6 Essential Tips for Entrepreneurs to Grow and Manage Wealth
There’s perhaps nothing more liberating than having an enterprise of your own, operating in an industry of your choice and having the autonomy to make key financial decisions. While establishing such an enterprise from scratch has its own trials and triumphs, sustaining it and expanding it with time is another journey an entrepreneur should be prepared for. A study by NBCS reveals that only 40% of small businesses end up yielding a profit.
On the bright side, a thorough understanding of finances and investments and lucrative financial strategies can help entrepreneurs to scale up in their ventures successfully. Here are some finance management and wealth generation tips that can help entrepreneurs sustain and grow:
Have specific, concrete financial goals
One of the first steps to growing as an entrepreneur is to have concrete financial objectives with regard to one’s enterprise. These goals should have specific details about how one plans to generate and grow their wealth slowly and steadily, in line with key business goals. For example, if the long-term goal is to build a franchise, one should have all the essential details about this plan, including number of franchises one might open, the franchisees to connect with, the nitty gritty of the total cost involved in setting up and running a franchise, etc. With such details, you can set up concrete financial objectives and a definite direction in which to proceed.
Know your numbers
As an entrepreneur, knowing your cash flow thoroughly can single-handedly help you ascend in your journey. To begin with, it is imperative to familiarize yourself with key financial terms and concepts, such as EBITDA, net revenue, net asset value, collaterals, capital gain, and liabilities. You must know exactly how to calculate these values, so that you are aware of the cash inflows and outflows and the total profits earned or losses incurred in the company.
Create a well-planned investment and wealth generation strategy
Knowing what assets to invest in as a company and at what point to go public is another essential aspect of growing as an entrepreneur. To go public, one should wait until there is really a need to raise funds, when one has successfully registered with the SEBI and has met all the requirements and guidelines, and after the entrepreneur has sought guidance from an expert team of underwriters or investment bankers
Network with the right people
Good networking is one of the cornerstones of a successful business venture. The more like-minded entrepreneurs you interact with, the more are your chances of lucrative mergers, acquisitions, and partnerships. Such long-term collaborations can help one generate wealth, align with business goals, and become incredibly successful in the long run.
Set up the right team
A business’s workforce is its backbone, and finding the right professionals can go a long way in building a successful, business-driven enterprise. Setting up a conducive work environment, adopting the right recruitment strategies, and knowing what areas of expertise are required to grow the business are essential in this process. So, setting up a team of proficient professionals should be a part of one’s initial business plan and strategy.
Adapt to advancing financial technology
The world of FinTech has expanded like never before, in India as well as internationally. Adapting to financial technology and being up-to-date with the latest advancements is crucial in establishing a successful business. Using a supply chain finance management app can help entrepreneurs manage aspects like invoicing, collaborating with stakeholders, and managing payables and receivables with ease.
Moreover, FinTech platforms secured by cloud are safe, ensuring that confidential business details are protected at all times. They also have user-friendly interfaces and allow businesspersons the autonomy to use treasury or bank funds at an invoice level, based on their requirements.
Zuron is committed to providing budding entrepreneurs, MSMEs, and businesses with the right FinTech platform to manage and grow their wealth effectively over time. Connect with us to know more about our services and begin your finance management digitization journey!
