Money from Personal Money
Combining business money with personal money is a very bad idea. Even though your business is still relatively small, separating personal money and business money will maintain the stability of your finances and your business finances. This is because your needs and those of your business can be different. Do not let business capital be used for personal purposes and personal money used for business purposes. Use different accounts or places to keep your personal money and business money.
Insert Income for Emergency Fund
A good entrepreneur must be able to prepare himself and his business when in a state or emergency condition in business. We never know what will happen in the future. It could be that suddenly your business needs an injection of funds or is in an insecure position.
By setting up an emergency fund, you don't have to spend personal money to save your business. Preferably, this emergency fund has been prepared before starting a business. In addition, you must also manage and use this emergency fund wisely. If the situation can still be controlled without using an emergency fund, it is better to save these funds for situations that really need them in the future.
Also Read: What is Financial Literacy? Get to Know Its Benefits!
Business Recommendations for Teens
Thrift Shop
This quality used goods business can be run by a teenager in a fairly easy way, you know. You are also not required to rent a place or shop to start this business. Just provide a place to store your used clothes or by buying them at other stores that you can resell.
Products that you can sell on thrift shop including clothes, pants, shoes, bags, hats, and other accessories.
Coffee shop
In recent years, coffee shops or coffee shops have become very similar businesses. Young people's desire to hang out, relax, and do their jobs while enjoying good drinks encourages entrepreneurs to open their own coffee shops.
Well, if you do have the capital to build a coffee shop, don't be afraid to try it. Don't forget to learn the aspects of running a coffee shop business and to manage your finances well!
Food and Beverages Business
If you have a hobby of cooking, baking, or unique drinks, maybe opening a business selling food and drinks could be an option for you. Your hobby is fulfilled while making money is the dream of many people, you know! So don't be afraid to start now.
The capital needed is also not as big as you think, really. You can start on a small scale from home by utilizing communication technology and social media for your sales.
Those are ways to manage business finances and business recommendations for teenagers. Starting a business or business sometimes seems scary because failure is very possible. However, if you can manage your business finances well, of course it will be worth it. To help you manage your finances, the Whiz Financial App. has many features that can make it easier for you, you know!
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