For prospective online business owners, opportunities to start a business are always within reach. However, these opportunities come with challenges, as competition becomes increasingly fierce.

Starting a business requires more than just financial capital—it requires creativity and a resilient mindset. Managing business finances involves more than just cash; it requires creativity, mindset, and skills.
 

Tips for Managing Cash Flow and Business Budget

Understanding cash flow is crucial in evaluating business profitability and making the right financial decisions for the future.
 

Understanding Cash Flow

Cash flow is usually categorized into three types:

1. Operating Cash Flow

   • Reflects the net cash generated or used in daily business operations.

2. Investment Cash Flow

   • Tracks financial activities related to business investments, such as capital expenditures.

3. Financing Cash Flow

   • Involves funding activities through loans, bonds, or equity transactions involving various stakeholders like investors, owners, and creditors.
      

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Financial Management for Small Business Owners

A common mistake made by novice entrepreneurs is mixing personal and business finances. This disrupts cash flow, potentially harming both personal and business finances.

To avoid this, it's essential to create separate budgets for personal and business finances. This clarity allows for more precise financial management. Once the budget is set, what are the next steps?

1. Develop a Comprehensive Business Plan

   • Start by drafting a detailed business plan. Outline the budget allocation for various business needs, including rent, raw materials, production costs, staff, distribution, and marketing. Estimate expenditures for all these categories.

2. Analyze Business Finances

   • Evaluate the financial plan to identify any shortcomings. If, for instance, you find a shortage of capital, consider obtaining additional funding to expand inventory, improve facilities, or establish new branches. Explore options like business loans to boost capital.

3. Monitor Closely

   • Once the budget is created, diligently monitor cash flow. Ensure enough cash reserves to cover daily expenses. During busy periods, avoid unnecessary expenditures.

4. Manage Surplus Funds

   • Use surplus funds from profitable periods to support operations during tough times. This approach ensures consistent service delivery even during slow business periods.

5. Adaptability

   • Continuously review cash flow and budgeting strategies. Make adjustments as needed, such as reducing unnecessary costs or negotiating better terms with suppliers to optimize spending.

6. Prioritize Debt Repayment

   • If your business has debt, prioritize creating a repayment plan within the budget. Promptly fulfilling financial obligations is crucial for maintaining financial health.

7. Track Business Finances

   • Once your financial framework is established, monitor progress against the budget plan. Stick to the predetermined financial goals and adjust strategies as needed.

8. Create Separate Accounts

   • Separate personal and business finances to ensure clarity in tracking capital, income, and expenses. This separation enhances financial transparency and accountability.

9. Effectively Manage Cash Flow

   • Ensure a stable cash flow to support daily operations amid fluctuating income and expenses. Effective cash flow management is vital for maintaining business operations.

10. Diversify Income Streams

• In the business world, fluctuations are inevitable. To mitigate risks during economic crises, diversify your revenue sources. For example, besides selling air conditioners, consider offering AC servicing or cleaning services.

11. Maintain an Emergency Fund

• Like individuals, businesses should establish an emergency fund to cover unexpected expenses. This fund acts as a buffer to sustain business continuity amid unforeseen challenges.
   

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Manage Finances with Neo Bisnis

Business owners can also benefit from dedicated business accounts through the Neo Bisnis feature. This feature allows for seamless management of business income within a single app.

Neo Bisnis serves as an ideal account for small businesses or companies. It ensures that all financial activities related to the business are separate from personal finances, maintaining clear separation.

Business owners can easily open and manage business accounts online in real-time using their smartphones. They can maximize profits by saving business income in Neo Bisnis savings accounts, which offer competitive interest rates and security.

Features of Neo Bisnis

• QR Payment
• Payment Link
• Transfer
• Journal
• Bill Payment

Advantages of Neo Bisnis

• Separate Personal & Business Transactions
• Provides QRIS Merchant
• Business Transaction Analysis
• Offers Business Loans
• Quick QRIS Fund Disbursement
• Savings Interest

How to Open a Business Savings Account in the neobank App

If you already have a personal account in the neobank app, you only need to create a business account using the Neo Bisnis feature. Here’s how:

1. Open the neobank app
2. Select the Business menu
3. Choose ‘Activate Now’
4. Fill in personal data, then click Submit
5. Your Neo Bisnis account is now active and ready to use

Implementing the above steps provides a strong foundation for effectively managing business finances before launching your venture. Resist the urge to rush into business based solely on initial capital; instead, plan and manage all aspects of business finances carefully.
 

PT Bank Neo Commerce Tbk is licensed and supervised by the Financial Services Authority (OJK) and is a participant bank in the Deposit Insurance Corporation (LPS).