Having your own company is the dream of every entrepreneur, but when this desire comes true, there are certain aspects that must be paid close attention, such as working capital, which is essential for a business to function properly. correct.
In addition, the working capital will allow you to carry out some procedures such as the purchase of inputs, cover production costs, pay rent payments, maintenance, employee payroll, tax obligations, among others.
Counting and maintaining that working capital fluidly is sometimes not so easy, and many times entrepreneurs find it necessary to resort to financial institutions that provide them with loans and other products that can help them with financing.
In this sense, to optimize the working capital in a business, some recommendations should be followed:
1.- Effectively manage accounts receivable: it is important to bear in mind that the longer it takes to receive the money from sales, the less capital will be available to carry out other fundamental business operations, which could cause delays in other payments .
For this, it is essential to anticipate these deadlines and speed them up as much as possible.
In addition, you must be fully aware of the amount of money you have and allocate it to cover the main expenses, in order to avoid taking risks.
2.- Reduce accounts payable: it is essential in a company not to abuse resources and, if possible, try to reduce the amounts related to payments.
For this, for example, you can negotiate with suppliers in order to obtain better prices; Consider the option of making advance payments in the medium or long term, consider partnerships or strategic alliances, among other alternatives that allow reducing the expenses of business obligations.
3.- Refinancing debts: many times paying more than one loan can become a hassle each month, since each one has a cancellation date, as well as a different interest rate.
A good alternative is to finance all these debts through a single credit that allows you to order and pay all these commitments, leaving only one entity to pay.
4.- Having different financial alternatives: it is relevant that a company can have different financial options and thus be protected against unfortunate events that may affect working capital, taking as an example what happened with the health crisis.
For this, it is necessary to have a credit card and/or a line of credit to guarantee the ability to pay in the event of any eventuality, as well as to establish an emergency fund that can be generated by saving up to 15% of sales. monthly.