Understanding financial discipline and financial plan in tour operations
In this video, we are talking about the financial discipline in our day to today tourism business management. This simply means being able to know how much money is coming in and how much money is getting out of your tourism business.
In other words how you control the money that you are spending and earning.
How do we get into a poor financial crisis?
- Failure to plan and prepare for future expenditure.
- Lack of a Finance Manager.
- Impulse buying.
- Poor decision taking in funds approval levels
- Slow and late payments to suppliers
- Paying off debts in lump sums
- Poor business speculation.
Why you must exhibit a high level of financial discipline in your tourism business?
- To stay and survive in Business.
- This is the only way to maintain a positive cash flow.
- For trust & credibility among your trade and suppliers.
How to gain a positive financial Discipline.
- Prepare & Plan future expenditures. This means avoiding impulse buying.
- Avoid Peer Pressure to spend by setting your financial goals.
- Pay off your suppliers or all tourists’ products in time.
- Get a finance manager and work as a team.
- Introduce a working system regarding approvals
- Think of business/product diversification.
