Signatory Restaurant Receipt Template Made Easy

Signatory restaurant receipt template

so good afternoon everyone happy Sunday first Sunday we're gonna be talking about the basics of business finance okay so I'm charm de Leon from ready paddle pH I also blew these classes I'll call it the crash course series but we just ended last Friday and I'm gonna be attending classes from now on so again good afternoon today's outline will be we're gonna talk about the reasons why businesses fail we're gonna talk about capital cash flow record-keeping product pricing managing your growth and then at the end we're gonna have a Q&A so this afternoon I'm gonna talk about more on the business finance of self-employed meaning you're a freelancer and Adrian or broker skilled trades professionals like doctors architects etc who does not have any employees so you're called that's what self employment is and then also I'm gonna cover MSMEs or micro small medium enterprises okay so these are as classified in the Philippines it's different per country but it's between 1 to 199 employee so on the top 5 MSMEs or wholesale and retail trade accommodation and food service manufacturing enterprises other service enterprises and finance and insurance activities ok so the reason why I'm covering more of like the start-up and smaller scale businesses is because if we try to cover the entirety of the business finance especially if you move on to large corporations and the technical side of accounting and bookkeeping first I can't really talk about that again I'm not an accounting guide with and also um we're not gonna finish so it's I'm gonna cover the basics so this is perfect for start ups of course if you are a more advanced company you've been around for 10 years 15 years then I suggest a different side as well and I will be mentioning some of them later okay so I hope you got that okay so we're gonna talk about first some of the reasons why businesses fail so some of the reasons include poor marketing or location work or a part of quality or management and lastly poor financial management okay so poor management meaning poor leadership so I'm not gonna cover the other four and I think it really varies from business to business but I am gonna talk to you about something that I'm familiar with which is poor financial management or business finance because like I said I handle all the finances of our businesses so in the per finance management we're going to talk about insufficient capital poor cash management poor record-keeping and controls improper product pricing and uncontrolled growth okay we're gonna go through them one by one don't worry if you're kind of overwhelmed right now but yeah first is insufficient capital so it's not giving you a start-up time to grow what does that mean so when you're starting a business here are some things that you have to consider when you're starting out it will take time for people to find you and buy from you or get get your services okay so in some of the cases I will be talking about services as also a type of product because if you're a service based company then your products are your services okay so to take time for people to for example you have an Instagram business or no online business it could take time for them to find your page to finally you know have enough trust to buy from you because sometimes they're gonna wait for some reviews they're gonna wait for someone who has ordered from your business so it's gonna take time and when you're starting out you shouldn't expect to make back your capital right away or at all that might be contradicting to why you're starting a business but making back capital is actually not guaranteed but if it does if you do meet Mac your capital it can take a few weeks or even a few years it depends on the scale of your business and your business model okay so next are payment delays this is more common for a service type industries but also if your product if you're selling products and you're catering to let's say especially if you get both orders from companies or from the government so I have a friend who supplies uniforms to the government the BA it's a really big really big order let's say it will be like millions worth but it will take time for them to process the payment and you're already out all your resources and supplies right you've already paid your people you've already paid for the raw material so you need to expect that when you want to take bigger clients which is too good for both of your company or your business it entails a payment and that's because of the process that we have to go through as a company so for us medium company payments can take up to two weeks but that's because we need signatories it has to go through our accounting it has due process but when you're dealing with example I've dealt with companies like and I'm not saying they're bad it's really just the process like a globe or foodpanda or Phoenix it's really a business practice if the payments can take from 30 to 60 days and they tell you that ahead before you accept the deal so here are just some things that you have to consider so that means that when you're starting a business the usual is maybe around six months again it depends on your business type and model but usually on six months you have to expect that you're not gonna be at your best shape just yet okay okay talking about capital I'm gonna briefly talk about where you can get capital because I'm sure some of you are interested if you don't know yet so first is bootstrapping bootstrapping is basically funding yourself or getting funds from easily-accessible people like your friends your family your relatives and the good thing about this is you don't really have a lot of paperwork and also majority of the times you can't get too much you're not guaranteed an exact amount or a really big amount and then crowdfunding so if you're familiar with Kickstarter or part project Philippines crowdfunding so you basically just need to explain your product take pictures of your product and then people will then fund products they believe in and then you can manufacture it or make it in both right and then seeking funds from incubators and accelerators seeking angel investors seeking venture capital so incubators accelerators angel investors and VCS are very similar this is an order usually I'm the seed or the beginning the start-up fund is coming from incubators and accelerators and then angel investors and venture capital so the difference between angel investors and VCS are angel investors are usually of rich people who want to lend money to you and and these are mostly in in exchange for shares of the company and venture capital is a company that really funds businesses okay so if you're interested in those maybe you guys can check out shark tank it's a very simplified version of how pitching and funding works but you can really learn a lot especially if you're starting out okay and then funds from winning contests of course this is a niche source of capital because it also depends if there are any contests that apply to your field so usually tech companies join a lot of competitions and then bank loans bank loans and loans from microfinance providers microfinance providers are basically non-bank corporate funds so loans and then government programs BPI has a lot of programs that support and even give capital to MSMEs so and then also credit cards with credit cards I'm talking about if you're purchasing for example you're baking cookies it's always the baking cookies that's the example no but yeah example you're making cookies you swipe on your credit card all the ingredients that you have to buy and then when you so you get and then you get paid and then you pay your credit card so as long as you paid and full it's a great tool to use when you're starting a business and also when you're drop shipping if you guys are familiar with drop shipping you need also credit card it works the same you pay for the products you ship it to your customers and then when your bill comes then hopefully you've already been paid then you pay your credit card info okay so you can learn more about these types of sources of capital on your own I guess so that we don't you know take it doesn't take up too much of our time yeah I'm sorry guys you might be craving some cookies as I will be stating them as examples throughout the the class okay if you guys are familiar with Mark Cuban he's one of the owners of and be a team I think it's Nellis a little short but if you're starting a business and you take out a loan you're a he actually said this in one of the interviews that I've watched before when I was so addicted to shark tank he's also one of the Sharks this doesn't always apply to people but I believe that I actually agree if you're just starting out the business especially if you're not so familiar with how this is a sweat here and you are still like dipping you toes in the water I would really suggest bootstrapping first it has the least liability yes I mean you can forgive yourself or your family's gonna forgive you if you don't pay back your loan but if you borrow money from banks from loan sharks if you borrow money from even investors you owe them a certain amount you you have a responsibility and a liability to them that you don't want you know dragging you forever just in case your business fails because in reality majority of them don't really care of what you do with the money and if your success succeeds or not okay so if you can if it's a small scale business then bootstrappers work save money or like do increments of growing your business okay next is poor cash management okay so this is the most critical part of them all I already mentioned this in my personal finance 101 class but always separate your business income from personal income those who attended my classes before like the personal finance 101 and how to sign a business some of these points might seem redundant but that's because they're important so we separate your business income from your personal income this is true especially if you're self-employed you're a professional you're a freelancer you're an agent or broker the tendency is you're gonna mix all your money in one bank account and that's not healthy for both you and your business okay so prioritize saving prioritize your savings for emergencies rainy days and expansions so I made this illustration for the personal finance class for you to imagine if you're a company so for this class you are actually a company even if you're actually a business even if you're a company one or two equally or still a business and when you get your income you should always give to your savings first so that you can potentially expand and grow your company and then you budget the rest for your utilities for your essentials for your current self what I mean by that is your allowance or your salary from your company so even if you're alone yes you should still get a certain salary from your company you don't get everything then from rent or loans or any other expenses that you have okay so this is because when you're starting a business of course you want it to grow right so when you're actually ready to start accepting bigger clients you also need I will discuss this later and in detail but you will also need more money so where will you get that money if you did not save enough for your business so what you will do is they're gonna shell out money again from your personal income or I mean your personal bank account so psychologically it's not very healthy because when we treat business money we're kind of detached from it in a way like psychologically we're not as sad when we when it gets lesser or not as elated if it gets more because that's business that's the money of your business but when you're dealing with your personal finances you're really emotional about it so when you mix both your judgment is clouded instead of being objective with your business it becomes subject to your feelings more funds now okay so this is especially true again for freelancers and I'm self-employed because that's the hardest to separate okay so here are some examples this is from my own company here is just some examples of how you can track cashflow and outflow this is very simple it's very it's very basic of course if you're a bigger company I really suggest to get a bookkeeper to subscribe to a software for accounting but if you're just starting out Excel is really fine like Excel is gonna be your best friend okay so um it's very simple like what I did here the type of transactions the type of transaction is if it was deposited if I got the check it was a bank transfer or electronic banking etc and then we robot or deposit which is basically and this is very similar to the next one which is basically debit or credit okay this is just a different flow but on this particular or a number if especially if you're doing your taxes link to our voucher so those are you can do links so I suggest you digitize also receipts and paperwork's okay then the payee or company name I'm just covering it just for non-disclosure for our clients and then I'm very simple debit credit we've learned this since we were elementary or high school I think so the bit this money coming in and in credits money going out okay so and then the last one there or this one is the balance so this formula is basically deposit - Woodrow wall and then that's it and then for the next one it equals one thousand three hundred plus deposit - withdrawal and then just copy paste that formula all throughout I'm going down okay so those are just some examples okay here is another example of you need to have a budget or forecast okay so very simple again the most simplified that I can do income and then you do your personal salary or your paycheck and then expenses so here I assume that we're dealing with a start-up okay so let's just quickly run through the story of this sorry of this sheet okay so jinora 2019 it's started okay so he had money from client one time to plan three and four and then he has a retainer fee from you know recurring clients and then that's a total of seventy four thousand let's just say he says okay I'm just gonna pay myself twenty thousand per month that's enough for me and because I want my business to grow okay so he spends that money on utilities like his Wi-Fi because he's let's say he's a freelancer he's a freelance graphic artist he's pasted that money for utilities some electricity and Wi-Fi and then transportation when he has client meetings food or um representation when you for example you pay for your clients because you're trying to win them okay and then supplies like let's see printer ink paper etc and then marketing because he did like some face book boost okay so his total expenses are five thousand four hundred okay so if you can see here he has a net profit of forty eight thousand six hundred okay moving on to February okay he has lesser clients okay so but he still had eight thousand so pace himself the same all throughout okay and then the same expenses expenses and by the fourth month let's just see he had okay sixty four thousand but he's the patient's of the same but now he decided to rent an office and get one staff under him right so he's now a small business he has an office and then yes utility now pays the utilities of this office that's his home anymore and then say he's paying for investments for example he invested in a computer for his staff okay so you can see that if well me okay jewel for doing as you can see his clients drop let's say there was a lockdown there was a pandemic okay so his clients drop in he now only earns 14001 see being the last few months he can still pay himself and his staff he can still pay himself and his staff because he has a rainy day fund his accumulated funds is he now has an accumulated kind of still 68,000 so it's good for a couple more months of expenses and salary right maybe two or three more months for them to look for more clients okay so that's just a really simple example of why I believe even if you're the owner of your business you should only pay yourself a certain amount for us for example of you usually start up minimum wage even for my partner's or even if I am the owner of my sole proprietorship or I'm the business owner of I'm alone basically so I'm self-employed so I still pay myself a controlled amount that I can set my expectations to every month okay so I hope that was clear and helpful next okay so also you identify fixed cost and variable cost so in the times where you have to cut cost you can check the variable costs first and then maybe adjust the fixed cost if you still really need to bring down your expenses okay and the next is we're gonna talk about poor record-keeping and controls okay so I subtype of this as the boring fault because a majority of the people really don't like this fourth but this is very important also for your business finance financial records okay so record-keeping and control basically it's for tracking and forecasting and also for security okay so what do I mean by tracking in forecasting and security okay for example again you're a small business cookie business take always keep all your receipts so that your expenses recording of your expenses accurate you won't be both parking it because Boyle parking in a business it's very dangerous and also you can also for cash you notice me banana loaves and the process of bananas fluctuate but you have let's see three months worth of record of how much when I'm asleep I price per kilo you can now then a piece find median or an average price of what you should expect because you can always expect it to be the lowest and you can always expect it to be the highest because it will significantly affect the way you price your products okay and then display permits and file contracts this is of course when you're already dealing with clients this is when you're registered already but I would really suggest to keep digital files of your business permits your bir certificate your dpi whatever all your papers your contracts with your landlord with your clients because it's really just easier it's way smaller I think Don C mentioned this in her organizing class but like everything is just in your laptop is just on the cloud it's sweet less space consuming also so file records receipts everything digital so of course you still need to have physical physical contracts and physical permits always get always keep a digital file so for example with like right now we don't have access to office our landlord is not allowing us to in also because um Ireland is he stopping rent for awhile so we don't have access to our office so it's a good thing that I have a copy of all our bank records like our bank account numbers so I have all the numbers for them I can easily and I have digital banking as well so I can just pay our salaries from the comforts of my so it's really important I think a lot of you can really I'm really during this time that how important being digital files is okay and next if you have employees already keep their records their payrolls and their benefits okay so even like there when you started to hire them their bio-data their NBI clearance keep all of those payroll history so for example like right now again in the lockdown dollar in sss gave an assistance of five or six thousand pesos so they will be asking for the payroll records of all your employees so if you didn't keep a digital file of that then would be making it's either we'd be making up the numbers but you also have like fifty employees so of course it's hard to memorize all of that right so and also their benefits okay so record of all the sss feel health and each other okay so next is control so that's record-keeping keeping all the files in pack being organized record control is securing those files and making sure that only i scan that are allowed to see can see those files so for example employee records and payroll that's quite sensitive in the office space right majority of the people do NBA s for you can you know let your other employees a co-workers from how much you earn because it's gonna be like competitive and everything especially in a big workplace or if you have a last known place so those are sensitive information that you make sure that only okay HR can see or only finance can see and things like that okay so or your bank records like your pass books if it's just laying around there or like your employees have access to them it's also harder for them not to feel unfair or feel greedy so some of these things are what I mean by record-keeping a control again I'm covering like the very basics here but it can go all the way up to proper you know if you have properties already in your business or like a chat area and this is really important if for example your time you're already projecting to grow like you're expecting for growth if you want to take up a load Lowell banks also asked for your financial statements and the BA and bounce would know if you make make them up so yeah and then next is improper product pricing okay so this is what a lot of service industries have a hard time doing for pricing their products properly products and services okay you think you're earning but you're really not okay well let's talk about services first I gave this talk to our interns in our branding agency because um when I started my branding agency last year with my partner's that's where I noticed that a lot of freelancers and service based industries and professionals don't really know how to price themselves especially in the Philippines I think that that's quite hard for people to pay for these types of services especially design and arts so here is a simple assessment that you can do it's called the swim test I did not like and I got this from research so I'm not the owner of this on thought but first I categorize them into two parts swim is I notice more for your clients or others when you assess your clients or other people or other environmental factors and the next is the best which is a self assessment okay so for client and others S is for the size of the company so you have to consider when you price your product i when you priced it from this who are you pricing is it big corporation or is it a start because it would not because you're being biased to like pricing them differently but also bigger companies and tail more work right so next is what's the workload it's very self-explanatory I guess like are they demanding a lot from you or you know they're just getting a little of your services and then impact it will have so for example let's talk about design for example it's a logo if it's a logo that's just gonna be used in social media platforms for a small business then you're gonna price it differently from a company that's gonna have billboards that's gonna have signage just it's gonna have stickers all over their products and manufacturing labels and it's gonna be everywhere right so the impact your service will give to your client it's also different so even if let's say the workload is the same you're basically creating one logo it's gonna have different impacts so and the size of your clients also they are willing to pay more for something that they're gonna be using a lot of right and then next is market free so this is basically compared comparing yourself to other people in the same field there are other businesses in the same field comparative analysis if you must so yeah just look at the market or how is the price so you also know that you're not too overpriced and also you're not too underpriced okay so you don't have to have the same price but there's a range that you have to look for where and where you will position yourself in that range okay so next is the self assessment so test how much time will it as from you how much time will it mean to complete that workload because this is although you will assess if it is worth your time or not so for example you're already at a rate that's that's speaking dollars like that sorry you're around twenty to thirty dollars per hour so that's 1,000 to 1,500 pesos per hour that's your rate if you are moving to think about accepting a client that only pays ten dollars an hour or 500 pesos an hour is it worth your time okay you might argue that okay because this is great for my portfolio or okay because this company will actually give me more potential clients in the future okay so this is something that you have to assess and then experiences you have okay so if you are highly skilled in this in this particular service then you can price yourself smaller as compared to something that you still have to learn so for example the package okay I need a logo and I also need an animated version of the logo okay I'm an expert at making logos already I'm an expert at Photoshop Illustrator and other software's but I'm kind of new with animation and video editing I guess so you have to assess if you have the experiences to meet your clients demands and need with the time also time frame also that thing okay so next is skills that you can offer this is very similar because the experience is also if you have previous clients that has that you already have a portfolio of making that particular product and then yeah so it's interchangeable experiences you have in their skills you can offer and then next is the traits of your clients okay this is kind of like an ended thing if you can okay let's just say this client tastes very well but also this client is not very good for your mental health that means this client is abusive not abusive like physically but you know maybe verbally this plant always puts two down and always like ask for so many revisions that you can't really take so in some way it's also good to forego that pan even if they pay right because also again if you're self-employed you have to take care of yourself super your most important capital you're the human capital okay which i think is three more important than financial capital because if there's no person leading the ship it's just a it's just an empty ship it's just an empty vessel the back so um this is first time it might be the last thing they have to consider because of course you're a business you have to earn money but it's something if you already have the luxury to consider it and deny clients that costs you a lot of headaches then you know maybe it's something that's what you and forego okay so okay with services and products as well I always say this take everything into account for example especially the intangibles um things that you can things are basically not the raw material so for example your time how much is your time worth your transportation your logistics from the meetings that you have almost like twice a week and then the strength is only paying you like five thousand a month a month is it really worth it to be meeting basically two to three times a week on top of your workload hey and then Telecom your Wi-Fi your cellphone your calls your load and other connectivity so this is also something that if you keep on calling for your business and it's like other networks then you have to have the business page for that expense not your personal money and then next is your education so for those people was for example I'm the I'm licensed architect so if I practice architecture I'm going to consider that my like you know we paid for millions for my education right so especially right now like this one is session fees are so expensive or if you did not study it and call all your online education like all your time watching YouTube videos or all your time watching master classes and online classes and some are even paid for right so also consider the education and then also the utilities ok so again when you're baking cookies at home you might not think that you might think that electricity is free but if you're gonna have bulk orders then I think it's also as a respect to your parents or to your partner or your husband that you also pay more for the utilities and you get that some business expense not as a personal expense because if you're if their oven is running 12 hours everyday six times a week that also adds up right so the utilities the electricity again like what I said you gotta calm the Wi-Fi when you're contacting with your suppliers and your clients so don't forget to take these and because majority of the people when they price their products they only really think about their products okay I bought this product for 100 pesos in sharpie I'll sell it for 100 10 pesos but about the shipping fee your load for calling your clients your effort to go and ship the product airtight your buyers Dibby don't forget to take that into account so that when you think you okay I'm gaining 10 pesos maybe in reality you're actually losing 2 pesos and we don't work that okay so this is the last one so this next is uncontrolled growth so I speak a lot with start-ups growing too fast too early so when you're starting a business it's very common to think that the faster you grow the faster you'll be successful and it's very understandable why people think like that because more money is coming in but also when you're dealing with start-up growth you have to consider that when you're getting more clients bigger clients you also need more cash and resources so for example your Prada for you to produce those products you need more capital you need more let's say it's machines that are making those products you have to invest can you keep up with the demand switch later I'll be talking about next experiences okay you've only been around three to six months your startup has been around three to six months and then you get this big client are you sure that you can do quality control for thousands of orders are you sure that your employees are skilled enough and knowledgeable enough to meet the demands are you sure that you can you have the experiences not just producing your product but but as a leader as well so me always remember that when your company grows and you have 1020 employees now you have to find that balance and that groove for you to function as a well-oiled machine so it's your leadership skills already up to par with what the company needs or your partners or the other executives or high-ranking managers ready for this growth as well so when your place in a lot of pressure manual not everyone responds well to it so you have to consider these things are you ready okay so also if you're going too fast and this might be like a case-to-case basis which is also very similar to the personal finance you will expect lifestyle inflation but in terms of a business owner like you're gonna have your before your meetings are just you know coffee at Starbucks maybe now it's like in high-end restaurants and hotel lobbies the bar that's also like hip on your business expenses so you have to grow I'm not saying that your growth should be slow especially if there's opportunity but it has to be well kind you meet them you have to take well calculated risks okay and the next is meeting demands okay so I've already mentioned this with the cash resources and experiences do you have the cash resources and experience as to meet demands because if you do not have like say for example your Volusia nari product like for example when milk P first came into the Philippines or Cebu right if you cannot meet the demands of your clients you let's say for example your marketing is really superb online but you only have one branch and that one branch cannot meet the demands of all the people who want milky then you are giving the space and opportunity for other competitors to grow around you okay so if you can't meet the demands of your potential clients you're actually giving your competitors a chance to overthrow you or to compete with you basically I hope that made sense okay so this is open tiny Miyazaki uncontrolled growth can lead to poor performance and poor performance and devastate their brand and this is because of my points that were mentioned earlier and yeah um thank you there was a fourth class but I hope you know it and some value