Paano mag pa ikot ng pera sa business

[yanmae]

Tips naman po jan mga sis paano nyo pinapaikot ang pera sa mga business nyo.

[lexi_girl]

Hi sis! Here are tips that i use for my business:
1. Prioritize in paying your expenses: overhead, suppliers,  payroll etc. Your revolving fund should be always more than enough to cover these.       
2. Include yourself in the payroll. It should be just enough to cover your personal expenses. Live frugally especially when your just starting up. (Basta anything that you're gonna buy na not for the business you pay it from your salary.)
3. Loan ONLY when you are going to expand your business or when you're investing in equipment/things that you need for the business. Its always a bad idea to loan just to cover your expenses or to pay off another loan.(Because if you cant cover your expenses from your sales then it only means your not earning enough).
4. Credit card is a good thing only when you pay it in full amount every time. Installments are ok as long as its for an equipment/machine needed for the business.
5. Have a separate account for your savings from your revolving fund. If there's sobra in your revolving then set it aside to put in your savings. And not the other way around.
                                             

[aquacharly]

"PANO  PINAPAIKOT  ang pera sa business".....
That is:   How  do we MAXIMIZE use  of funds in the the business.... It is not enough pinaikot ikot lang basta.   

1st,  you don't want to take on more than you can afford to float,  mabibilaukan ka.
        So, limit your business volume in the early years to what your  equity (funds & other resources) can "afford" to take on.  Coz if you take on more than your working capital (taking into account your investment-to-cash collection cycle) can float -- you will be constrained to go into financing or, your business will flop if you can't get/get enough financing &/or collapse under the strain of financing charges.  So build up your business slowly but surely.

2nd,  avoid resorting to financing to fund your operations  unless it is seasonal or just bridge financing.  In short, minimize or avoid loans.  When the business cycle trims down your usual levels of operations & profitability,  the fixed obligation of financing charges makes your business vulnerable or incapable of seizing other opportunities.

3rd,  estimate your  operating/product requirements very well.  You must minimize tying up funds in inventories.

4th,  pay your suppliers promptly.  COD gives you leverage:  suppliers generally give discounts for prompt payers.  Eventually, coz your reputation as a prompt payer is established already:  suppliers will give you discounted prices on  30 days or more credit.  Suppliers' Credit is a big deal since your funds are freed to be used for other requirements.

5th.  Do not declare dividends until the level targeted for the business volume is reached .   Plow back profits into the business.  Build up your working capital, equipment or any other basic asset your business requires.

6th.  Mind your collections. That is, minimize your Accounts Receivables.    Sales not yet collected by you means funds that rightfully belong to you are not working for you since these are in somebody else's "pockets".   

7th.  Personal expenses must never be bankrolled by business funds.   You either draw a reasonable (not excessive/exploitative) salary, or have another business to fund your personal expenses.
AND even when you've grown your business as 1 of the top tax paying corporations, always always always exercise financial discipline.

8th.  Do things the Right Way. Cutting corners, or doing things "not totally legally"  will open you to shakedowns by corrupt govt/regulatory people later on.  Once they sniff you out, they will never leave you alone.   So corruption fees/expenses means less funds for your business, aside from business operations disruptions or cease-and-desist orders.