How To Carry Out Financial Management In The Era Of Knowledge Economy

An enterprise should know when to add and when to subtract. Generally speaking, enterprises are doing additions in the upwards period, making additions to speculation, and rapidly expanding primitive accumulation. When we are bigger, we need to do subtraction, and we must concentrate and deepen the main business. After this stage, addition is added. As an extension of the main business chain.

In the era of knowledge economy, business risks are more diversified and changing faster, so the impact on finance is even greater. In the new economic environment, high-tech enterprises collapse faster. Many enterprises have also entered a misunderstanding, that is, money is money. Many enterprises tend to be more aggressive in management and equate financial management with financing.

In the new economic environment, it is more important to consider financial risk control, profit management and multilateral control of the market, and to combine financial risks with operational risks. That is to say, the higher the risk of the industry, the greater the volatility, the more conservative the financial. Under normal circumstances, the core business of the company tends to mature or turn to other fields, and the operational risk will decrease. Accordingly, the financial risk will begin to increase correspondingly.

Fundamentally speaking, the risk of enterprises is caused by borrowing and so on. A business run solely by its own capital is only operating risk without financial risk. How should enterprises balance and avoid the financial risks of debt financing?

There are three stages in the development of enterprises. These three stages are accompanied by three major activities, namely, business activities, fund-raising activities and investment activities. In the course of the development of enterprises, the process of these three activities gradually forms a process of increasing financial risks.

In the development period of free capital, many enterprises rely on free capital and their primitive accumulation. At that time, enterprises lack the ability to control. At this time, the financial risk comes from the changing ability of business activities, and the next round of business cycle is maintained. The most difficult part is the operation and development of the market.

After business stability, enterprises need financing channels and capabilities to support the development of enterprises. The high development of enterprises brings high sales growth, high cash demand, high debt and the possible loss of management efficiency, and the decrease of profit margins. The financial risk of enterprises increases. Enough financial support can support enterprises to become stronger and bigger. Therefore, enterprises should increase their ability to control risks. Moreover, it is best to expand in its main business.

After a period of time, the main business of enterprises will become rigid, and the development of enterprises will encounter bottlenecks, and the growth of enterprises will be limited. At this time, enterprises must invest. Looking for new growth points to cultivate new main businesses. At this stage, it is very important to balance the three aspects of business, financing and new market opportunities. At this time, the main problem facing enterprises is not the problem of borrowing, but on the one hand, enterprises need to expand the new main business. At the same time, it also faces great financial risks. Moreover, in the new investment projects, whether the original experience of enterprises can be effectively grafted, and then effective control has become particularly important.

Once the business is bigger, the financial risk is also increased, and the probability of large enterprises falling down due to the broken capital chain has increased. In China, there is still a lack of assistance and protection in China. commercial interests Under the premise of the system, how can private enterprises achieve self-help and make them stronger?

First of all, enterprises should not run too fast in the course of development. Management behavior We must take stability as the first principle. In addition, the breakup of capital flow leads to the failure of enterprises, which is only a reflection of direct problems. In essence, enterprises lack the ability to prevent financial risks and manage cash flow. The development of enterprises is sustainable, and the role of business management is embodied in systems and security. In the course of growth, Chinese enterprises still need to develop their abilities comprehensively and cultivate their own from the inside to the outside world. competitive power This is the way to become stronger, and only by importing resources from outside to inside (merger and investment) can be bigger but not sustainable development.