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  • Formula for corporate financial allocation

    Formula for corporate financial allocation

    Most businesses and companies have an eternal problem: spending a lot but not seeing money anywhere. Many people think that starting a business, starting a business or starting a business, if you want to be successful, you have to spend a lot of money, but the problem of success has never been so simple. over. Putting money in, but allocating that money appropriately for business development, not everyone knows.

    Formula # 1: Never turn your business into a money-consuming machine

    Last Sunday, I had a business advisor to a friend. When giving the number: Total additional expenses / Total profit received = 10%. She said she was really surprised by this number. Because her numbers are too high. And I know most business systems, the number above should be 70, 80%, even 150%, 200%, ... this is a sign of business systems that are on the verge of losing money and bankrupt.

    I said that, it must be 10% to be called business leverage, business leverage. That is with a figure of 10% tells us, with 1 dong of costs we put into this business, quit and this business system, we get 9 back, which means we leverage 9 times. 1 coin put in multiplied by 9 times. 1 coin put in is leveraged 9 times.


    And with this 10% figure, it also says that, when you first build a company, sometimes you have to take all the profits earned, go back to raising the business, which is the total cost. / Total profit = 100%. But that was the original story when it was built. More and more construction, this number must gradually decline.

    Because if you go in the right direction, build the right business assets, these assets will feed the business by itself, you don't have to spend money and feed it anymore. Like in the beginning when you raised the swans, at first, it was the cost of incubation, feeding, eating, medicine ... but when the swans grew up they could swim to the pond to eat, ... pouring into the breeding of the swan will gradually be less.

    Formula # 2: A business that keeps pouring money in is a weak business

    Don't think business means you have to pour money every month. You have to let it feed itself, you have to fry it with fat. You build and nurture assets, and then the time comes to feed it without you spending money. You have to make the number from 100%, or more than 100%, gradually decrease to 10%. Remember, everything is possible, even things must turn out like that. If not, then you are spending money on property. Because the business we build, we take the risk of losing money, we lose our efforts, we put our heart into it, for what? For what? After all, let the business, the system feed us, not we feed it.

    Many doctors boast that the business leverage is only thinking about borrowing, which is debt to create leverage. Just borrow money and then aggressively do. Business goes down is just pouring money in. Few people think about how leverage will be generated. For every dollar we put into that business, it leverages up, multiplies 9 times. This lever is little known and focused on. You need to work towards, and then one day you don't need to put money in it, fry it and it keeps multiplying and making money for you. Business is to let go, not pounce on.

    Formula 3: For example the self-run Marketing system, searching for customers

    Marketing and communication are always the brains of the business, always at the forefront. Facebook broke out, running Facebook Ads, Facebook ads made many people think that if you want to sell, you must advertise. Then there were courses to run ads, and then headline the sentence with a view of thousands and thousands of applications. It has caused a lot of business systems to go wrong in their marketing strategies.

    A marketing system is a system that can live, self-promote, and self-find customers: like a web with quality articles, google seach visitors find by themselves, like a quality youtube channel, cold customers listen in and then convert into warm and hot customers, or like valuable post statuses and have hundreds of people sharing. It is not a system that relies on advertising money, injecting money to get data, if customers come back, if you run out of money, even a few likes will not be achieved.

    You build a marketing system, from website, video channel, facebook channel, ... must be a quality system, a system that provides valuable knowledge, ... and advertising money is just a catalyst. only work.

    Many people just rushed into advertising, wanted to quickly get customers with money, quickly sell their products on contracts, just look at the amount of money in the short term, but forget that, business does not have to make money, but business Joint is building property. Build it to live on its own and we'll get out of that system.

    Formula 4: A strong business is not because of the large amount of money injected, but the value it generates

    To achieve this, you have to force yourself to allocate corporate finances according to the above numbers. Forcing your business to survive 10%. The less money a business has, the more vitality it will be.

    Example: To bring back 100 Data, you had to spend 10 million. But now, with only 1 million, still having to output 100 data, it is imperative that the article be really quality.

    Do not think a lot of money, but quality, a lot of money will make the business extremely weak. On the surface, many sales seem to be fine, but on the inside it is empty. Like an obese person, well-fed, pumped a lot, looking big on the outside but weak inside.

    A business is strong in the value it produces, and that is its asset.

    Like this website moneycoach.vn, I completely hired a team to write about, pouring money into the bump of thousands of headlines, view sentences. But I want this website to have little quality, to provide really profound knowledge for you and the business people, so that your business system is really good. Not a web with many articles but superficial, come once and run with sandals.

    Formula 5: Don't think money determines everything

    If you have read book 101, you will know that money is only a medium of exchange. So money can't make your business strong. What really strengthens your business is the value you provide, which is human brainpower. It lies in strategy, intelligent operation. Don't ever have a problem thinking of solving it with money, that is the last resort. Limit your money, to find ways that are truly valuable.

    Finalize in this article, squeeze yourself, squeeze your business, squeeze your business system, reaching the figure Total cost / Total profit = 10%. And to do this, there's only one way, is to track down your business assets, your business assets, and build it. If you need help, you can read the book Building a business fortune. The more you focus on it, the more leis you will be, the more your business will run and generate more and more money.

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