Financial Management - avoiding debt

The key objectives of financial management would be to create wealth for the business, generate cash, and provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested. Here are a few pointers:

1.      Build a Cash Reserve – You should have your personal cash in reserves before you start your business. Profit may not come in right away so you need to keep some cash aside in case you need to use it for paying taxes.

2.      Debt-income Ratio – Your chances of getting a business loan are reduced by debt, even if you have the projected income to repay them. If you are able to focus on repaying all your personal debt prior to opening a business or as early as just the beginning of the business, then try your best to do so.

3.      Avoid Over investing – Avoid over investing on stuff including, computers, and inventory overload. You have to keep your mind directed at building a good product and customer experience.

4.      Separate Personal Finances from Business Finances – By doing this it not only reduces your personal liability but also gives your business credibility. It also helps manage your taxes, bills and other payments.

5.      Speak to a Finance Expert – Getting an experts advice like an accountant or a tax advisor will help you with making mistakes with tax regulations.

6.      Pay yourself – You should never pay yourself a salary. You might get caught up in the profit in the beginning of your business but you need to set aside money that will be just for you separating personal finances and business finances.

Avi Werde

Head Quarters , 231 Rogers Ave, Brooklyn, NY, 11225, United States

Avi started his business life at a very young age, which has allowed him to explore many industries. After finishing his studies as a music student he went on to other areas in the hospitality industry expanding his knowledge and experience to the point that he felt unsatisfied by the restraints and slow progressions of working for another leading him to create his company ECS (Event Connection Source). This brought Avi national and international attention as the world was to experience their first large scale Jewish wedding expo, opening doors that he has been yearning to open. He has since been involved with projects such as Concerts, Galas, Art Shows, Art installations, Fashion shows, managing event spaces, birthdays, product launches, corporate events, Festival management, parties, event marketing, PR, the works.