Almost anyone can start a business. However, not everyone can maintain the business.
In a metaphor, “everyone can sail,” but maintaining business continuity is not a smooth journey. It’s a challenging aspect of business, especially in the midst of intense competition with many similar businesses currently developing. This is where good financial management steps in, playing a crucial role in steering your business through these challenges.
“First, don’t be blinded by revenue. “Because business people like to be blinded by revenue, most importantly, your company is green,” said dr. Tirta Mandira Hudhi, M.B.A., MBA ITB alumni and owner of ShoesAndCare and Forewave, during a talk show session at the GBF 2024 Business Expo on Saturday (11/5). “If you want high revenue but the sales are due to discounts and high COGS, your company is not green but blue. It is not financially secure yet.”
Doctor Tirta was a speaker at the 2024 Ganesha Business Management Festival (GBF) held by SBM ITB at Cihampelas Walk, Bandung. GBF showcases businesses created by SBM ITB students. Apart from business exhibitions, this event invites guest stars with experience in the business field to share their views with all visitors and students attending the GBF 2024 Business Expo.
During the talk show session, Tirta shared his experiences, views, and journey in building a business. According to him, a company must have good financial reports to maintain its business continuity because new businesses often do not have good financial reports.
Tirta said that many new businesses fail to manage financial reports well. As a result, it is difficult to measure actual performance and make the right decisions. A deep understanding of financial fundamentals is an integral foundation for the long-term success of a business.
“So businesses fail because they don’t have good financial reports,” said Tirta. “Basic finance must be memorized.”
Before integrating technology into business operations, Tirta stressed the need for a solid business foundation. He emphasized that accurate data collection and analysis should be a top priority for businesses. This ensures the suitability of products or services to market needs and preferences, and helps businesses avoid customer “pain points”. This is important and crucial for businesses to adapt and thrive in a dynamic environment.
