The long-term success of a company necessarily depends on the ability to prepare economically for all the steps it will need to take. Innovation, creativity, excellence in products and services and good customer service are basic premises, but None of this is possible if the financial area is not organized to provide support. Companies, especially small and medium-sized ones, always need to work from two perspectives: finding spaces to increase revenue and growand being prepared to get through the moments when things can go wrong axes.
Preparation for what changes the “normal flow” of things
We have the great example of the pandemic in our memory, but any less significant event could alter the flow considered “normal” of things:customer defaults, some more sudden change in the macroeconomic scenario, scarcity of raw materials, more aggressive maneuvers competition and logistical difficultiesare some of the points of attention, but the truth is that they are infinite. According to the macroeconomic projections, 2024 promises a slightly more favorable scenario than what we had in 2023, which in itself already causes moderate optimism in the business environment.
- Inflation measured by the Consumer Price Index (CPI) has been slowing down in recent months.
- The Selic estimate, the economy’s basic interest rate, is 9% for 2024 (lower than the projection for 2023, which was 11.75%). In fact, I suggest you read this article on the Vibratto blog about how interest policy affects companies to better understand this relationship.
- The unemployment rate has also fallen
For a calmer 2024…
The recommendation for getting through the year 2024 without major financial upheavals is the same for every year, in fact.
Caution
Always have a cautious attitude towards business finances. I talk extensively about this, but it’s always important to emphasize: don’t fall into the trap of patrimonial confusion. Do not confuse the company’s resources with yours, as an entrepreneurial partner. Other aspects are important in terms of caution: carefully evaluate the possibilities of movements, investments and hiring (we also have a very informative text on the Vibratto blog about what to consider from a financial point of view when hiring.
Save, save, save
Making rational use of resources and building cash flow are challenging tasks within companies, especially in uncertain scenarios, but you need to work with this perspective. Strengthening cash brings many advantages, expanding entrepreneurs’ negotiating capacity and the ability to implement improvements in their own business.
Invest
If your ability to save is great and you manage to have more than an emergency fund, it’s time to invest. Distributing this money in diversified and profitable applications will help you multiply the company’s assets. Remember that you can count on the support of a BPO specialized in taking care of your financial area and providing guidance with all these issues. 2024 is going to be wonderful. I am always optimistic. Shall we schedule a call?
