Being proficient in financial methods is essential for maintaining the success that women achieve through their business endeavors. Effective money management can help overcome growth obstacles and take advantage of new opportunities, whether you’re launching a new business or expanding an already existing one. Having personally navigated these challenges, I can attest that understanding your finances is foundational to building lasting success. Here are a few financial strategies that have helped me in my journey, from starting my career with a modest capital to now being a mentor and guiding others through their entrepreneurial paths.
Settings Goals and Understanding Basic Finances
Financial literacy goes beyond just crunching numbers—it’s about developing the confidence to make informed financial decisions that directly impact your business’s success. Understanding key financial principles enables you to take control of your business and set it up for sustainable growth. Focus on these critical areas:
Setting Goals: Setting attainable goals which are measurable is important. It can be related to revenue growth, bringing new equipment, and reducing expenses. Setting such short-term goals helps to gain confidence and further helps business.
Budgeting & Cash Flow Management: Keeping a close eye on your income and expenses is essential. Make sure you’re setting aside funds for taxes, reinvestment, and unexpected costs to maintain financial stability. When I started Webcom Information Technology Pvt Ltd. in 1989 with Rs. 10,000, proper budgeting was key to making every penny count.
Profit Margins & Pricing Strategy: Fully understanding your costs is key to pricing your products or services correctly. Setting the right price ensures that you cover your expenses and still generate a healthy profit margin. I have learned this firsthand as I worked on the financial aspects, ensuring the pricing strategy aligned with the company’s growth goals while maintaining profitability.
Seeking Professional Help: Whether it’s working with accountants, financial advisors, or using online tools, seeking guidance is a great way to ensure you’re on the right track and making the best financial decisions for your business. I’ve worked closely with financial experts throughout my career, especially when scaling businesses, to make informed decisions.
Improving your financial literacy will empower you to make better decisions, minimize risks, and unlock new opportunities for business growth.
Scaling Your Business
Scaling a business is an exciting yet complex journey that demands more than just a great product or service. It requires a solid financial strategy to ensure you grow sustainably. Here are a few financial strategies to consider as you scale:
Secure Funding: Whether it’s through small business loans, investors, or grants, securing the right funding is essential for expansion. Before seeking external financing, ensure your financial records are accurate, organized, and reflect your business’s health.
Stay on Top of Cash Flow: Consider adjusting your pricing structure, negotiating better terms with suppliers, or offering customers incentives for early payments to optimize cash flow and maintain enough liquidity. In my experience, cash flow management was a constant priority, especially during periods of rapid expansion.
Leverage Financial Forecasting: Accurate financial forecasting allows you to anticipate future revenue, expenses, and potential challenges. By forecasting trends, you can make proactive decisions, adjust strategies early, and ensure that growth remains steady rather than reactive. This has been vital in my work with Manasum Senior Living, where forecasting future trends has guided expansion plans.
With a strong financial foundation and proactive planning, scaling your business can be a more strategic, efficient process, minimizing risks while maximizing opportunities.
Having Sustainable Growth
Sustainable growth guarantees that your company expands at a manageable and financially sustainable rate. Here are some tips for expanding without endangering your financial stability:
· Diversify Your Revenue Streams: Your company may be at risk if it depends just on one source of revenue. Think about entering new markets or providing supplementary goods or services. This will lower risk and help guarantee steady cash flow. When I co-founded Manasum Senior Living, diversifying revenue streams by adding more services to our senior living model allowed us to strengthen our financial position.
· Reinvest in Your Business: Instead of pulling out profits early, consider reinvesting them back into the business. This can mean upgrading technology, hiring skilled employees, or marketing your brand to a wider audience. I believe that reinvestment is essential for long-term growth.
· Monitor and Examine Your Finances Frequently: You can stay on course by keeping an eye on your company’s performance through frequent financial check-ins. Make use of key performance metrics (KPIs), such as profit margins, return on investment (ROI), and growth rate to guide decision-making. Regular financial check-ins helped me manage both Webcom’s and Manasum’s financial health and plan for future growth.
Sustainable growth is about making smart financial decisions that allow your business to expand at a healthy rate without stretching resources too thin. It’s about balancing passion, strategic vision, and prudent financial management, just as I have done throughout my career.
I’ve seen firsthand how strong financial practices can lay the foundation for business success, and I encourage you to embrace these principles as you embark on your entrepreneurial journey.
Shared by: Mrs . Sumathy Anantharam Varayur,
Co-founder of Manasum homes senior living
