Characteristics and How to Manage Cash Flow for Starting a Small Business in Indonesia

Starting a Small Business in Indonesia – A business is a series of activities related to the purchase or sale of goods and services performed repeatedly. Pioneering new business is not easy, but you deserve to start. To start building a business, you should make good planning. You should conduct a market survey and a suitable price for the product you are going to produce.

Make sure you create a unique business. You should be able to modify the product you are going to produce. A good business is a business that can meet the desires of consumers. Therefore, starting a small business in Indonesia to help the growth of the domestic economy. This business has many important elements and components.

1. Business Characteristics

In the world of economy, business itself has characteristics that are divided into 5 parts, namely:

• Looking for profit or profit.
• Sets the price accordingly.
• There will be possibility to incur losses.
• It deals directly with goods, services or services that meet human needs.
• A business is an institution, institution, or social and economic organization.

2. Managing Business Cash Flow

There are some important things that you should consider if you have started running your business now, one of which is how to manage cash flow properly and correctly.

• Prioritize Money in Front, the system of receiving money in advance as well as you already have a lot of capital. For the implementation of the system, you should be able to reduce the number of buyers who make purchases on credit.
• Make sure Cash in Is Bigger Than Cash Out, to make a big profit, make sure that your income is greater than your expenses.
• Minimize Stock, stock can mean with money stopping. Stocks that are still there because of little purchases, will be a waste of money. You must set it correctly when you are starting a small business in Indonesia.
• When Debt Ensure Cash Flow Can Pay, this means that make sure the person who has debt should be able to pay at the right time and in accordance with nominal or predetermined amount. This will make it easier for you to manage your business cash flow well.
• Allocate Your Income to Be More Structured, your income or income should be allocated to make it more structured, such as from 100 percent of your income, 10 percent for cattle money, 20 percent for backup costs, and 70 percent for operational costs.
• Set Cash Flow Expenditure, manage and manage cash flow in terms of spending. That way you will know the cash flow that comes out used for anything. Those are some ways you should apply to manage your business cash flow properly. With the implementation of these ways, your new business expectations can work well and can increase your business profits.
• Set Cash Flow Reception, you should be able to manage cash flow acceptance well. For example, you manage and manage cash flow in terms of income. By doing so will be known from wherever the cash flow entry.

3. Business Benefits

When it comes to business benefits, it must be that profit is an actual business benefit. More than that, there are some other things that can be put into business benefits.

• Make a profit or profit.
• The opportunity to be a boss, whether a small business or a large business run.
• Be self-paying.
• Unbound and able to manage personal time freely.

4. Important Aspects of Business

To do business must have some aspects that must be fulfilled so that the business that pioneered can run smoothly and successfully. Here are some of these aspects:

• Not afraid to account for all matters relating to the business that will be pioneered.
• Have an honest nature to anyone.
• A person starting a business must have a hardworking nature, in order to carry out his business properly and well to be able to earn profits in line with expectations.
• Have prospects forward or able to have foresight to support the success of the business being pioneered.
• Be able to compete with other businesses.
• Not afraid of business failure, and remain optimistic in developing the business being initiated.
• Able to develop business well, can expand marketing business in various markets either domestic market or abroad.

5. Business Example

Starting a small business in Indonesia should begin with customized planning and fields. Some examples of small businesses that can be developed easily are as follows:

• Culinary Business
  Culinary business, indeed it takes capital. Well … at least we have to rent a business. But we can hire a reasonably priced place. Find a place that remains crowded, but not too expensive. The trick, find a place that is not too big. You can cook elsewhere, and the place of selling is just a place of sale. Excludes the cooking area.
• Clothing and Dropship Business
  Clothing business is currently rampant. if your friends do not believe, please look at trusted online stores such as Tokopedia, Lazada, Blibli and others, observe that the sale of their favorite products are the clothes. This is one type of business that is currently favored by women. The reason is very clear, that the current clothing trend oriented abroad.
  So that our society follow-follow-up. And this is a very good opportunity. To start the dropship system with very cheap capital, that is by registering in Cheap Supplier. The principle works simple, the seller to market a product can be from social media, BBM, WhatsApp or Instagram. then when there is a message, we ordered customer first to transfer funds. After they transfer funds, the seller buys his goods from the supplier and sends them to the buyer.
• Laundry Business
  Starting a business does not always need big capital. One is a laundry service business or often known laundry. This business can start with a small enough capital for equipment spending. The thing to consider before starting the first kilogram laundry business is, you must know how to wash clothes properly. Know the different types of fabrics, stains and how to handle them. Then, apply the equipment that matches the size of the business you are running.
  You also have to calculate how much labor is needed to open this business. Prepare the cost for operational next three months. Calculate operational costs such as paying electricity, leasing of business premises, the cost of buying detergent and water should be taken into account. All components and aspects for starting a small business in Indonesia should be considered well.