The management of a business is based on anticipating and trying to predict even the unpredictable.
Errors can easily occur during your journey.
We propose you to list the 5 mistakes that you should not make.
UNDERESTIMATE YOUR WORKING CAPITAL REQUIREMENT
In the business world, there is a fundamental rule that must be respected.
You have to spend money to be able to win .
It becomes essential to calculate the working capital requirement .
Many people tend to neglect this point and find themselves in a very uncomfortable situation.
You will always need to review your working capital requirements.
NEGLECTING PAYMENT DELAYS OR CANCELLATIONS
Contingencies are commonplace in the business world, so you always have to prepare for the worst.
Payment delays or cancellations are part of this lot of unexpected events.
If the situation arises, then you must notify your banker.
On the one hand, you will be able to establish a climate of trust with this one and, on the other hand, search with him for adapted solutions.
POORLY CHOOSE YOUR MEANS OF FINANCING
Any financing committed by your company must be the subject of a thorough study.
Whether it is short-term, medium-term or long-term financing, you will undoubtedly have to study them to check your available funds and take the necessary measures to avoid jeopardizing the cash flow of your company.
CONFUSE YOUR TURNOVER AND YOUR PROFITABILITY
For too long considered the top goal of entrepreneurs, turnover is certainly not the only thing that matters in a company.
The regularity of your turnover does not exclude the possibility that your business is in danger.
To overcome this problem, you must then perform monthly monitoring of your activity while establishing comparisons.
NEGLECTING TO CONSTANTLY UPDATE YOUR CASH FLOW PLAN
Monthly, weekly and even daily monitoring of your cash flow plan is of utmost importance.
This is the only way to check that your business is running smoothly.
These few basic mistakes can be very expensive for your business.
It is essential to avoid them. You now have key elements to not compromise the sustainability of your business, do you see others?
