Financial literacy in running a business

[Starmix]

If you lack financial literacy, then it is useless to run a business. Your profit might be put to waste or there will be no money to save in the bank. It may not be on your mind what to do with the money. what's on your mind will be to spend, and buy the things you like, buy the things your family likes despite not being essential. There are basic things to know for financial literacy and these include the following: banking, budgeting, handling debt and credit, and investing. What you gain in your business big or small could also be spent for an investment, so you will have nonstop gains.

It is a must for a businessman to choose his bank to deposit the proceeds of his business, thus enabling him to manage his debts, in case he has. He can withdraw only what he needs as payment for a loan for example. Budgeting is also part of financial literacy. It is not easy to budget especially if you are an elite businessman. You always attend parties and special gatherings if member of a club like the Rotary Club.

You have to understand the value of money and being financially literate gives you the ability to understand that you need to be effective in your decision in relation to various financial skills including financial management, budgeting, and investing more. You have to make sure that you have the basic foundation of a relationship with money for you will have a lifelong journey with your business. It is good to be smart and financially literate.

 

[Niyi Briggs]

Business is all about and you must be financially intelligent to be able to run a business. You must learn to keep records of financial inflow and outflow and also he able to make sound financial decisions as a business person.

 

[Shavkat]

It is a fact that we need to be financially inclined in running a business. Although it would not be cost-effective if you are going to hire someone to deal with these financial matters.

 

[Starmix]

It is a fact that we need to be financially inclined in running a business. Although it would not be cost-effective if you are going to hire someone to deal with these financial matters.

It's good for the business owner to deal with his financies. An accountant will be hired to do the debit and credit and to balance the cost accounting, thus helping the owner minimise his works

 

[Shavkat]

It's good for the business owner to deal with his financies. An accountant will be hired to do the debit and credit and to balance the cost accounting, thus helping the owner minimise his works

When we still have our family business, we availed the service of an accounting firm. They are the ones who take charge in dealing with the financial matters. It was a great relief for us at that time.

 

[Niyi Briggs]

It is important for a business person to have financial literacy in order to run a successful business. You have to know how to manage the finances of a business successfully.

 

[Stardom22]

Financial literacy is the key component for a very successful businessman in the industry. One must have a robust knowledge in the financial, budgeting, saving and investing for them to be able to make it in business

 

[Magnus2022]

There are some business owners that can not say authoritatively that their business is in upward trend or downward trend. I don't call such a business. A business owner must be financially savvy to be able to succeed in a business.

 

[Stardom22]

I think that's what the financial assets of the business comes in. Businessmen should be very keen on the keeping up of the financial assets of the business. It is through this that comes to salvage the business during hard economic times of the business.

 

[Starmix]

Most businessmen have accountants and lawyers, so they are protected against losses unless they won't hire. Bur accounts are very important to do debit and credit and to balance the accounting for taxes and see updates if business gaining. If the owners are financially literate, they know well how much to spend for their needs, wants, and savings by applying the 50-3-2 rule.

 

[Stardom22]

I think this is quite relevant for the bigger companies and business organisations. Buy take s look to the small scale business that could not afford legal, accounting among other services.

 

[Starmix]

Business owners if ignore financial literacy, they will surely go down from their level. <money is hot and those rich business owners never think that will disappear like smoke. Those financially literate despite the business being small, time comes it rises and becomes big and advantageous.

 

[uptrendfinancialsignal]

A high level of financial literacy is needed to run a business successfully.

 

[SHAHID987]

Financial literacy is obviously one of the most important requirement of a business, as in cities there is no concept of doing business without having much knowledge about many modern things, but we cannot say that without it we cannot do business. In villages illiterate people are also doing good business but they are only few.

 

[Starmix]

Financial literacy is obviously one of the most important requirement of a business, as in cities there is no concept of doing business without having much knowledge about many modern things, but we cannot say that without it we cannot do business. In villages illiterate people are also doing good business but they are only few.That's so true. In the absence of this to business owners they will face disasters. They may not notice right away the losses until time comes that stocks are not anymore replaced. Customers will be invisible.

 

[IB D]

Every business action that would involve finances should start with a budget. And you must have techniques of budgetting to succeed.

 

[Shavkat]

It is important for a business person to have financial literacy in order to run a successful business. You have to know how to manage the finances of a business successfully.

I do agree with you. A business owner should need to learn the financial part of having a business. If he or she can not do this, it would be a big problem.

 

[Starmix]

A high level of financial literacy is needed to run a business successfully.

Yes, that is right, if not, the said business will never grow fast. The business owner may not apply the 50-30-20 rule ,making his plans unsuccessful. His wants may overrule his needs forgetting the 20 which is saving.

 

[Shavkat]

Yes, that is right, if not, the said business will never grow fast. The business owner may not apply the 50-30-20 rule ,making his plans unsuccessful. His wants may overrule his needs forgetting the 20 which is saving.

This is not a good thing if they missed one of the rule: 50-30-20. I do agree that 20 is still need to be considered at all times. If they not that vigilant on this, they may fall to a terrible situation.

 

[Starmix]

This is not a good thing if they missed one of the rule: 50-30-20. I do agree that 20 is still need to be considered at all times. If they not that vigilant on this, they may fall to a terrible situation.

That is right unless the person has many businesses like Lucio Tan and Henry Sy hehehe. Their money is directly deposited to the bank and it's the bank personnel assigned to receive the money is escorted by heavily armed guards.