Proper business investment is proper financial management

You may hear about a business venture that went out of business and never prospered. At first there was a shortage of financing, then the dismissal of employees, and the end is the closure of the company. In the eyes of economics such an event is a nightmare. This would mean the loss of a job for many and poverty. In developing countries like Asia and Africa, many workers sacrifice leaving their families just to work abroad. Not all are successful; many even ruined their lives and families. One of the worst results of this is brain drain. A country lost its best workforce due to the economic depression.

Economic experts diagnosed the failure as financial mismanagement. The reason why a business failed is because the investors failed to use the financial resources properly for that purpose. In fact, there are banks, insurance companies and even government agencies that failed to allocate the funds for a suitable investment.

There are other businesses that went bankrupt due to the illegal practices of people in management through the mismanagement of funds. They fled with them the money that caused the firm to become extinct in the business arena. Not only the lack of business progress and the lack of stock holding, but also the greed of people’s concern is the reason why a business organization loses.

A businessman must be a good financial manager. He tries to make sure that he invests his money in the most profitable way. He discerns before entering into any business. One of the best attitudes that he possesses is to care not only about the state of the business but also about the welfare of the employees. He has no other concern than running the business using his financial assets properly without greed.

Entering a business is identifying the real market that meets people’s needs. It is not just a matter of trial and error trading methods. When financing a business, always expect a good return or profit. Let yourself be guided by an appropriate season and time. Don’t be in a rush or hurry because business is not a game to be played only to lose. When you care about your business, you also care about your men. Give them the part they deserve so that they remain faithful and active at work. Remember that they also have their financial needs.

Also remember that the life of the business largely depends on them. One form of proper financial management is to give your part. As the saying goes, give to Caesar what is due to Caesar.

What is expected of a company whose manager lacks knowledge of financial management? You may be a millionaire or a laude when you graduated from business school, but you have no financial management skills, but the business will fail. It will just create a roller coaster that will bring the business crashing down.

Big capital is not a guarantee or a big head to prosper, but the ability to financially manage a certain transaction. Neither the quantity nor the number of people employed nor the sophisticated machines used can give great returns. It is in critical planning and the proper application of proper financial management that the world’s most successful businesses flourish.