One of the things many of you ask me during our meetings is how to build financial reserves in your small business. Well, first of all, your business should be making profit. You cannot build reserves if your business is not profitable. If your business is not profitable, you need to address that problem first.
One of the main reasons why businesses do not succeed is because they run out of cash. This is often caused by them having problems with pricing and costs. This means that their financial management is not as it should be. A business budget can help you to avoid these issues. What are the benefits
Over the past few weeks, we have been looking at Financial Business Management 101. We started with an easy way to do record keeping Followed by how to create your sales forecast for the coming year Then, we looked at how to determine if you have the full overview of all your costs and expenses
We are continuing the series on business management basics. Last week, we looked at a 5-step approach that can be used to: get an overview of all your expenses divide them into direct and indirect costs and take action and reduce your expenses so that your profitability increases. The week before that, you used your
I recently spoke to a business owner who has been struggling with his business. He told me that his business is doing well and he keeps getting new customers, but at the end of the day, the business keeps making a loss. During our conversation, I realised that he did not have a total overview
Nobody knows the future. But you can take steps to prepare your small business to deal with that same future. One of the ways to do this is by having a sales forecast. Why is a sales forecast important? Because it helps business owners to determine: how much revenue you will be able to make
Basic financial management is the number 1 thing every small business owner should know how to do. You need to know how to do basic bookkeeping, how to calculate your financial position, and how to forecast when + how much money is coming in and going out. When you talk about bookkeeping, budgeting and financial
Note: this is the last post for 2020. Guide My Growth will be back in 2021 with more advice and insight for your small business in Africa. If there is a topic you want me to talk about, use the “Ask me now” buttons on this page to send me a message. I look forward
Today we will talk about the most important part of any business: sales. I say the most important part because a business that does not have sales is out of business. When you increase your sales, you will make more profit. What business owner does not want that? Particularly if you can increase your sales
The top 10% of your customers spend up to 3x what the rest of your customers spend. The top 20% of your customers are responsible for up to 80% of your total sales. These 2 numbers should convince you how important it is to make sure that the top 20% of your customers are satisfied.
If your business partnership is struggling, it will cause operational and financial problems in your business. Sometimes, you can solve the problems if you and your business partner can find time to sit down and discuss strategy. But at other times, the business partnership has no future and the only thing to do is to
A business partner is not the same as a business partnership. Many times, you hear about businesses that have more than 1 founder. These founders are business partners. Or you may hear about businesses that have a partnership with other businesses. We have already talked about various kinds of business partnerships, so today I am