The capital of the organization is one of the key objects of management of the company's financial and economic activities. Its effectiveness is largely assessed on the basis of the purposefulness of the formation of funds. The main objective of this process is to meet the asset purchase needs.
Instructions
Step 1
Determine the prospects for the development of the company's activities. Capital will be formed on the basis of the data received. Draw up a detailed business plan and include all calculations that are associated with receiving funds.
Step 2
Think about how you can ensure an inflow of funds in the amount that will help meet all the needs for assets, circulating and non-circulating. For example, if you are considering a new organization, these costs include: organizing and conducting a one-time market research, as well as the accumulation of start-up capital, which will increase during the existence of the company.
Step 3
Choose the balance between equity and debt that is optimal for your organization. The advantage of using predominantly equity capital is the greater independence of the enterprise. However, the pace of development of the company is not very high. The advantage of resorting to borrowed capital is that the company gets the opportunity to receive an increase in return on capital invested, but this increases financial risks, and also increases the threat of bankruptcy.
Step 4
Minimize your capital formation costs. The price that an enterprise pays for receiving funds from external sources should be as low as possible.
Step 5
Evaluate all the ways of using capital in the course of the company's activities and choose the most effective one. Profitability should be as high as possible.
Step 6
Remember the main principles of enterprise behavior in case of market volatility. To weather the economic crisis, a company must focus all its energies on preserving capital. To do this, you need to conduct cost optimization. The organization can choose another strategy: to intensify its investment activity and take over a competing firm. That way, your company will not only get through tough times, but also benefit.
