Here's how you can ensure long-term profitability by effectively managing your finances as an entrepreneur.

One constant battle is Cash flow management. Budgeting, think of it as a successful business plan, a budget empowers you to understand your income and expenses, allocate resources wisely, and prepare for the unexpected. The first step is tracking your income and expenses, identifying strengths and weaknesses of your cash flow. Once we understand where our money goes, we can allocate funds strategically. A budgeting app can be your trusty weapon, helping you track income, categorize expenses, and build a financial buffer for unforeseen circumstances. Take control of your financial narrative, and watch your creativity thrive!

Comece pequeno: Inicie seu negócio com o mínimo de recursos possível. Concentre-se em um produto ou serviço principal e expanda à medida que sua receita cresce. Faça um planejamento financeiro detalhado, Controle rigoroso de gastos, Evite dívidas desnecessárias, Faça marketing de baixo custo, Faça parcerias estratégicas, Venda online, Atendimento ao cliente excepcional, Reinvista os lucros, Educação contínua, Essas estratégias podem ajudar você a gerenciar suas finanças de maneira eficaz e garantir a lucratividade do seu negócio, mesmo com recursos limitados.

As an Accounting Professor that teaches basic financial management courses, most students, although apprehensive at first to take the class, discover through learning how to calculate their net worth, where they can begin to cut costs in order to manage their finances effectively and prepare themselves for retirement.

Absolument important. Sans oublier que tout commence par la stratégie et le planning en ligne avec la vision et la mission de l'entreprise. Faire la distinction nette entre ACTIFS et PASSIFS. Savoir ce qui vous rapporte de l'argent et ce qui vous fait perdre de l'argent pour assurer une bonne santé financière de votre entreprise

While diversity is key, a young business needs to focus on its core competency. Too many businesses fail because they try to expand into other areas and cause mission creep. Trying to be all things to all people will not work.

The whole notion of multiple income streams sounds great. First, you have to get one going and sustaining. And you need to be careful about spreading yourself too thin, unless you want to hire GMs for each business. This all depends on how big you want to be. I prefer one repeatable revenue stream from something you are really, really good at.

Alignment is key as it would ensure that it contributes to the organisation and to your business goals. The business you get involved in MUST contribute to your growth so you can continue to commit and excel

The solid point is to invest in something would give the business together with long term value and sustainable. To connect with that investment as value add up to diving the operation. Can be something passive would be even better.

Besides financial acumen (which includes budgeting, controlling costs, and understanding cash flow, mitigating risks, and investing and managing debts wisely with proper strategies), in my opinion, the key to long-lasting profits lies in good business contacts/relationships, strong business credibility (the trustworthiness and reliability of a company in the eyes of its stakeholders), and good human capital (with employees who are highly motivated, feel valued by the company, and are passionate about contributing to its success).Setting Up Emergency Funds and Regular Review and Adaptation of the Business with emerging needs and changes is crucial.

In my experience, monitoring cash flow is crucial for making informed business decisions. At ThinkOrbital, we implemented a robust system to track money. This system helped us anticipate cash shortages and surpluses, allowing for better planning and investment. For example, during a product development phase, having a clear view of our cash flow ensured we had enough funds to cover unexpected costs. Positive cash flow not only means making money but also having sufficient funds to support and grow the business sustainably.

Periodic performance review You should periodically review your performance versus your budget targets and take corrective measures for the hurdles in achieving your targets then adjust your next budgets. This is also called MBO cycle, Management By Objective setting.

In my experience, building a strong network is as crucial as financial management. At ThinkOrbital, our early success was heavily influenced by strategic partnerships and mentorships, which provided us with invaluable advice and resources. An example is when an advisor helped us navigate a funding round, leading to a successful investment that fueled our growth. I would add that fostering these relationships can provide long-term benefits beyond immediate financial gains, contributing to sustainable business development.

Formulate coherent and, most importantly, realistic short to medium term objectives that impact your long-term revenue goal. Be it market share increase, operational efficiency or customer retention, and periodically check that your decision making and budget is oriented towards those objectives. Look at your data, without it you are lost in the dark. Understand how your cash fuel is improving the KPIs you use to measure your objectives. Too many expenses or not having enough positive impact towards your KPI targets? Stir the wheel and look for alternatives. Change and adapt.

Regular Review And Control Profitability isn't a set-it-and-forget-it game. Regular reviews and control measures are the watchdogs of success. By constantly monitoring finances, performance, and market trends, you identify areas for improvement, course-correct as needed, and ensure your business stays on track for long-term financial health.