The information contained in this post is aimed at all those people, managers, financial directors of small and medium enterprises that want to get a good business performance.
The business success of a company does not come only from the good service or that it lends, the administration and management of internal resources is a fundamental part of a correct operation.
In order to achieve all this, this post details valuable information to plan a good financial strategy for your business in this new year 2018.
2018 Financial Strategy Planning: Important Aspects
To plan the new financial strategy for your business in 2018, a multitude of factors come into play that all financial managers of small and medium enterprises must take into account:
Importance of financial decisions
Financial decisions are the key to any strategy. Around them, it will determine if the financial objectives are met or not. In addition, management and administration depend on all of them.
All financial decisions are intertwined with each other since, in many cases, they are in the chain and the good achievement of one, implies the good achievement of another and therefore, the good internal practice of money management to distribute it in such a way that the profit of the business is maximized.
A good product or service is not enough
Only with the good service or product is not the SME empowered, the person responsible for the finances must be able to take the appropriate financial strategies and, of course, to make a correct management of resources for the achievement of objectives.
The development of the company must be linked to the financial strategy of the business.
Accounting and finance hand
Accounting and finances go hand in hand. Let’s say that finance, as a concept, refers to the movements of money while accounting refers to the record of these movements.
A financial and accounting organization is essential to detect errors in the financial strategy and solve them in the future.
Normally in SMEs, the people in charge of these activities are not too many. An error that does not determine a reliable financial state of the company can lead to disastrous consequences and if it is not detected and crawled … you can incur sanctions and problems that would endanger the business.
Position in the market
The position in the market that SMEs hold is small compared to larger companies.
This is a sufficient reason to enhance the internal management of the company’s financial resources. The use of their own resources and the good administration of them can enhance this aspect.
If you do not take special care with internal management, you can reduce external positioning in the market.
Financing of SMEs for 2018
SMEs have always been very limited to acquire financing and develop their businesses. Generally, the source par excellence was banking, but the panorama changed as a result of the development of new technologies.
New financial alternatives have been developed that enable and facilitate life and business development for this type of company.
Currently, SMEs can opt for the development of a diversified financial strategy, an advantage that only large companies benefit from.
Alternative financial sources for SMEs in 2018
In the new year 2018, SMEs can be financed in many ways but then we present 3 of them whose foundation is based on the collaborative economy:
This innovative financing method is carried out through an investor, natural or legal person, who contributes capital to finance new projects or companies at any stage of creation. In addition to monetary contribution, you can also bring experience to new entrepreneurs in order to obtain a profit in the future.
The business angels adopt the role of “guide” so that the business is strengthened and therefore the benefit thrown for both parties. The counterpart to this type of investment is the high risk associated with it because a fall in the company is a fall for the investor.
Startups and SMEs are the main types of companies seeking this financing.
The investors finance the companies directly on their social capital, expanding it or not, in such a way that these investors become shareholding partners of the same.
They acquire ownership in the company, thus being an investment committed to the growth expected for the company.
It is one of the most consolidated financing alternatives among current companies and, on the investor’s side, it provides numerous opportunities to achieve an attractive profitability.
You can access this route through fully online platforms via Green Day Online, so it is a fast and convenient financing.
In conclusion, the main recommendation is to carry out a strategy of diversified financial financing so that the development of your business grows exponentially during this year 2018.