Monthly Archives: August 2014

3 Tips Respond to Crisis Looms Conditions Business

financial managementDoes it rain storms, floods, mass power outages, or earthquake, all the distractions on the course of the company’s business could make it out of business sooner or later if it is not anticipated apt. Respond effectively to disasters often provide a significant difference between what could be termed as a “distraction” and a “disaster”.

Here are 3 tips that you can use when it comes to facing a business crisis in its path.

1. Think about what happens: Too many business leaders who act without assessing the situation and look at it first. Find exactly what was going on and what is the cause.

2. Act be agile: Do not wait until all the data has been collected in front of you. Once you have an adequate understanding of his precarious situation, begin taking action immediately. Do not act rashly. It will only make people anxious. Act with speed and focus.

3. Adapt: Do not get hung up on one strategy alone. Conditions will change and new information will appear and give you a new understanding. Be prepared to change strategies and steps taken if absolutely necessary.

Practical Financial Management To Start A Business

financial for businessThe financial system is one of the most important design today. An effort will be well when the system of financial and accounting smooth, precise and arranged neatly.

Likewise, when we are going to start a business or a business, planning a good financial system will give a huge impact when business is already running and over the business or businesses we will look also whether the financial system that we were already well prepared or yet. More The obvious again, whether or not our financial system will look good or the cash flow of the business in which we live

Financial management is concerned with the overall activity of the effort to raise funds and use those funds. If we look from the functionality, financial management is a way how to get the funds and use the funds effectively and efficiently in order to achieve the intended purpose. Financial management functions can be divided into two, namely to set use funds (investment) and to arrange to meet the needs of funds (funding)

The function of regulating the use of funds, including the planning and control in the use of property, whether smooth or fixed assets. Minimize the use of funds will directly determine the size level benefits arising from the use of the funds or of the investment returns. As for meeting the needs of funding (funding), it is important to get the funds if required at a minimal cost and conditions – favorable terms and, of course, the results obtained from the funding must be used efficiently.

All funding has been obtained that in the future will determine the amount of capital the company to start a small business. Capital itself is divided into 2 Equity Capital Active and Passive.

1. Active Capital is activity use of funds or property to invest in various assets, either smooth or fixed assets. Active capital is divided into 2 active capital the lancer and capital remain active.

Current assets are capital assets are exhausted in a single turnover in the production process, and the turnover is in the short term (generally less than one year).

Capital assets are assets that are not durable consumables (such as the soil, on which it established a factory building) or gradually – gradually depleted (eg buildings – factory buildings, vehicles – vehicles, equipment – equipment, and others – others) participated in the production process.

2. While passive capital activity to obtain financial resources, both internal and external sources of funds of the company.

The Importance of Preparation Funding

Preparing funding should also be done carefully because it will affect the cash flow of our new business for the future. Some of the points that we need to consider are:

1. Determine the length of Break Event Point (BEP)

When we are just starting a business, of course, the financial account we will not show any benefit we generate because the amount of capital we should spend to start a business. Hence, we should target how long it’s our business reaches break-even point or a turnover.

2. Determine the sales target

Determining the sales target, especially the first 3 months, is useful so that we can predict and take into account the amount of operating expenses that we must bear in early business running until the sale to cover the cost of business operations even make a profit.

3. Determine the amount of funds for capital

Furthermore, when we have determined sales targets, we need to do is take into account the funds we have to cover the costs – operating costs to be borne by our business during business we have not reached the break-even point. The new business will certainly not directly generate sales and profits can cover the costs of doing business, therefore it is important we prepare fund our business operations during the sale we have not been able to close the existing cost.

Not infrequently, the businessman had just started his business failure, the following are some of the causes of business failure be related business with the financial arrangements are:

1. Spending too much capital.

As already mentioned at the beginning of the conversation, that the use of capital should be done as efficiently as possible. During the early stages of business development, we will likely be met with capital. Perform filter and prioritize and avoid costly mistakes that are not necessary. Poor financial planning, mismanagement of funds or spending budget is a common cause of business failure

2. Do not spend money wisely.

The first thing we need to know the main rules of business is money spawned money. Sometimes you spend money to make money in other words, we make investments to spend big to get funding or money so Kalil fold greater than the investment. For example, to get marketing advice (if we do not have a lot of experience in the world of marketing practitioners), we have to hire an expert or have a marketing strategy or a marketing seminar or workshop.

As an initial exercise for someone who wants to start to open a business and start a business is to start arranging finance personal finance. The key is how committed we discipline ourselves to make a personal financial statement and organize our personal finances. If this is established, it will make it easier for us when it will be applied in the business world

5 Does This Apply To Your Business Bankable

bankableMost of the problems young businesses is the difficulty of obtaining capital from banks. Actually, it is nothing to worry if you can convince the bank and always trustworthy. You can do this by continuing to maintain the integrity of the banks that provide capital must be maintained. Because if it ever failed at a bank in the capital will be difficult to apply for other banks.

Typically, the bank has a special division in the finance SME and new venture. However, banks can not finance a new business running less than two years.

In general, banks are implementing the prudential banking principles aimed at securing funds to be disbursed as loans to prospective borrowers to get back on schedule and predetermined nominal.

There are many factors on which the banks to assess the feasibility of prospective borrowers are grouped into five major and called 5C.


Personal touch with the debtor or the debtor’s decision makers to form a business entity. Character assessment is closely related to the reputation of borrowers in the community and his track record among businessmen or parties often establish relationships with them, whether it includes a prospective borrower can be trusted or not and so forth.

Another thing that is also considered the bank to the category of character is a commitment that built, business records such as suppliers, customers and banking history. Banks will look at whether the business debtor has a history of troubled loans or not.


Associated with the debtor’s ability to provide their own capital in a project or business. Banks can not provide 100 percent financing to businesses that make capital. Debtor must have a self-financing or equity capital that can be derived from paid-in capital or accumulated profits into capital.

Capital include analyzing the composition of ownership, who is the most dominant and who steward the capital. This is considered important because by knowing someone who controls the capital, the bank can figure out how to run a business continuity in the future.


Related to the capacity or the ability of borrowers to manage and develop their business so that he is able to repay the loan in accordance with the schedule and the amount has been determined.

Capacity here is also related to the capacity of business such as sales revenue, cost structure, cash flow, the velocity of the bill, the cost to income and so forth.


Related to the ability of borrowers in the face of changing environmental conditions, both concerning the condition of the economy and the social and political conditions, in which the business or project is located.

This condition is also associated with licensing. For example, for the micro, the permit can be derived from the village or district, and so on.


Dealing with the assurance that the source of financing keystone in the repayment of the financed project or business. Divided into two types of warranties that guarantee tangible and intangible. Warranty intangibles such equipment, machinery, vehicles, buildings, land and so on, while the intangible include personal or corporate guarantees and so on.

Six Considerations Brand Your Business

brandingYou’ve prepared everything to start a new business, but there is something less. You have not yet determined the exact business name. Although simple, the business name of a big impact on your business trip.

Here are some considerations that you need to look at before deciding on a business name.

1. What do you want to achieve from the business?

A name can separate you from the competition and shows the image of your business. Should you already know your brand position before giving it a name. Who is your target and how to position your business name is a major consideration.

2. What is the name of a business that would limit?

Afterwards, think about whether it would restrict the name of your business into one area. Because who knows, when your business grows, you want to have several fields under one company. If this is your long-term goals, then think of a more universal name.

3. What name has been in accordance with the business?

Consider also whether you choose a name that suits your business or if a name that makes sense. Unique names, such as Halo, may be easy to remember but this method is not always successful in all areas of business. No problem if you want a unique name, as long as the business is still in line with your wake.

4. Is the name easy to remember?

The shorter the name, the more memorable. Names with two syllables are the best. Also avoid acronyms that sometimes there is no meaning for some people. In addition, think about whether the name can be easily spelled, pronounced by the people, and sounds good. When determining the identity of a company or product, a name that is simple and easy is the most excellent.

5. What would you have in mind when consumers hear the name?

Once you find a few names, then think again about what the consumer response about the name. You could ask the people closest to and made ​​a small survey. Ask their opinions and what’s on their minds after hearing the name. Remember, the first impression is the best way to get consumers.

6. What is the name that has special meaning for you?

Sometimes there are people who give the business name because it has a special meaning, such as the child’s name, parents’ names, or even names in certain languages ​​that sounds unique and has its own meaning. If the name is in line with the philosophy of your business, it is possible that the name fit.