Business finance

Business Financial journey

Simple meaning of finance:-. The amount which requires to start and grow a business.

:- As we know that finance is backbone of every business.

   So ,  it's very important to understand how to manage finance problem in business and in our daily life. If you understand about finance then you easily make your business financial journey smooth.

  

Because finance management is a very important skill. It help us to use money in right way. 

If we have skill to manage finance then we easily solve money problem of  business life. 

         *Business finance*

In every business  you face finance problem when you want to start a own business . finance is also require when we want to grow(expand) our business on large level . 

We can also say that finance is life blood  of business journey. 

Because we need to circulate money in our business continuously.

 If we stop the circulation of money in our business then our business not survive in this competitive business environment. 

  

This competitive business environment always want that  type of business who can  continuously inject life blood means finance.

 

So , it's very important to know how to do optimization of our finance in correct way because if we know correct method of optimization of finance then we can start and grow our business in very minimum finance.

          Tips for business finance. 

@ For managing finance in better way we need to do financial planning.

Financial planning include both short term as well as long term planning.

 

Short term planning is usually in the form of annul budgets.

Long term planning takes in the form of form of capital budget.

If we do finance planning in way of short term as well as long term then we are already aware for finance need of future .

For example :- Ramu is a owner of LED bulb manufacturing company and he already decided to buy machine when the demand of LED bulbs increasing.

So , Ramu already plan for finance by cut of bad expenses here bad expenses which are not meaning full  at this time time. Which are not essential expenses Ramu cut them and it help Ramu to buy a manufacturing machine by planning in advance .

If  we plan in advance about our goal ,then we select only important thing which are essential at this time.

Ramu do same thing he cut off all the irrelevant expenses.

If Ramu not plan in advance then he waste  the money  in non relevant thing which he generate by operating activities.

  

By planning of finance in advance Ramu have a enough time for to search a potential investors to invest in his business.

Importance of financial planning in business.

1*. To ensure availability of of adequate funds at right time .Ramu do same thing  and he ensure about availability fund .

2*. To see that the firm does not raise funds unnecessarily. Ramu apply this concept also in his business. so ,he enjoying best best financial journey.

3*It results in prepration of plan for future does new project can be undertaken smoothly.

4* It serves as the basis of financial control . the management at time to ensure utilisation of fund in tune with the financial plans. It help to make your financial journey smooth.

Following are the task which comes under financial planning:-

# Determination of financial objective.

#Formulation of financial policy and rules.

#Forecasting the needs of finance.

#Developing alternative source of finance.

#selection of best alternative.

#implementing financial plans and policies. 

 In above example of Ramu apply all task of financial planning .

Due to implementing of all task of financial planning Ramu not face finance problem in his business.

Long term financial planning.

Ramu do short term financial planning but it also work In long term financial planning.if he apply same  concept which he apply in short term financial planning.

Long term financial planning regards as growth of business. 

In this type of planning we need huge finance compare to short term planning.

I hope you well understood about finance.

*Now the time to know about some knowledge able fact.

Facts of finance by google and Yahoo:-

1#  Indra Gandhi is first woman , which work as finance minister of india. She work 346 days as finance minister.

2# current finance minister  is a nirmla  sitharaman . 

Contact no:-011- 23092810, 23093868, 011-23092510, 23094399, 011-23093289Fax.

Email ID :- fmo@nic.in

3# The word finance also emerged in 15th century.

It means 'to end ' and ' to pay'.

To end means to end the debt.

4# Eugene f . Fama is modern father of finance.

I hope you enjoy this fact . If you enjoy the fact then please share to your social media friends.

#Business Finance  journey#

finance , Google finance

              Yahoo Finance, financial times , financial express, finance ministry of India, finance importance, business finance.

For more information visit on this website:-

   1~How to manage personal finance of Home

2 ~Business management skill importance in 2021

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