This time I will show you what you must do everything to become a financial leader, who is, in short, who should be entering the world of money if the company or institution to which it belongs.

The great purpose of a financial leader is to maximize the value of the company. How to do that, easy: First is the one who gets the money, adds value through its business system and returns more than it has received thus increasing the value of the company.

This final value, is based on:

The market value (the price you would get from its sale)
The net value (the result of subtracting liabilities from assets)
The liquidation value (the price that would split liquidating assets in times of crisis) and the perceived value of the owner (always higher than the potential buyer).

For all the above, the financial leader must:

1. To optimize the investments, thereby ensuring sufficient capital to maintain the financial health of the company.

2. To optimize revenue. The more income a company receives, the more successful will be the highest business value. But beware of too rapid growth as this generates a considerable cash deficit. The cash is spent on the production and marketing before they start to receive income.

To avoid this, you have to plan and control the flow of cash to anticipate and prepare for a possible rapid growth.

3. To optimize the loans. The market value of a company will be reduced if potential investors believe that is over leveraged. The debt increases the risk and the risk, in turn, reduces the value of the company. The acceptable level of debt depends on the individual enterprise.

4. To optimize the added value of business systems, for the real benefit comes from the added value created by business systems in-house through the performing resource management.

5. Minimize expenses. Any business, regardless of size or level of wealth, must maintain a strict and constant control of your expenses.

6. Minimize taxes, i.e., assess the tax consequences of any decision taken in the business.

7. Minimize the risk factors. Although logically many risk factors are unpredictable events, at least they can take some steps to minimize their impact. In this regard, plans, insurance coverage, the backup computer files or reserved funds are tools whose value is sometimes taken into account too late.