Are you one of the employees who feels that your monthly salary is not enough to cover living costs and have fun for a month? Are you also one of those people who supplements their income with a small business?
As time goes by, the cost of living seems to be skyrocketing. Some parties say that this is driven by the prices of basic necessities which continue to increase. There are also those who highlight today's increasingly high needs and lifestyles. It doesn't feel like these two things are disturbing the cash flow balance. The increasing burden of life, for example when we get married, have children, and support our parents also has a big impact on financial conditions, but in certain conditions, this ongoing phase of life is not accompanied by a balanced increase in salary.
Thus, we have two choices: reducing expenses that are not a priority or looking for additional income. The problem is, determining priorities isn't as easy as turning the palm of your hand, right? Sometimes, we are faced with difficult situations that we cannot control, so additional income becomes a more reasonable option. On the other hand, side businesses are not always driven by poor financial conditions or cash flow, but can also be a form of channeling someone's interest or passion.
Actually, having a job or side business is not a new phenomenon. Since many years ago, many people have had a side source of income, but this phenomenon is increasingly being noticed and highlighted nowadays. Reported by Qerja, a survey by CareerBuilder in 2016 found that 29% of around 3000 employees across industries in the United States had a side job, with the majority in the 25 to 34 year age group. This is just one of many examples that we can find in a number of other countries in the world, including Indonesia. Previously, in 2014, a Kadence International survey in TRIBUNnews showed that 29% of urban Indonesians had a side job.
What kind of side business does today's workforce have? The forms of business carried out vary greatly. Some focus on providing various services, for example being an online survey filler, freelance writer, photographer, babysitter, designer, and many more. It is not uncommon for people to choose the route of selling products, such as becoming a dropshipper and starting an online shop, which is now increasingly promising with the development of information technology and e-commerce.
Turns out, many also have additional sources of income! Are you one of them, BossQ? If yes, these tips will be very useful for you.
5 Practical Tips for Creating a More Regular Cash Flow
In this day and age, there are so many business opportunities. People say, as long as we are smart in seeing opportunities and taking advantage of them, the profits will definitely come our way. Even so, no matter how small a business we run, it still requires knowledge. If not, your business might stagnate, stagnate, or even not generate significant profits. Therefore, let's first look at some basic tips for managing finances that you must apply!
Tip #1: Separate Personal Money from Business Money
Perhaps many people are not aware that mixing personal money with business money is the precursor to messy cash flow. If it's mixed up, it will definitely be difficult for you to differentiate between money for your business and money that you have personally, especially if you have a side business outside of your main job. As a result, business money is used for matters outside the business and vice versa.
Well, the easiest way to prevent chaos in your finances is to always record the amount of funds you use for personal needs and for business capital from your salary every month. A more effective further step is to save capital for the business in a separate account. UKM Indonesia also suggests several ways that can be done regarding financial segmentation, one of which is "paying" yourself with three types of payments, namely payment of salary, honorarium or commission for your role as a worker; payment of rent or electricity, water and telephone subsidies for his role as property owner; and payment of profit sharing or dividends for his role as a financier. A number of these methods require discipline and may be difficult to do at first, but when applied consistently, your personal and business finances will definitely be much healthier.
Tip #2: Plan Carefully
While collecting capital to start a business, you can do business planning. Start with some basic plans, for example the type of business you want to build, the activities you will carry out in a certain period, and the amount of capital needed to be able to run your business. Don't forget to set a deadline for starting this business. Quoting the media Business News Daily, you also need to determine the aspects that differentiate your business from competitors, estimate the risks in the business, prepare the legal requirements of the business, and consider the help of other people if needed. Whatever the type, your business will definitely be able to develop well if it is run with careful planning.
Tip #3: Create a Budget in More Detail
One aspect that you should not underestimate in managing your finances is the separation of your budget. Not just recording expenses, but budgeting also includes limiting expenses and appropriate allocations so that cash flow becomes more efficient. In one of its articles, the iconic American magazine Time even emphasized this as a habit of millionaires in managing finances. By following the budget regularly, millionaires can know the amount of money coming in and going out. From here, they can design a spending budget, so they can buy all the necessities appropriately and avoid wasting money. They are also more careful in comparing costs between products or services needed so that expenses are managed effectively. Even if you only have a small-scale personal business, this principle is still important.
When your business is running, don't forget to do reviews regularly, okay? Once a month is enough, the important thing is to do it consistently. The aim is to compare the condition of cash flow from the previous period, whether it has increased or decreased. That way, you can find out the next business steps.
Tip #4: Set aside Profits to Play Again
Another tip that you can apply is don't be quickly satisfied if you make a profit. Shouldn't we be happy when our efforts bring profit? Of course you can, but don't just waste the profits you get just for fun. In fact, it's best if you can turn most of the profits generated back into developing your business. For example, you can use the money to add new tools that can become inventory, hire new employees, or increase merchandise stock. The principle is to always use profits wisely. If you are tempted to use your money for temporary entertainment, remember the adage "little by little, over time it becomes a hill." Just imagine your potential cash flow and profits in the future by delaying satisfying yourself now!
Tip #5: Monitor Financial Flow Movements
Financial flow or cash flow helps measure income and expenses from the operational activities of a business. Cash flow is an indicator of the health of the business. This means that in monitoring the financial flow or cash flow of a business, business actors are required to be more careful about every process involved, such as when purchasing inventory of goods or raw material stock. Don't over-buy supplies of goods when there is not much demand. As a result, stock can accumulate and cause income to stagnate.
So that stock management is not only based on personal estimates, you can use the flagship Manage Stock feature in the Qasir application. You will also know the stock of the best-selling items, the longest-selling items, and the ten best-selling items each month more accurately. Now, Qasir is also equipped with a new feature that allows you to directly order various products from distributors who have collaborated with Qasir.
How are you, BossQ? Did you learn anything new from these five tips?
Whatever the form of your business, product or service, main or side job, the most important principle is to always record every transaction you have made. Of course, everyone wants to have finances or cash flow that are neater and more balanced.
Well, for faster transaction recording, the Qasir application has simple features that make it easier for you to run your business, starting from adding, deleting and managing your sales products, making complete transaction records, to creating physical and digital receipts. With a mission to empower MSMEs through technology, the Qasir application can become your reliable friend in managing your finances more intelligently. As easy as download the free cashier application created by the nation's children, your business journey will feel much different than before.
Come on, use Qasir for healthier finances and increasing business!