Organizing Business Finances
Introduction
Starting a business requires pulling all the resources necessary together as per the requirements of the business. The entrepreneur invests these resources with the positivity that the business will thrive. However, running a business is not always as simple as it may sound. It requires management skills in utilizing resources and managing costs and all the expenses that may arise. Among the most important resources that an entrepreneur needs to handle is finances. According to Alexander Djerassi, who is an entrepreneur, has some characteristics that every entrepreneur should have to organize and handle finances in any business.
How to handle business finances
Being future-oriented.
According to him, being futuristic about the business gives a sense of focus. This is because the business has set objectives and goals that it aims to achieve, and all the efforts are put into achieving these goals. This helps the entrepreneur understand the industry and analyze the risks and benefits associated with the investment line. This is crucial as the identified risks and the associated costs can be managed. Subsequently, benefits such as identifying opportunities help maximize the returns from the capital invested.
Being innovative and creative.
According to Alexander Djerassi, a good entrepreneur usually has to think outside the box and be open to new ideas or running the business. This creativity is an important character as it brings forth a more economical and easy way of running any business. His may include value addition, methods of production, and marketing strategies, among others. With this, an entrepreneur has a competitive advantage in the market and promotes the brand name. This comes along with some related financial benefits such as reducing costs related to advertisements and marketing, attracting new customers, and still retaining the existing ones by meeting their tastes and preferences. This ensures that the business makes more sales which increases the net profit and at the same time reduces the costs that can be incurred.
Being Resourceful
Djerassi always requires an entrepreneur to embrace efficiency in running their business. This means incorporating all the techniques in the business world, be it the technology or the trending strategy in marketing. This means that to ensure that the business can adapt to the changes in the market, it should have all the resources necessary to counter the setbacks that may arise. According to him, running a business is not smooth, and there may be foreseen or unforeseen uncertainties that an entrepreneur needs to be aware of. Therefore handling finances well entails channeling the resources to areas with promising returns. At the same time, when one is resourceful and aware of what is required to avoid all these setbacks, there is reduced or no wastage which would increase the costs resulting in financial problems.
Therefore, as an entrepreneur, one needs to have traits to thrive in the industry. This includes being open-minded, optimistic, persistent and ready to learn and change. With this, one can develop a discipline in managing all the resources, including finances, which enhances the business’s sustainability and adaptability.
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