ENTRY NUMBER 13: AM I EARNING WELL?
I remember a time when my Dad asked me how my businesses are going. He asked me "Jay, kamusta na negosyo mo?"
Of course the usual answer is "Well OK naman po". Then another question is brought up "Mga ilang percent na kinita mo sa ngayon?" (How many percent earnings do you have so far?)
I was shocked. Well................................. to tell you the truth i don't have exact numbers at that time.
So i answered. "More or less i almost got my capital back", I said it in a not-so-sure tone.
Quite unimpressed with my answer, he told me "Ok, but make sure you account your earnings well"
Now you may ask, What is the connection of my experience to your financial education and intelligence?
Let me tell you something,
If you will read my previous entry (ENTRY 12 : KNOWING HOW MONEY WORKS) i learned that money works IN or OUT.
Napansin ko po kasi na hindi sapat na alam mo lang kung paano nalabas at napasok ang pera.
What is important is how will you apply it in your everyday living.
Especially if you are running a business
Or even budgeting your expenses.
You will encounter people who has their own respective businesses but does not have the idea of running it well.
Naalala ko ung friend ng tatay ko. He asks the same question " Kamusta na ung stocks mo? " sabi ng kaibigan nya "Ayon kumikita naman" but when you ask them how much, the answer is quite disturbing
"Basta Kumita ako, hindi ko lang alam ang exact amount"
THAT IS QUITE DANGEROUS MY FRIEND
I EXPERIENCED IT FIRST HAND
When i started doing my business, I didn't account my earnings. (Remember i'm not an accountant by profession)
I only relied on the data that is showed on the ledger of my online account
The result: I don't even know if I'm on the right track.
You gradually lose confidence in your business because you don't have FIGURES (I'M TALKING ABOUT NUMBERS OK =) )
Remember the principle of ASSET and LIABILITY ????
WELL APPLY IT AND PUT IT INTO PRACTICE
HOW???
YOU KNOW HOW TO READ AND WRITE DON'T YOU????
IT'S ALL ABOUT RECORDING
Most of you at this point will say "Eh alam ko na yan eh!!!"
WELL YOU KNOW THE PRINCIPLE
BUT THE THING IS YOU DON'T PUT IT INTO PRACTICE
Let me share my experience
During the first month of my e-loading business I tend to use part of my capital for personal use
Since i don't keep track of this i thought I am earning well.
THE RESULT: After my dad helped me out account my business records (well my father is an accountant for real)
I found out that almost a third of my loading sales is from my PERSONAL CONSUMPTION.
And this is because of the fact that I didn't account my expenses......
WITH THIS, I LEARNED MY LESSON
GUYS hindi po mahirap ang mag account, sa totoo lang hindi mo kelangang maging accountant para matutuhan ito, After that experience i seek the advice of my dad. He said "basta marunong ka mag add,subtract,multiply at divide magagawa mo ung ginagawa ko"
and it starts with RECORDING YOUR TRANSACTIONS
TO CUT THE STORY SHORT, I WOULD LIKE TO SHARE MY TIPS ON HOW TO DO YOUR BUSINESS WELL
1. RECORD - opo you heard it right! ...... ito ang unang hakbang para sa atin,
lahat ng ginawa mo na tungkol sa negosyo ay isulat mo
-at best, do it on a regular basis
-depende po yan sa negosyo mo (kung daily monthly o yearly)
2. MINIMIZE PERSONAL USE IF POSSIBLE - kaya po tayo namuhunan in the first place
ay para paikutin ang pera natin, at hindi gastusin
- kung gusto nyo gamitin ang kita ninyo make sure na bawi
nyo na puhunan nyo (100 percent return para sure)
3. AVOID OR MINIMIZE PENDING PAYMENTS - in short, hangga't maari iwasan ang pag papautang
-maraming negosyo ang nagsara dahil hindi nila nakukuha
ang kita na dapat ay sa kanila
-kung hindi mababayaran kaagad, make sure the customer is credible enough that
he meets proper payment terms
Ito po ay ilan sa mga natutuhan ko sa aking pagnenegosyo
I hope makatulong po sa inyo ito... Remember every successful businessman learns from experience
They are not afraid to make mistakes and always take CALCULATED risks....
Till next post.... God bless
Of course the usual answer is "Well OK naman po". Then another question is brought up "Mga ilang percent na kinita mo sa ngayon?" (How many percent earnings do you have so far?)
I was shocked. Well................................. to tell you the truth i don't have exact numbers at that time.
So i answered. "More or less i almost got my capital back", I said it in a not-so-sure tone.
Quite unimpressed with my answer, he told me "Ok, but make sure you account your earnings well"
Now you may ask, What is the connection of my experience to your financial education and intelligence?
Let me tell you something,
If you will read my previous entry (ENTRY 12 : KNOWING HOW MONEY WORKS) i learned that money works IN or OUT.
Napansin ko po kasi na hindi sapat na alam mo lang kung paano nalabas at napasok ang pera.
What is important is how will you apply it in your everyday living.
Especially if you are running a business
Or even budgeting your expenses.
You will encounter people who has their own respective businesses but does not have the idea of running it well.
Naalala ko ung friend ng tatay ko. He asks the same question " Kamusta na ung stocks mo? " sabi ng kaibigan nya "Ayon kumikita naman" but when you ask them how much, the answer is quite disturbing
"Basta Kumita ako, hindi ko lang alam ang exact amount"
THAT IS QUITE DANGEROUS MY FRIEND
I EXPERIENCED IT FIRST HAND
When i started doing my business, I didn't account my earnings. (Remember i'm not an accountant by profession)
I only relied on the data that is showed on the ledger of my online account
The result: I don't even know if I'm on the right track.
You gradually lose confidence in your business because you don't have FIGURES (I'M TALKING ABOUT NUMBERS OK =) )
Remember the principle of ASSET and LIABILITY ????
WELL APPLY IT AND PUT IT INTO PRACTICE
HOW???
YOU KNOW HOW TO READ AND WRITE DON'T YOU????
IT'S ALL ABOUT RECORDING
Most of you at this point will say "Eh alam ko na yan eh!!!"
WELL YOU KNOW THE PRINCIPLE
BUT THE THING IS YOU DON'T PUT IT INTO PRACTICE
Let me share my experience
During the first month of my e-loading business I tend to use part of my capital for personal use
Since i don't keep track of this i thought I am earning well.
THE RESULT: After my dad helped me out account my business records (well my father is an accountant for real)
I found out that almost a third of my loading sales is from my PERSONAL CONSUMPTION.
And this is because of the fact that I didn't account my expenses......
WITH THIS, I LEARNED MY LESSON
GUYS hindi po mahirap ang mag account, sa totoo lang hindi mo kelangang maging accountant para matutuhan ito, After that experience i seek the advice of my dad. He said "basta marunong ka mag add,subtract,multiply at divide magagawa mo ung ginagawa ko"
and it starts with RECORDING YOUR TRANSACTIONS
TO CUT THE STORY SHORT, I WOULD LIKE TO SHARE MY TIPS ON HOW TO DO YOUR BUSINESS WELL
1. RECORD - opo you heard it right! ...... ito ang unang hakbang para sa atin,
lahat ng ginawa mo na tungkol sa negosyo ay isulat mo
-at best, do it on a regular basis
-depende po yan sa negosyo mo (kung daily monthly o yearly)
2. MINIMIZE PERSONAL USE IF POSSIBLE - kaya po tayo namuhunan in the first place
ay para paikutin ang pera natin, at hindi gastusin
- kung gusto nyo gamitin ang kita ninyo make sure na bawi
nyo na puhunan nyo (100 percent return para sure)
3. AVOID OR MINIMIZE PENDING PAYMENTS - in short, hangga't maari iwasan ang pag papautang
-maraming negosyo ang nagsara dahil hindi nila nakukuha
ang kita na dapat ay sa kanila
-kung hindi mababayaran kaagad, make sure the customer is credible enough that
he meets proper payment terms
Ito po ay ilan sa mga natutuhan ko sa aking pagnenegosyo
I hope makatulong po sa inyo ito... Remember every successful businessman learns from experience
They are not afraid to make mistakes and always take CALCULATED risks....
Till next post.... God bless
HOPING FOR YOUR FINANCIAL SUCCESS
WILLIE VERIDIANO JR
WILLIE VERIDIANO JR