GLEN WAKEMAN’S IDEAS ON HOW TO FIGHT FINANCIAL CRISIS IN NEW BUSINESS
These are problems faced by new businesses in relation to finance. Financial management is one of the first things to plan effectively when starting a new business and according to business expert Glen Wakeman failure to do so is the first step to the financial crisis. There’re some financial risks and crisis that are typical in new business and can be managed.
Underestimating business expenses is a serious problem for new businesses. Glen suggests always keeping some cash for some emergencies like unexpected bills, marketing, or adding some assets like a computer. He is a big believer in having a financial cushion, just in case an emergency arises. This helps new businesses avoid a potentially fatal financial episode.
Overestimating cash flow coming into a new business is just as dangerous as underestimating expenses. To help in avoiding a financial crisis, it’s good to be conservative when estimating the cash from sales. An expert in business says that you should be aware that completing sales does not guarantee the use of cash but it depends on when the collection is done. At times a new business owner might discouraged because the influx of cash is low and because customer turnout low and growing. However, it requires patience to responsibly manage spending and not overestimating cash flow. This will help lead to sustainable growth in the future.
Financial liquidity is the life blood of any business. Glen believes in the importance of keeping track of your liquidity as a new business owner in order to avoid a potential financial crisis. Always have a access to your financial institution and ensure that you have a track of all transactions related to your business. Losing track of business financial transactions will lead to a giant crisis that might ultimately cause business failure or bankruptcy. As Glen Wakeman says “Don’t wait until the last minute to solve financial problems”, always solve the problems when they occur.
Having an in depth knowledge of all financial matters in a business will assist in solving a financial crisis. Being reliable, committed and having a firm understanding of how cash is managed in a business will play a large role in the all future success.