Proper Business Investment Is Proper Financial Management

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You may hear about a business firm that was closed and never prospered. At first there was a shortage of financing, next the laying off of the employees and the finale is the closure of the business. In the eyes of economy such event is a nightmare. This would mean loss of a job to many and poverty. In developing countries like in Asia and Africa many job earners sacrifice leaving their families just to work abroad. Not all of them become successful; many even ruined their lives and their families. One worst result of this is the brain drain. A country lost their best manpower because of economic depression.

Economic experts diagnosed the fault as financial mismanagement. The reason why a business failed is because the investors were not able to use the financial resources properly to the purpose. In fact there are banks, insurance firms, and even government agencies that failed to put the funds to a right investment.

There are other businesses that went bankrupt because of the illegal practices done by the people in the management through mishandling of funds. They ran away the money with them that caused the firm died out in the scenario of business. Not only the lack of business prowess nor the lack of stock holdings but the greed of people concern is the reason why a business organization lost.

A businessman must be a good financial manager. He tries to see to it that he invests his money the most profitable way. He discerns before getting into any business deal. One best attitude that he possesses is being concerned not only about the status of the business but the well-being of the employees as well. He has no other concern but to manage the business using its financial assets properly without greed.

Getting into a business is identifying the real market that serves the needs of the people. It is not just a matter of trial and error methods of business. When financing a business always expect for the good return or profit. Be guided by a proper season and time. Do not be in a hurry or rush for business is not a game to play just to lose. When you care for your business, do care for your men also. Give them the share they deserved so they will remain faithful and active to work. Remember they also have their financial needs.

Also remember that the life of the business depends mostly from them. A way of proper financial management is to give their part. As the saying goes give to Caesar what is due to Caesar.

What do you expect to a business whose manager lacks financial management know-how? He may be a millionaire or a laude when he graduated from the business school but has no financial management capacity still the business will fail. He will just create a roller coaster that will cause the business to shatter.

Big capital is not a guarantee nor a big head to prosper but the ability to financially manage a certain transaction. Not even the quantity or the number of people employed nor the sophisticated machines used can give big yields. It is in the critical planning and proper application as to proper financial management that most successful businesses in the world flourish.

Source by Billy D Ritchie

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