Running a business involves much more than developing a product or service. Important aspects such as internal organization, treasury, commercial tasks, customer service or the work team are neglected in the hustle and bustle of everyday life and the main goals of the company are neglected.

1. Development of techniques to avoid payment defaults and arrears. It sets out the terms of sale very clearly in each transaction and clarifies the terms of payment. In this case it is usually good to have a fixed and negotiated contract with a tax advisor and/or accountant. It is also very important to look for and implement minimal tools in the company that will allow you to fully manage payments and collections. In all companies, the treasury is something important, but in some it is more important than in others. Poor cash management can cause a business to fail, even if it has good policies and a good product or service. In turn, management and planning must be priorities to help the business grow.

2. Make sure you have a good financial cushion. You cannot rely on subsidies and public aid to get you started, but on the clientele you can find. It’s difficult to source your own resources from the start, so you have to think very carefully about your business model, how long it takes to start billing (because the costs start from the first minute of activity). Choosing when to start an entrepreneurial activity is perhaps the best advice you can give someone who is thinking about it. It is true that the optimal time for starting the activity must also be determined in this financial and strategic planning of the entire company.

3. You will also learn how to seek funding. The initial phase of entrepreneurial activity is not synonymous with the consolidation phase, expansion or growth. The financial needs and the negotiation capacity with the entities are different. One could almost say that negotiating with financial institutions is a mixture of art and very rigorous work. You have to start with the simplest, visiting several public institutions (there are quite a few, especially in the venture capital or microcredit sector) and private (come on, don’t stay in the bank of your life). But there is another extremely important aspect that we would recommend to every entrepreneur.

And it is the ability to capture in a document a very contrived business idea, well thought out and with all aspects such as market, suppliers, customers, employees, human team profile, marketing networks, pricing policy, etc. All these ingredients must be mapped in a way that that the company’s strategic planning becomes clear and credible.

This in itself is a very important reflection exercise for the company’s promoter team, but also a very notable way to reduce financial risk and have a better chance of success in raising outside funding. And it is that the bank or the financial intermediary “does not know you”, and you must prove that you have a company with sufficient guarantees to use the financial resources that it lends you efficiently to grow and values to create and, therefore, to return them with all the guarantees. We think this part is very important because we have found that corporate financial management is a task that requires a lot of effort and is not just going to a bank window to ask for money.

4. Don’t rush to grow up. Growing up is a complicated decision and not without risks, but also opportunities. A growth process should take place when you have a clearly defined, very stable and reliable management model, are accompanied by an established customer base and show the ability to continue to maintain or improve your sales with the same quality standards. But growth means funding, human resources and major managerial difficulties. There is no absolute certainty, but we can plan the jumps to ensure our success.

company management