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5 Financial Strategies To Help Grow Your Business As An Entrepreneur -

Nigeria Student Forum / General Discussion / 5 Financial Strategies To Help Grow Your Business As An Entrepreneur -

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Sani Ibrahim
Abubakar Tafawa Balewa,University
Agricultural economics and extension
100Level, Nigeria.
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Access to finance has been one of the major challenges
continuously mentioned by micro, small and medium scale
entrepreneurs. However, building a successful business
doesn’t necessarily mean pumping in fresh capital every time,
rather it is about being intentional about how the financial and
human resources available to you are properly managed.
Beyond sourcing for loan, credits and other financing options,
here are some strategies you should consider in order to help
your business grow and also attract funders like FCMB.
Separate your Business Accounts from your Personal
Accounts
Many small business owners often make the mistake of mixing
their personal funds with their business funds. This is often
because most businesses started as a side hustle and the
document required to set up a corporate account such as a
certificate of incorporation is unavailable.
As an entrepreneur seeking business growth, it is important to
separate your business account from your personal accounts.
With this, you can better ascertain how much you earn within a
period and the expenses incurred. In addition, it would be
helpful at the point of seeking funds from lenders who often
request for bank statements to project your cash flow and
determine your capability to pay back.
Have a Budget
Budgets are essential tools that enable individuals, businesses
and governments plan ahead in order to avoid financial
problems. With a budget, you can project your earnings and
expenses accordingly and make more informed decisions
about how to move your business forward, while avoiding
frivolous spending.
For instance, if you know the limit you should spend on
marketing is a certain amount, you will be able to strategically
determine the best marketing channels or tools needed to
drive sales. Similarly, variations between your budget and
actuals gives you insight into what you did or can do
differently to boost your financial position.
3. Explore Barter Opportunities
Bartering is one of the oldest forms of doing business and it
can still be explored today. It is simply the exchange of goods
and services between businesses without monetary
consideration. For instance, you can offer your professional
expertise as an accountant in return for advertising
opportunities on a media platform. Similarly, if you are a
fashion designer, you can make wears for a brand influencer
in return for a mention or promotion of your brand.
Most importantly, ensure that what you are offering is equal or
of great value to what you are requesting, while your proposed
business partner is also willing to explore such opportunity.
You should also ensure you properly account for the services
rendered and received, as they would also form part of your
financial records.
4. Comply with Regulatory Requirements from the very
beginning
Complying with the regulations and policies within your
industry is essential. Though they may appear insignificant,
however, as a small business owner, it is important to have a
compliance checklist in order to ensure you meet the
minimum requirements to operate.
Some of the common regulatory requirements that you should
not ignore are payment of taxes, licenses or permits related to
your business e.g. NAFDAC Registration and pension for your
employees (if you have three or more employees).
Non-compliance with rules and regulations can cost you more
in future or affect the sustainability of your business, especially
when they become legacy debts. Thus, it is important to build
in compliance into your business from the very beginning
because ignorance won’t be an excuse.
5. Work with professionals that understand the nature of your
business
Often times, small business owners hire professionals that do
not understand the nature of their business. All in the name of
trying to cut cost or wanting to do business with a friend or
relative. It is important to know that this can be detrimental
and more expensive in future. For instance, an accountant with
expertise in preparing financial statements for an oil and gas
firm may not have the required experience needed to prepare
a financial statement for an insurance company. Thus, it is
important you engage professionals with a track record related
to your business type.
In all, hire a professional that understands your business needs
and structure a payment plan you can afford, as doing this
would save you the cost of spending more to get things done
accurately in future. There are various platforms that have
service providers listed at affordable prices that you can
patronise. One of such is the FCMB Business Zone which has
various communities that can connect you with SMEs in your
industry.

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