Monday, February 2, 2009

Business Money Management Tips: Handling Your Money in Business

Bam Aquino's Start Up show never fails to surprise me. Every episode is a goldmine of great business tips and advice from great business experts . I'm pretty sure that the show generates a lot of interest from millions of "money-minder" Filipinos who have been dreaming of running their very own businesses.

Last January 16, 2009, Bam Aquino interviewed Mr. Eduard Francisco, the President of Finex, to talk about Money Management. (I still have to post the whole interview; can't do it right now because I'm officially without a working computer; I'm still saving for a brand new one - my old one already "died" weeks ago.) :-(

Here are some of the more important points mentioned during the interview:

1. In a crisis, investors are not looking at the profitability of a company, but it's ability to generate cash.

2. Back to basics: Make sure that you manage your receivables; balance your books; pay your suppliers on time; update your inventory.

3. Many businesses fold due to poor cash flow management. Always have a financial back up. (I have to remember this one - very very important)

4. If you have a successful business, you may want to plow back all your earnings back into the company to make it stronger.

5. If you have some retained earnings, you can put in in safe investments.

6. The key to a successful business enterprise is having a good business plan and executing it well.

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