The first duty of a business manager is to get the best possible economic results for their company. All else rests on their ability to create excellent financial performance and profitable results over several periods. Yes, making and managing money takes precedence over assessing corporate social responsibilities and finding cultural opportunities for team members as well. And apparently, manager’s own rewards, i.e., position and salary are also dependent on their money management skills.
Accordingly, there is something to be said about the fact that business managers and executives often run into trouble because of their short-term economic performances. They are sometimes, so concerned with pricing, scheduling, selling, training and quality control that they forget all about the long-term needs of spectacular economic performance.
The good news is that there is a whole array of tools and techniques available for the modern manager to assess and improve their financial performance in real time. There is no denying that fact that financial management skills can be learned. These habits can be successfully developed over time.
A Great Manager Is a Smart Money Manager
The good news is that you don’t need to have a degree in finance to learn how to make and manage money effectively. As mentioned earlier, these skills can be learned. Take for example the following money habits of managers who succeed with money.
Financial Planning for The Win
Have a fool-proof financial plan. Money managers can either create their own ideas or sit down with the finance department to find a custom approach for their staff. The budget plan is the simplest and yet the most important one out there. Having a budget to stick to and holding yourself accountable is the first step to financial success.
It will let you know clear cut if your current influx is sufficient for the planned activities, or if your department will need an injection of cash, or many even downsizing of some of the events. It should go without saying, but both on the professional front and personal front, your income should be more than your expenses. And if that’s not the case, you need to sit down and find a way to lower your costs.
Identify the shortfalls or your success as a manager will be short-lived. Use your time to manage your finances mindfully, or else they’ll be controlling you, all great managers practice this.
Get the Best Deal
Effective managers have a mindset that maximizes the impact of every dollar they spend. They love doing due diligence before spending money and employ various other techniques to help them save money when it absolutely has to be spent.
Having Solid Financial Goals
What good is a financial plan, if it’s not letting you work towards a solid goal? A goal gives direction, sets priorities and aligns your plan with departmental objectives. Be careful when you set goals, and involve all stakeholders to ensure clear accountability. We can sometimes be stunned with the ambition of all our financial targets. But if you sensibly set your goals, you will know which one needs most of your attention. Goal setting will also make you screen your finances continuously to ensure that your financial position is robust enough to help you reach your targets.
Scheduled Budget Meetings with Staff
A competent manager also considers the personal and professional needs of their team along with their own as well as that of the organization. But being a good money manager also means you have to stay on top of your funds at all times. The easiest way to do this is to have consistent meetings about the budget. The significant thing is to check if your budget continues to be aligned with your existing priorities. And it’s okay if your preferences and needs change over time, just make sure that the details are reflected in the budget as well.
Shop and Spend with Purpose
Ours has become an increasingly consumerist society. It rewards spending money especially when it doesn’t need to be spent. In fact, sticking to a budget and getting the most bang for a buck isn’t always appreciated. A smart spender of money, on the other hand, is an excellent manager of money.
We have tried to sketch out a manager’s real work above. It is imperative that the modern manager be aware of their shortcomings, and have a real plan of action, i.e., the budget, in addition to a strong business plan to address these deficiencies.
There are plenty of tools available out there to help make the money manager’s decision-making easier. These crucial decisions can make or break an organization and are vital to the well-being of its people. Financial decisions can be risky and even painful at times. But after all, that’s what managers are paid for!