Financial management is one of the main challenges faced by small business owners. Many times, the lack of organization and control over available resources can lead to difficulties that compromise the growth and even the survival of the business. However, when well executed, good financial management can be the differentiator that transforms a regional company into a success story
According to a survey conducted by Sebrae, 50% of small businesses close their doors before completing five years of operation, and poor financial management is pointed out as one of the main causes. The study reveals that many entrepreneurs do not separate personal finances from business finances, besides not making adequate plans for the future. These data show that, without efficient control, even promising businesses may not reach their full potential
Samuel Modesto, business management specialist and business mentor, reinforces the importance of a strategic vision for financial success. Many entrepreneurs focus only on revenue and forget that real profit depends on strict control of expenses. Furthermore, it is essential to have a plan that includes reserves for unforeseen events and future investments. Without this, "any growth can be temporary", explain. He also emphasizes that a lack of attention to details such as cash flow and fixed costs can lead to misguided decisions, such cuts in essential areas or unnecessary investments
Financial planning as a basis for strategic decisions
One of the first steps for efficient financial management is planning. Set clear goals, both in the short and long term, helps to direct resources more assertively. For example, a small business that wants to expand its operations can start with a plan to reduce operational costs, such as renegotiating contracts with suppliers or adopting technologies that optimize processes
Another important point is the separation between personal and business finances. Many entrepreneurs make the mistake of using the company's cash to cover personal expenses, what can cause a financial imbalance. Creating a separate account for the business and establishing a fixed salary are simple measures, but that make all the difference
Cash control and its impact on daily life
Cash flow management is another essential tool for a company's financial health. Knowing exactly how much comes in and goes out of the cash register allows for identifying spending patterns, avoid waste and make more informed decisions.
ToSamuel Modesto, this control must be daily. Cash flow cannot be neglected. It is he who will show whether the company is generating profit or just surviving. Furthermore, with detailed control, "it is possible to identify opportunities for improvement and investment", affirms
A practical example is that of a small bakery that, when analyzing your cash flow, realize that part of your products is being wasted due to poor inventory management. With adjustments in the purchasing and production process, the company is able to reduce costs and increase its profit margin
The importance of savings and investments
Finally, the creation of a financial reserve is a step that many small businesses ignore, but can be decisive in times of crisis. Having an emergency fund ensures that the company can face unforeseen events, how do you fare in sales or cost increases, without compromising your operations. Furthermore, part of the profits should be reinvested in the business, be it in infrastructure, team training or expansion
Samuel Modesto concludes with a piece of advice for entrepreneurs. Financial management is not just about numbers, but about vision and discipline. "Those who can see beyond the present and plan carefully are better prepared to face the challenges and seize the opportunities that arise along the way", concludes
