[ARTIKEL] 07 Aug 2021

How to Manage Finance for Culinary Business

Starting a business does have its own challenges, especially in managing finances so that cash flow circulation remains safe. The fact is that currently there are still many culinary businessmen who still do not understand how to manage finances to run their culinary business, resulting in uncontrolled expenses.

Messy financial management and the absence of regular records can have an impact on the smooth running of the business. Therefore, it is necessary to have a reference or management standard that you need to apply so that the business can run smoothly and can be neatly arranged and can get maximum profit.

Here are some ways to manage finances when you run a home-scale culinary business.

1. Make a plan

When you start a business, or run a new business, all you need to do is make a plan. Programs and business plans in one long period, then you need to divide the plan into several short periods such as quarterly, monthly, or even weekly.

Do a detailed calculation of the need for funds to run the program. Then target when the program is run so that you can achieve target after target according to the initial plan.

2. Make a budget

By creating and compiling a budget, you will know the limits per each expenditure that you will spend, according to the budget you have compiled so that the flow of expenses can be as needed.

After the budgeting arrangement is running, you can also readjust the arrangement according to your needs and review the history you have from the previous arrangement. this needs to be done regularly so that the business runs according to plan.

3. Learn new things about finance

By learning about finances, it will be easier for you to understand the state of your business, especially in reading financial statements. Some basic reports that you need to understand such as: Capital reports, income statements, cash flow statements, balance reports. If you can read and understand some of these financial statements, you can certainly support and understand the internal finances of your business.

4. Using profits to grow your business

When your business is running and making a profit, you should set aside some of the profit to be used as additional capital to develop the business.

In addition to using it for personal purposes according to your needs, it is highly recommended to set aside some of the profits to increase capital. When your business can grow and get a lot of benefits, it can be said that your business is running successfully.

5. Separate personal money from business capital money

When a business is running, it is highly recommended to separate personal finances from business money. No matter how big or small the business you have, you should separate each finance because if you mix the two finances, it will have the potential to spend business money for personal needs.

The easiest way to separate these finances is to store money in different places, for example using different wallets for each finance.

As a businessman, of course, the main point that is emphasized is to profit from sales and take advantage of the necessities of life. So, instinctively, a businessman knows how the types of cash flow have the potential to destroy the business itself. However, the average thing that destroys a business especially the food business is the types of cash outflows.

Examples of types of potential cash flows:

• Spending capital
• Investment capital
• Investment expenses
• Life Necessities Money
• Business Savings
• Sales profit
• Employee salary (if any)

The problem of managing finances for shopping needs can indeed be different for every business owner, especially food. However, the point is how capital expenditures are not able to affect profits or not maximize profits. So it is necessary to have good financial management.

Thus the 5 best ways to manage the finances of a home-scale culinary business, hopefully the above article can help you manage business finances for the better. In addition to managing your finances, you can also learn other things to maximize your business, such as: [7 Tips for marketing a home-scale culinary business.] home-based "7 Tips for marketing a home-scale culinary business")

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