Avoid the highest corporate finance 7 key mistakes in business survival.
If you start committing these business financing mistakes too often, and will greatly reduce any chance you have for business success in the long run.
Is the key to understanding the causes and meaning of all this you are able to make better decisions.
Financing errors >>> (1) - No monthly bookkeeping.
Whatever the size of your business, inaccurate record keeping creates all sorts of issues related to cash flow, planning and decision making in business.
While everything has a price, and accounting services at low prices compared to the cost of most other works will.
Once you reach the back of the bookkeeping process, and the cost usually goes down or becomes more profitable because there is no wasted effort in the registration of all commercial activities.
In itself, this error and we tend to lead to all other one way or another, and should be avoided at all costs.
Financing errors >>> (2) - are not the expected cash flows.
Bookkeeping does not create a significant lack of knowledge of where you are. Net cash provided does not create a lack of knowledge of where you go.
Besides the points, and businesses tend to stray further and further from its goals and wait for the crisis that forces a change in spending patterns monthly.
Even if you have an expected cash flows, we must be realistic.
There are a provincial level must be present, or they become meaningless in very short time.
Financing errors >>> (3) - insufficient working capital
No amount of record keeping to help you if you do not have enough working capital to function properly commercial.
This is the reason for the importance of creating cash flow accurately predicted before the start and access to, or expand a business.
Component are often completely ignored in working capital with the main objective is the shift of investment capital.
When this happens, and usually sees the liquidity crisis as soon as funds are sufficient for the management of sound through the normal sales cycle.
Financing errors >>> (4) - mismanagement of payment.
However, if you have a large working capital, forecasting and accounting in place, you prone to problems of liquidity management.
The result is the need to relax and deferral of payments that may come as a result.
This may be on the edge of a slippery slope.
I mean, if you do not know what causes the problem of cash flow in the first place, and by extending payments can help you dig a deeper hole.
The main objective is government financial transfers, and commercial payments, and payments by credit card.
Financing errors >>> (5) - poor credit management
There could be serious credit defer payments for two short periods of time and indefinitely.
First, the delay in payment of credit cards may be the most common way that both companies and individuals to destroy their credit.
Second, the record also NSF checks through the credit reporting business is another form of a black mark.
Third, if you put off paying a very long period, the creditor may make a judgment against you further damage your credit.
Fourth, when you apply for credit in the future, it may be in arrears of the government to carry an automatic by many lenders.
It gets worse.
Whenever you apply for credit, and credit inquiries are recorded on your credit report.
This can cause additional problems.
First, several queries can reduce the credit rating in general, you or degree.
Secondly, lenders tend to be less willing to extend credit to companies that have many demands on your credit card report it.
If you do not get into situations that you are short of cash for a limited period of time, and be sure to discuss the situation proactively with your creditors and negotiate payment terms that you can both live and who will not compromise your credit card.
Financing errors >>> (6) - registered non-profit
To begin work, and the most important thing you can do from the standpoint of financing is to obtain a profit as soon as possible.
Most lenders should see at least one year of profitable financial statements before they consider loan funds on the basis of the work force.
Prior profitability is reflected in the short term, based on corporate finance primarily on personal loans and credit worthiness.
For existing businesses, and the results should show the historical profitability of additional capital.
This measure is based on ability to pay the net income recorded for the work of an accountant certified by a third party.
In many cases, companies work with accountants to reduce corporate taxes to the extent possible, but also destroy or limit their ability to borrow in this process when the business net income is insufficient to service the additional debt .
Financing errors >>> (7) - No funding strategy
The appropriate financing strategy to create 1) funding to support the cash flow and future of society, 2) the timing of debt repayment that cash flow can service, and 3) in emergency funds needed to meet the needs of the work is planned or unique.
That sounds fine in principle, but it does not tend to be well practiced.
Why?
Because funding is largely unplanned and after the event a reality.
It seems once and everything else included, and work and try to find funding.
There are several reasons for this including: entrepreneurs are more marketing-oriented, people think easy to obtain financing when needed, and the impact of short-term deferral of financial issues are not as immediate other, and so on.
Whatever the reason, the absence of a funding strategy is actually my fault.
However, the significant funding strategy is not likely to exist in the case of one or more of six other errors exist.
This reinforces the point that all the mistakes listed are intertwined, and when they carry more than one, and the impact of the negative result can become exacerbated.
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