COVID-19 has brought significant changes to business operations including the process of prospecting, selling and receiving payments. The capacity of businesses to efficiently manage their finances would now be a major differentiator between success and failure. As a small business owner, you must therefore better plan, organise and monitor your financial resources in order to achieve your set goals.
Below are some approaches to achieve improved financial management irrespective of the objectives you have set for your business.
1. Review your Business Plan
The changing economic times require that you review your business plan to ascertain where you are and where you want to be in the next one year as a minimum. It should detail how you will finance your business and its activities, what money you will need and where it will come from.
2. Set Monthly Realistic Goals
Having a monthly plan and budget will guide you in making informed business decisions on savings, investment, eliminating or introducing a new business line, and so on. You will also be able to regularly monitor and evaluate your business progress to know how much sales you’re making, your stock levels as well as areas that need improvement.
3. Ensure customers pay you on time
Reduce the risk of late or non-payment by stating your credit terms and conditions before going into any transaction. You can do this with Paylink e-invoice that avails your customers various options of making payment to you including USSD, Debit/Credit Card, Internet Banking and Wallets. Paylink also gives you a comprehensive view of your transaction records – all on a screen.
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4. Review your day-to-day costs
Even the most profitable companies can face difficulties if there isn’t enough funds to cover day-to-day expenses, especially in present-day Nigeria. Such costs would typically cover power, wages, data, equipment purchase and repair, among others. You should therefore be aware of the minimum your business needs to survive and ensure you do not go above this except where justifiable.
5. Future-proof your finances
Do a SWOT analysis for your finances to identify the loopholes that could impact your ability to increase productivity and income. Things to look out for include changing trends, evolving technology, limited skills, nature of your business and the demand for it, among others. You should also stay informed by attending relevant trainings, seminars, and symposiums to sustain the success of your business especially as there are many free qualitative ones now.
Good finance management will help your business make effective use of available resources, increase competitive advantage and prepare for long-term financial stability. For one, Paylink can boost your efficiency and help you scale with its online store, seamless payment options, detailed transaction records, and other benefits. Click HERE to sign up.