7 Tips For Managing Your Business Well
Becoming an entrepreneur means taking on many roles. In addition to selling, producing, managing, communicating, you will need to know how to manage your business. Management is not only about “accounting” strictly speaking, but about organizing your human, material and financial resources.
Be in control of Business Management
Everything that gets measured gets better. It is for this reason that you must be in control from the start of your activity. This will allow you to understand how your business works, to avoid unpleasant surprises (tax deadlines, supplier payments, etc.) and to know the different levers to develop your business.
The good control of the management of your activity allows you to make the best decisions, and to achieve your objectives defined in your business plan. Total outsourcing is not recommended.
Keep your accounts up to date
Do not consider this as a constraint, but rather as an aid to managing your business. Even if your accountant will be present, it is important that you do not lose interest in the subject. This will allow you to dialogue with him freely on the analysis of the performance of the activity, the preparation of your budgetary expenses, and the state of your cash flow…
Set a schedule of deadlines
Depending on the tax regime you choose, you will have a minimum of formalities to complete:
- Accounting records of your receipts and purchases,
- Tax declarations (VAT, BIC, BNC, IS, CFE, various taxes, etc.),
- Payslips, social declarations… if you are an employer,
- At least annual accounts, an AGO and a management report…
- Be vigilant about your payment delays
- Not anticipating payment discrepancies between your customers and suppliers, this can be fatal for the company!
This is extremely important data for the proper management of your cash flow. Because a growing company, which does not control its cash flow, can put the key on the door quickly.
In order to deal with possible financial problems, you can create cash discounts, offer a larger overdraft with your bank, or build up a working capital requirement more adequate to your activity.
Avoiding following up on your quotes and invoices
Be reactive and proactive! When the customer’s needs are clear and precise, the quote must be sent within 48 hours, with a period of validity. Create a relationship with your interlocutor (decision maker), to know if he has received the estimate and that you are at his disposal if he has questions. Then, a follow-up at the end of the period of validity of the estimate will have to be carried out.
Make yourself known to the accounting referent of your customers and suppliers, in order to streamline the relationship and in particular during reminders and receipt of invoices.
Regarding the latter, establish a schedule for monitoring customer payments in order to enforce payment of their invoice.
Control your production costs
It is important to know in detail your cost price and to make sure that your margin will be sufficient to cover your external expenses. This will allow you to have a smoother negotiation with your suppliers, and especially not to sell at a loss!
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