Business Information

To arrange financial plan we should consider a few tips: Recalculate all your debts and divide between debt for private consumption and business. If your debts above the amount of 30% of total revenue this indicates that your finances are not healthy, take notes of total income that you received and your expenses for several months and look at the results.

Here you can see what expenditures are obligation such as transportation, monthly shopping, dining, etc. and have to be consider only at certain of time. Aim for how much you need and not exceed that aim. Begin to separate a sum of money for savings, in this case you also have to separate the personal savings of course for personal purposes and business profit. You must set your financial goals for both personal and business for example you plan to enjoy a vacation in the Bahamas three years ago.

And for business, you are planning to open 10 additional outlets within a period of three years. Separate between personal savings and business savings, create a different bank account. In fact, you can create multiple accounts for multiple purposes such as bank account A to plan vacations, B account for profit business, C for your children’s education funding accounts, D accounts for retirement funds etc..

Do not forget investing for retirement funds. Make a plan when you want to retire and count the living cost after retirement and how much you should save for the funds.

The placement of investment funds as a process of planning long-term goal can be done through various ways, either by doing it yourself or through a securities company or other financial / investment services companies. Involved in this way is as important as investing itself. Investing independently through a securities company (for example, shares transaction) requires not only adequate knowledge and information but also our time. If we have access to information but do not know how to use it, then that information does not provide any benefit.

Most people in the productive ages have insufficient time to invest by themselves for being too busy with work. If you insist to invest independently, without having knowledge, information, and sufficient time, then maybe you will get losses instead of having benefits. For that matter, we see the importance for individuals to recognize various investment strategies that are already known widely.

Buy and hold versus market timing, we generally recognize two ways for investing, which are buy-and-hold and market timing. The first way is to buy some alternative investment means and keep them for a long time. The wish is so that the magic of compound interest can be realized, thus providing an opportunity to give a big advantage in the long term. The key is consistency and long-term perspective.

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Every company requires real assets includes assets that are tangible and intangible, which the assets that are used to produce real goods and services. There are 2 (two) questions that must be answered by financial management that is related real assets investing. First is how much cash is required for the real assets investing. Second, the type of company’s investing assets.

This is the job for financial management, which is called investing decision. Investing decision is a decision to determine which types of real assets that should be taken over by a company. The success of financial management in taking investing decision is determined by the ability to choose the real assets that can bring high returns for the company.

After the financial management is able to select and determine the amount of cash that are needed for investing in real assets, then the next responsibility is to seek financial resources to finance this real assets investment or which is called financing decisions. Company’s financing policy requires the manager to identify the way to finance this new investment, which the alternative is to use retained earnings, allowance from debt instruments, and issuing new shares.

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