business goal is to make money or to maximize profits. However, what if we run the business that never get the profit? Obviously we need to know all too well the financial management problems.
Financial management is one area in functional management within a company, who learned about the use of funds, obtain funds and distribution company operating results.
The main task of financial management include: decisions about investment, financing and operations of a company’s dividend distribution. In the usual financial problems faced is funding, costs (promotion and purchases), sales, profits, receivables, and investments.
In starting a business, ideas usually emerge. However, the business ideas that sometimes collide with the funding. Therefore the secret of success in financial management is the problem of funding. Some questions that will arise is where we can get the funds? Then how do we get it? How to set the funding? How can the advantages and disadvantages of each?
The secret of success related to financial management is funded by selecting the appropriate capital sources. One of them with debt, the second is the alias equity investment. To choose between equity and debt is by obtaining the appropriate funding source. For example we choice the bank that his term of credit is easy.
If we choose any equity, then choose the source of funds (the Bank) that the requirements are not burdensome. To that required creativity and good networking to obtain the appropriate funding source.
Supporting the success of financial management in this way is good preparation. Business proposals and feasibility studies should be prepared with excellence. So that investors and creditors are interested in distributing the money to us, and we are confident our business prospects.
Types of funding we can get if the source of equity funding through the Bank are:
1. Personal savings, this is the first place we saw when starting a business. May not be in the form of cash, but also something that we can be a capital uangkan business as homes and vehicles. We must be sure to prospectively whether or not our business.
2. Colleagues, relatives, and relatives who can serve as a source of funds. Place them as business partners. Roles and responsibilities of each must be clear.
3. Individual investors. Person who has the money on the Rp1-billion actually a lot. Personal like that can be utilized as a source of capital.
4. Companies with excess liquidity. When we have a network with foreign companies is better, because the system is lower interest rates than banks in Indonesia. Try a large-scale businesses as well, so others do not hesitate to channel funds to help our financial management.
5. Venture capital company. For example, capital management which helps small to medium-sized businesses, and take it off when the company grow big.
6. Go public or sell shares to the bourse. We can get a larger capital, with the risk faced obstacles, such as stocks we belong to someone else.
If we choose the source of the funds as loans, meaning assume a risk. However, equity also has the disadvantage that we must be prepared to share both the results and operational. In principle, the same between debt and equity, which we must be able to manage and had obtained financial management.