5 Simple Ways to Manage Operating Income

Every effort is being run certainly accompanied with efforts and hopes to benefit greatly. We are working hard to develop the business because we also want to enjoy the results.

But as entrepreneurs we should be able to be wise in managing operating income we get.

Here are 5 simple ways to manage operating profit:

1. Set aside 20% of net operating income to be used as investment or reserve fund. This investment is beneficial to the operational needs of the business in the long term, and only used for the needs of a truly urgent. These investments can take the form of savings, deposits, gold, property or securities.

2. 10% of the net operating income is used for business development. Eg for the development of infrastructure, human resources, IT systems, or open a new branch for business expansion.

3. As a reward for our hard work in managing the business, we can use 10% of operating income for personal and family.

4. As a form of social responsibility and our concern for the environment, set aside 10% of operating income to charity, social funds, and infaq. Thus, not only the course material benefits that we get, but also the blessing in the business is run.

5. Using 60% of the net operating income as a rotating capital, inventory and business operations.

By setting the division's operating profit percentage, it is expected that we run the business will grow and provide benefits not only for employers and families themselves, but also on the surrounding environment.